Website Closers® presents an eCommerce Brand within the Copper-Infused Compression Gear vertical, offering a growing line of products for Lower Body, Upper Body, and Foot Support.
This brand has nearly a decade’s worth of experience within this Health & Wellness Category, and has been able to differentiate themselves thanks to the quality of their textiles, which are made with the highest possible copper ions available on the market. Rather than settle for the less effective, and more commonly used, copper oxide (Cu2O), they instead implement true copper ions (Cu+, Cu++) for a more quality product.
Some studies show that electricity trapped by damaged nerves can be responsible for many daily afflictions, including, but not limited to, pain, burning, redness, loss of appetite, insomnia, and headaches. Copper garments work to alleviate these issues by helping to draw electricity away from the body, with the goal of soothing pain and kickstarting the healing process.
Though this company boasts an ever-growing product catalog, their most popular SKUs consist of their compression sleeves, socks, braces, and splints. Each SKU is either made of or lined with copper-infused textiles in order to be as potent as possible. The brand has 11 established products and 14 new releases. Thanks to the owner’s diligent market research, which can easily be trained post-closing, they release about 4 or more new products each quarter to meet customer demand.
Their revenue channels consist of Amazon, Walmart, and the company’s own website, with their sales being broken down as follows: Amazon (92%), Branded Website (5%), Walmart (3%). As an almost 100% Amazon FBA Brand, the company runs efficiently at smart ROAS and allows the company to keep OPEX low while maximizing eyeballs from consumers on America’s largest eCommerce platform.
The company’s multiple sales channels, while not yet fully diversified, offer a new owner a multitude of scale opportunities, especially if they desire to focus more on DTC sales on the website to help build brand awareness and customer loyalty.
With respect to product claims, the company purports to offer:
The Highest Quality Natural Copper
The Highest Copper Content (up to 6g/kg or 6000ppm)
A PAIN-NO-MORE Guarantee: They’re so confident with the performance of the products that customers are guaranteed to be pain-free within 30 days or they can request a full refund.
Their sourcing strategy has allowed for their products to be as effective for consumers as possible, with ownership performing extensive research to determine what products are performing best in the “copper-infused” ecosystem. They keep an eye on their competitors to see what actions they’re taking, then cross-reference this information with data mining on Amazon using third-party software and analytics. These strategies help the owner rank the products based on a balance of sales volume, competitiveness, and capital cost, then select new options accordingly.
The brand updates their data points every quarter and selects 4 to 6 products to launch. The company then turns to their sourcing team to find the best factories for each product and puts in orders for samples. These samples are compared against other competing manufacturers for quality and usability, which ensures that the final product will meet only the highest standards and specifications. While there might be quicker ways to get products to market, this method helps ensure quality and effectiveness are maintained.
Once the brand is satisfied with a final product sample, the sourcing team and manufacturer order the items and arrange for a mass production sample. An independent contractor also inspects the final creation at the factory to make sure that everything is up to par, while the sourcing team takes care of all remaining logistics involved.
The company uses an inventory stock model, which is delivered from one of three possible locations. All of their Amazon orders are handled through Fulfilled by Amazon (FBA), while their website and Walmart orders are maintained by a 3rd Party Logistics warehouse. They also make use of an additional fulfillment service that acts as a staging and receiving warehouse, which is used for long-term storage and as a safety net for Fulfilled by Merchant deliveries on Amazon. Roughly 500 orders are shipped out every day.
Their Average Order Value varies across their storefronts, but each remains within fantastic margins. They consist of:
Amazon: $22.45
Website: $36.56
Walmart: $16.27
The nature of their product offerings means that they see little seasonality throughout the year, which keeps profits consistent and inventory management much simpler. There is, however, a slight peak in activity in Q4 between November and March, along with the early Q1 of January through February, with New Year’s Resolutions encouraging many consumers to exercise and take more active care of their health.
Though a majority of their audience (about 60%) is made up of married women in the 45 or older age range, their average customer is spread across four main demographics. These are: the thoughtful wife concerned over health, the older man attempting to maintain his own health, the active athlete, and consumers recovering from injury.
Ownership spends, at most, 10 hours every week operating the business, with daily responsibilities consisting of:
Managing the team primarily by email, Skype, and Slack
Weekly and bi-weekly review calls with managers and contractors
Planning for the next forecast period
Keeping track and sharing new or recurrent to-dos with managers and contractors
Reviewing order forecasting and confirming new supplier orders
Reviewing product samples and sharing feedback with the sourcing team
Investigating growth opportunities and interviewing relevant services
Reviewing financials and issuing payments
Operations are straightforward with no local employees – like many Amazon-based companies, this brand utilized contractors and virtual assistants for the operation side of the house. These contractors help manage the Amazon and Walmart accounts, website maintenance and social media, customer service, Google Ads, sourcing and logistics, accounting, and product inspection.
Their use of contractors over hired employees comes with many benefits. It heavily cuts down on the workload, ensures that the workers focus on the specific aspects of the business that they’re most qualified for, and provides the owner with more than enough time to either work on scaling the business, or turn their attention to any other responsibilities they may have to attend to.
This company is a fantastic choice for a seasoned buyer with an eye for numbers, a firm grasp of technology, and great communication skills. The business is already in an ideal spot for rapid-fire scaling, and with contractors managing the bulk of the workload, the new owner can get to growing the business shortly after acquisition.
