Website Closers® presents an eCommerce company that has rooted itself deeply in the evergreen OTC, Haircare, and Skincare Verticals, primarily on the Amazon Marketplace. This brand has created a solid foundation for itself in the health and beauty products niche and is ready for scale under new ownership. Centralizing its interest in high demand OTC health and beauty products that are increasing in popularity, this business creates consistent and predictable demand for the goods it sells through a series of R&D tactics to inform on market dynamics and to locate consumer product opportunities that will give them the best bang for their investment buck. Their mission is to find the products in the highest demand among consumers, then source them through their extensive supplier network.
Earning Amazon approval to sell skincare products and over the counter medicines on the principal site, this brand was provided with the ability to continuously add new SKUs, including a wide variety of highly sought-after products used daily by millions of consumers. With these mechanisms in place, thousands of additional SKUs can now be added to this foundation, making scale literally unlimited as a potential. Possessing the enormous potential to grow rapidly, this company could add these products and branch them into new categories while improving digital marketing to drive strong revenue and profitability growth. With its recurring profitability of daily-use products, they have strategically developed incredible industry relationships.
Their current 2021 full year projections put the business’s sales trend at roughly double their current TTM sales, so the growth for this business is astounding … and more can be said about their recent YOY analysis, having doubled more than their profits in the last few months alone. A new owner will be walking into a first-rate, upswing business in a sought-after Health & Wellness Vertical.
Harnessing beneficial vendor relationships has continued to provide this company with new sales opportunities, giving them access to additional brands that had just become available. Expeditiously, their SKUs shot up to 460+, a huge catalog for such a young business.
Since their products are in such high demand, the company has minimal seasonality. They also benefit from a growing customer base that Amazon attracts. Their own customer demographics cut across all age groups, and the products appeal to consumers who use health and beauty items daily.
Customer reviews remain vigorous – and not just for the products themselves. Earning a 99% positive Seller rating on Amazon, the company also draws awareness from its premium customer service and fast deliveries. Their products are conveniently housed in Amazon’s warehouses and shipped using Fulfillment by Amazon.
The current owners spend between 30 and 40 hours per week operating this business, their busiest peak rolling in with the holiday season when online spending increases significantly. Although an absence of staff, they do deploy the services of a contractor who helps with inventory processing and eBay listings. They typically receive up to 10 customer service inquiries a day.
Accumulating an average order value of $26 on Amazon and $17 on eBay, sales began to soar. In a clear demonstration of how well calculated their product selection was, at least 50% of their products now sell at least 1,000 units each month on Amazon, while a few sell upwards of 20,000+ units monthly, a stunningly high level of recurring revenue for these common but widely used products. Verily, the brand now has 20 items ranked as Best Sellers in Amazon’s Health & Household and Beauty & Personal Care categories.
As their sales began to extend even further, the company continued to source through individual retailers and U.S. based distributors, reselling well-known, branded products to their consumers. Only selling products that software tools indicated would sell at a minimum of 1,000 units each month, they quickly developed several top-selling offerings, including skincare creams and allergy medications.
To aid in seamless business resumption, this system created by current ownership will be versed to new ownership, making this acquisition highly interesting from a cash flow perspective. It also creates enterprising opportunities from the intangible know-how achieved during training.
This venture has the ability to grow exponentially beyond its current B2C sales template. Their current model still makes up the vast bulk of their overall business, with 94% of gross revenue coming from Amazon and 4% from eBay. However, the company has started receiving bulk wholesale orders, now 2% of their sales and rising, and potentially quite lucrative, since their average order value on B2B sales is a hefty $9,890+.
Developing an assertive digital marketing campaign aimed at expanding its customer base and a redesigned approach to social media management that focuses not just on its existing Facebook page but new accounts on popular sites such as Instagram and Pinterest has proven to work in favor of similar companies in industries like these. Email marketing and text messaging have also been used to establish a reliable source for new products.
Redirecting its marketing efforts to encompass both their current offerings and direct consumers could also include allowing customers to add their email address to a database that is used for regular email marketing campaigns. The campaign would offer sales and promotions, and a blog on the website to drive organic traffic.
Expansion into new sales channels such as Walmart, Target, and other popular secondary eCommerce sites would also drive sales higher, and so would an international expansion using Amazon’s foreign platforms. Also, leveraging the various vendor relationships the brand has built can fortify business partnerships and wholesale distribution.
Looking to step out into other industry categories, this brand is already approved to begin listing items in new categories such as pet food/supplies, pesticides, toys, and grocery items. The company already has 100+ new SKUs that are available for onboarding, products that are both in high demand and readily available from their vendors and protected from competition by Amazon’s gating policy for the sale of these categories.
Their detailed market analysis, invaluable vendor relationships, and hunger for categorial expansion have set them high above the competition, enabling this business to select only high-earning products in exceedingly elevated volumes. Permeating the current market and only looking to hit the ground running with a new buyer, this is the perfect opportunity to tap into a business that is perfectly positioned for immense return.
