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High Growth, 8 Year Amazon FBA eCommerce Brand in the Copper-Infused Compression Vertical – Unique R&D System in Place

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Website Closers® presents an eCommerce Brand with nearly a decade’s worth of experience within the Compression Gear Market. While many of their competitors predominantly use nylon or spandex in their products, this company sets itself apart by infusing the textiles used in their gear with the highest copper ions available. Even in their specific niche, they are one of the best providers of copper-infused compression gear, as they use true copper ions instead of the less effective, and more common, copper oxide.

There are many benefits that make high-grade copper-infused products an important option for consumers. Not only is copper self-sterilizing and moisture resistant, preventing rapid odor and sweat build-up, but it has also been shown to ease pain and inflammation. This makes copper compression gear ideal for people recovering from injuries and accidents or suffering from arthritis and age-related soreness.

The company is currently offering 81 SKUs on their website, Amazon.com, and Walmart.com. Their products consist of the most popular types of compression gear, such as compression sleeves, socks, braces, and splints. The variety of their gear offers customers choices that suit their needs and lifestyle, while still enjoying all the perks that come with copper-infused material.

One of the key performance indicators for this company is the system they have created to both locate and launch products. The company has a highly robust, in-depth market research platform that a buyer will be trained on – this system is just as valuable as the company itself. Currently, the company is bringing on around 1 new product every month based on this systematic research and development.

The company’s data points are updated at the start of every quarter, during which 4 to 6 of the top products currently being researched are chosen to be invested in and listed. Once that decision has been made, their sourcing team finds the best factories for each product, and orders samples. The samples are rigorously compared against their competitors’ products, testing for quality and usability to make sure that the gear will meet the company’s high specifications and standards. Once a sample has received the green light, the sourcing team arranges a mass production sample from the factory, and orders the products. A staff member watches over the final creation to make sure everything goes well, and the sourcing team then handles the logistics to send the new SKUs to the company.

The business operates on a 100% inventory stock model for their products, with their stock being delivered from one of three locations. Amazon products are inventoried using Fulfilled by Amazon (FBA), while the orders for Walmart and the branded website are handled by a 3PL. They also utilize an additional fulfillment service, which acts as long-term storage – it is also used for Amazon Fulfilled by Merchant (FBM) deliveries when necessary, and serves as a receiving and staging
warehouse. Roughly 500 orders are shipped every day, though the exact number depends on the time of year.

Though their excellent selection of products has much to do with their success, it isn’t the only factor. Along with their SKUs, the company also promises their customers:

  • 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 get their money back.

As far as sales channels go, Amazon generates most of their revenue, making up 94%, while their website and Walmart make up 3% each.

There is some difference in their Average Order Value across their three storefronts, but all have remained strong throughout the company’s lifetime. Their AOVs can be broken down as such:

  • Amazon: $21.17
  • Website: $32.82
  • Walmart: $16.55

The company sees very little seasonality throughout the year, outside of a slight peak from November to March. This rise during Q4 can be attributed to New Year’s Resolutions, as many customers might purchase compression gear in hopes of getting in shape and motivating themselves to exercise more. Because sales generally remain consistent outside of this period, however, inventory management is typically kept straightforward, and there’s little change in the steady cash flow that the company enjoys.

Their consumer base is made up largely of older groups, such as wives and older men, though they also see customers among Active Athletes and Recovering Individuals. Thoughtful wives are by far the company’s key demographic, with 60% of their audience consisting of married women that are 45 years or older.

Though large, the company has been structured to be highly efficient and turn-key, providing strong profits and a light workload. Outside of contractors handling the Amazon and Walmart accounts, customer service, social media, and a few other tasks, there are no employees outside of the owner. Despite this, the current owner requires a mere 10 hours per week to run the business, with their primary responsibilities consisting of:

  • Managing the team primarily by email, Skype, and Slack
  • Weekly and bi-weekly review calls with contractors
  • Planning for the next forecast period
  • Keeping track and sharing new or recurrent to-dos with 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

The company’s arrangement with their contractors works in their favor in keeping operations going smoothly. It ensures that workers handle the duties that they’re most qualified for and keeps specific parts of the business off of the owner’s plate. This helps keep the workload as low as it is and will give the buyer a vast amount of time to either scale the business, or pursue other ventures, depending on their preferences.

This business is a great option for a buyer who knows their way around numbers and tech has great communication skills and has an eye for the future. In the hands of a skilled entrepreneur, this company can see rapid growth, thanks to the sturdy foundation that has been set up for them and their skilled team of contractors.

This eCommerce Brand is Represented by:

WebsiteClosers.com

Tech, Internet & eCommerce Business Brokers

WC 2836

Asking Price
$ 2,300,000
Cash Flow
$ 658,495
Gross Income
$ 4,126,366
Year Established
2014

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