Website Closers® presents an Amazon FBA Brand in the Nutritional Supplements vertical that has shown extraordinary profitability that is increasing with every year that goes by – including a doubling in profit in the TTM compared to 2021. Just a fantastic eCommerce Brand that shows no signs of slowing. It has masterfully attracted sales through its Amazon Storefront and subsequently built a D2C Website that has a long runway as well.
They appear to have succeeded in their mission to provide consumers with high-quality products that actually work, as evidenced by their growing sales, rave reviews on Amazon.com, and a growing Subscribe & Save Customer base (currently at 9,500+ and growing). They offer gummies, capsules and powders – their top 3 selling products on Amazon are in Gummy Form. They currently offer 16 products with tens of thousands of strong reviews.
The sector’s growth is explosive as more and more people realize the importance of healthy ingredients in their diets. Increasing consumer awareness toward personal health and well-being is expected to be a key driving factor for dietary supplements as the working population around the globe is struggling to fulfill daily nutrient requirements owing to hectic work schedules and changing lifestyles. Increasing dependence on supplements to satisfy the nutrient requirement due to their high convenience is expected to drive the market.
This brand combines market analysis with the innovation of its manufacturers to help identify trending products with lower barriers to entry. In addition, they rely heavily on Amazon-specific tools such as Helium 10 and Jungle Scout to help develop their launch strategy to market.
Supplier Relations Inventory Forecasting Finances New Product Development. Marketing Graphic Design Shipping Website Orders Customer Support All products are purchased from manufacturers in the United States. The ingredients are sourced both domestically and internationally. The company uses both custom and stock formulas for its products; however, all products are sold under their own brand name in the health and household category on Amazon.
The company’s inventory is delivered directly from the manufacturer to Amazon warehouses. As a result, 90% of inventory, at any given time, is held by Amazon. Inventory levels range from $150,000 – $250,000 throughout the year. In addition, the company maintains 2 – 12 months of inventory, depending on SKU, and has negotiated net 30 payment terms with their manufacturer.
As with many supplement brands, the summer months are slightly slower, but as a whole, the company sees relative consistency in sales throughout the year. The business enjoys an average order value of $18 across their 16 product offerings, with excellent margins, appealing to a broad audience with its effective and affordable products. Additionally, the brand has a 4.8 Amazon Seller Rating, and all products are sold via Prime, 1- or 2-Day Shipping.
The two owners work just five hours each on the business weekly. Their primary tasks include:
- Supplier Relations
- Inventory Forecasting
- Finances
- New Product Development.
- Marketing
- Graphic Design
- Shipping
- Website Orders
- Customer Support
No additional employees are needed to run the operation.
As successful as the business has already been, scale opportunities are abundant. A new owner has excellent opportunities both on and off Amazon for growth. Due to the lack of advertising knowledge of the owners, it stands to reason that this brand can be scaled drastically with proper advertising on the right channels. Additionally, the Shopify-built website makes up a fraction of total sales. Therefore, it presents a huge area for growth and the opportunity for a new owner to increase margins while driving new customers to the website.
Outsourcing the Amazon storefront to an experienced agency would likely see an enormous improvement in TACOS, a boost in revenue, and the benefits of marketing expertise that the current owners don’t have. Moreover, given its tenure on Amazon, this business can quickly sell into additional lucrative markets, such as parts of Asia and South America and other market segments, expanding the product offering into different verticals.
There is also immense opportunity for a new owner to scale the operation with mass retail. The brand hasn’t ventured into wholesale. However, a focused campaign targeting health stores and possibly hiring reps could create a new revenue stream. A buyer with an established sales network can take this company to new heights through this channel.
Tapping into digital advertising beyond Amazon is an obvious next step, and affiliate marketing and added focus to secondary sales channels can be implemented. This brand’s niche lends itself extraordinarily well to influencer marketing on social media, particularly Instagram and TikTok. They should look to influencers and collaborations to build more awareness and loyalty. This will drive traffic to their Shopify website, and they can look to expand to Walmart and other big box stores. In addition, a strong email campaign for sales and promotions should be created.
