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Amazon FBA Nutritional Supplements eCommerce Brand – 38% of Revenue from Subscribe & Save – Currently Scaling on 160+ SKUs

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Website Closers® presents a scaling, highly sticky Nutritional Supplements Brand that has achieved strong sales growth over the past several years as the company put a renewed focus on the Amazon.com platform and made a concerted effort to introduce new and unique SKUs to their portfolio. As a private label supplements brand that primarily sells via Amazon FBA, this 8-year-old company now offers 160+ SKUs and has 15 new products currently under development. The brand has a growing customer base to tap into since the global supplements industry is projected to reach $230 billion by 2027, a stunning 8% growth rate. This brand is riding the wave of heightened interest in using vitamins and supplements to address a wide variety of health, nutrition, and lifestyle concerns, ranging from immune support to digestive wellness, relaxation, and fitness – all areas covered by the brand’s product array.

A key sign of the brand’s stickiness as a dietary supplement brand is that 38% of sales now come from the Amazon Subscribe & Save program, which means the true stickiness of the brand is far higher since many consumers continue to order the product as they need it instead of using the Subscribe & Save platform. This program has driven up the brand’s Repeat Order Rate considerably and adds healthy margins to ongoing sales since the customer LTV far exceeds the initial cost of acquiring the customer. Having 100% positive reviews on Amazon has contributed to this growth, enabling the company to enjoy to maximum benefit from word-of-mouth referrals.

The skyrocketing profits enjoyed by this brand in the last 24 months, and the fact that they continue to research and develop new products, positions this company for a stunning growth curve. For a buyer, there are plenty of terrific other benefits to consider.

The brand’s products are well researched. As part of their effort to provide the right products to the right consumers, the company set out to be certain the products they were marketing were in high demand. The company conducted a wide search to find potential products that customers were looking for, and their methodology included brand analytics to identify pertinent keywords, and a complete competitor analysis.

More importantly, the company then identified gaps in the vertical to develop unique products specifically responding to customer needs that were going unmet. In some instances, the change was as simple as offering popular SKUs in capsule form since competitors were only offering something similar in powders.

After doing a cost analysis to see which products were worth investing in, and customer research that asked each customer about their products, the company began developing a rising number of new SKUs, products designed to strengthen the immune system, support digestive health, enhancement moods, provide nerve and muscle support, and much more.

All products are made and manufactured in the U.S., with many of their products created using custom formulas designed specifically to meet their customers’ needs.

Amazon has become their ideal platform. While the company has been improving its Shopify website, Amazon filled in the gap, with sales soaring as the brand used PPC ads on Amazon to introduce their SKUs to the site’s immense audience.

Focusing on both product development and SEO keywords in product descriptions, marketing expanded their customer base considerably. They benefit from using Fulfillment By Amazon for fast shipments and deliveries. Their products are sold Prime, and more importantly, the company enrolled in Amazon’s Subscribe & Save program – and so did a massive number of their customers.

In the past two years, subscriber revenue has represented 30% of all sales, and within the past few months those numbers have risen to 38%. That doesn’t include repeat customers who are not subscribers.

Now with 160+ SKUs, sales have been soaring on a modest Average Order Value of $22. Customer reviews have been an important part of their success. Receiving unanimous praise from their Amazon customers and plenty of 5 Star reviews, customer testimonials about how their products have helped address specific issues have proven to be one of their strongest marketing tools. Buyers trust the reviews of others when there are lots of them, and the company now more than 1,300+ reviews on the site.

Sales are strong among a diverse customer base. The brand’s top selling product, a general immune support supplement, represents 35% of sales, but their second biggest seller, a muscle wellness supplement, is 7%. The brand enjoys sales across a multitude of different supplements, which has enabled their revenue stream to continue rising. Their top seller has also become an Amazon Best Seller in the category of Superfood Tablets.

Their customer base is highly diverse. The largest percentage of buyers, 24%, are between the ages of 55-64, but they also sell to the 45-54 age group (21%0, 35-44 group (14%) and buyers under 34 (10%). The household income of their buyers ranges from $50,000 to  $149,000.

For their top selling products, the company is making 200+ shipments a day, and they average 100,000 units of inventory, or about 3-4 months’ worth, at all times.

The company benefits from having an experienced workforce in place to keep operations running smoothy, including a general manager, customer service manager, marketing, and data analyst, and two full-time assistants.

As the company continues developing new products, their track record demonstrates that product diversification has become a key to their success in the rapidly expanding market for health supplements. The company is now working on an additional 15-20 mid-range products to continue boosting their presence within this field, while their success with subscriptions is a clear example of how well customers are responding to their products.

For a buyer, this is one healthy investment. Contact Website Closers today to learn more about riding this key leader in the supplements space to considerably higher profitability in the future.

This eCommerce Brand is Represented by:

Website Closers

Tech, Internet & eCommerce Business Brokers

Listing ID: WC2541

Asking Price
$ 7,600,000
Cash Flow
$ 1,473,717
Gross Income
$ 4,375,636
Year Established
2014
Employees
5
800-251-1559