Website Closers® presents an exceptionally high performer in the niche Health & Wellness Vertical of Human Dietary Vitamins & Supplements. This eCommerce company, operating mainly on Amazon.com today, has developed a large and loyal customer base for their products, which currently has over 100,000 4.5 Star Average Product Reviews just on Amazon alone. The products are designed to assist buyers in coping with daily health concerns, such as gut health, weight loss, hair growth, and skin care. All products are shipped via Amazon FBA.
Recurring Revenue. Their success can be measured in both profit and the important metric of Recurring Sales, where this brand flourishes. 20% of Customers on Amazon are in their Subscribe & Save Program and 43% of customers on the Website are Repeat Customers. And these metrics do not include those customers that prefer not to be in an automated subscription program, but still, buy the products as soon as they run out. Traditionally with companies like this, repeat buyers make up a large portion of monthly revenue.
The brand enjoys a 5 Star Seller Rating on Amazon, with more than 8,000+ glowing reviews on the company from customers who offer first-hand accounts of how effectively their supplements work as intended and have helped to improve their lives. Those kinds of testimonials can be crucial for the success of any brand operating within the health care consumables field.
Chinese Connection. This company, which has its products manufactured for them in the U.S., is now on the verge of an exciting expansion into China, has signed a licensing and distribution agreement with a large, well-known Chinese Biotechnology company to sell their products on multiple online sales platforms in China, a nation with 1.4 billion people. Plans are in place to scale this dramatically given the enormous interest the Chinese Consumer has in buying US Made Nutritional Supplements.
The Supplements Market. The Chinese expansion is a major step forward in expanding the company’s growth potential, but as we will see, the brand has plenty of other strengths that go well beyond this licensing deal. It’s important to understand the significance of this niche market. In the US alone, the vitamin, mineral, and supplements market is valued at $33 Billion, with more than 3 out of every 4 consumers stating that they use these products. Of those customers, 61% report using supplements to support their overall health. Globally, the supplements market is projected to reach a phenomenal $300 Billion this year, as consumers become more aware of how these wellness products can help them live longer and more vibrant lives, combined with the ease of purchasing these products online without the need for a doctor’s prescription. The aforementioned relationship with China will be a big opportunity to grab that $300 Billion in market share.
To succeed in this lucrative but highly competitive field, companies must understand consumers’ evolving needs. Companies that keep up with the most important supplement trends have the ability to address consumers’ current concerns and build their loyalty. One of the keys to this brand’s success is that has been their focus from the start.
The Company extensively surveys its customers. Launched about 5 years ago, from the start this company wanted to know what kind of supplements customers were searching for and needing. Market research gave them a better understanding of the latest health trends, and what health concerns buyers wanted to address most. Surveys were conducted on consumers considered to be their “ideal” customers, asking them what their pain points were. That research led to a series of products that have grown to just under 40 SKUs, all sold under their brand name and made in the US in facilities that meet Good Manufacturing Practice (GMP) standards and have been approved by the Food & Drug Administration (FDA). The company has been able to access certain ingredients that are typically limited to large sellers.
The result has been several top-selling products, including their Keto diet pills. This SKU has historically earned the brand a #1 Best Seller Badge on Amazon in the category of Keto Nutritional Supplements. Revenues are divided between multiple products so there is no single concentration of sales.
Customers have been highly responsive. Their Keto diet supplement has attracted a stunning 48,000+ reviews on Amazon, and this company has done exceptionally well using Amazon to find buyers. About 65% of their customers are women, and the brand appeals to customers of all ages, ranging from 18 to 65+, with the majority being aged 45 to 54. These buyers have come to the company seeking assistance with not just their general health, but also weight loss, skin care, digestive health, the aging process, and more.
Their sales remain strong throughout the year since people tend to take vitamins and supplements on a daily basis. While the company divides sales between its Amazon platform and Shopify website, most of their revenue (98%) comes from Amazon, where the company conveniently has all products shipped through Fulfillment By Amazon, and all SKUs are sold Prime for 1- or 2-Day Shipping. As noted above, their Return Customer Rate is now 20% and rising on Amazon, and even higher at 43% on their own website, where their SKUS has a higher Average Order Value ($50.34, compared to $24.33 on Amazon).
Marketing has given the brand key advantages. To reach these customers, the brand has a multi-faceted marketing plan. PPC ads are run on Amazon and Google to expand the customer base, while their team creates and schedules email marketing campaigns to their customers every week, promoting new products, and offering health tips and advice on dieting and workout regimes. They also create monthly newsletters. Content has been crucial to their success. Their team writes and publishes informative blogs on their website, which have been shared on various health websites, adding authenticity to their SKUs.
They have an active SEO program to improve their ranking in search engines, and a social media marketing campaign on sites that include Facebook (1,600+ followers), Instagram (1,400+ followers), and on Pinterest, where they average 15,000+ monthly views. They remain on top of the latest ranking strategies on Amazon.
Employees & Vendors. The current owners have 12 staff members whose titles include a director of operations, two graphic designers, a marketing director, two product managers, two customer service specialists, two business analysts, and two digital content strategists. This experienced team handles daily operations so the owners spend no more than 5 hours per week on this turnkey business. They maintain favorable terms with one of their main suppliers, who allows them to put 15% down rather than 50% when ordering. All labels and shipments go through rigorous FDA compliance standards.
Summary. The company continues to source new products, with a gut health supplement and another offering anti-aging benefits now in development. Continuing to expand their product line, including into new categories, will enable this brand to grow rapidly, although they have plenty of other growth options, including scaling their China operations, expanding sales onto Amazon’s overseas platforms, and launching B2B sales. The company has already heard from retailers looking to distribute their products. This company has a healthy operation and an exceptionally bright future.
This Amazon FBA Company is Represented by:
Tech, Internet & eCommerce Business Brokers