Website Closers® presents a unique eCommerce Brand that has built a devoted audience through its highly effective Tincture Oils, derived from the Shiaqga Mushroom.
Since its inception, the business has demonstrated consistently strong financial performance, achieving a $162 Average Order Value, and boasting a 40% Repeat Customer Rate. Along with glowing reviews and testimonials, it serves as a testament to the product’s demand and superiority in the market.
Business Broker Takeaway
Our analysis of this business shows that the value propositions present are strong for a first-time buyer looking to get into the online space. We are excited about this business for 3 important reasons:
The core product is exceptionally unique, and the vertical is in high demand. It is sold exclusively under the brand name and sourced naturally rather than being “farmed.” As a result, it leads the market in extract concentration, thereby being more effective than other iterations.
The business employs minimal marketing yet enjoys repeat purchases organically, reducing Customer Acquisition Costs. The impressive 40% Repeat Purchase Rate indicates a substantial opportunity for potential buyers, as it not only promises a consistent flow of revenue but also presents a golden chance to consistently upsell additional products to these loyal customers.
Management utilizes an advantageous inventory model with their supplier, with whom they have developed a strong relationship. The supplier handles all fulfillment and inventory management, significantly reducing the workload and personnel requirements. Additionally, favorable payment terms have been negotiated, and the company is invoiced weekly in arrears for sold items. These factors contribute to abundant cash flow and low working capital requirements.
The Product
Raw materials for the tincture are gathered by indigenous Americans who have used this formula since before the founding of the United States. They are grown and harvested naturally in the wild, delivering a tincture of the highest quality and potency. The extract has become increasingly popular with recovering cancer patients as it provides a rapid immune recovery for those suffering from the disease. It is also commonly used for daily immune restoration and prophylactic use and has proven anti-tumor properties.
Another pertinent factor is that the extract is medically acknowledged as effective. Subsequently, the business is poised to ride the rapidly expanding CBD wave with a natural, complementary mushroom product that is recognized as more effective for:
Pain Relief
Brain Fog Alleviation
Increased Energy
Improved Sleep
Anti-Tumor Properties
Rapid Immune Recovery
The brand has predominantly grown organically. Digital marketing efforts comprise only customer testimonials through Facebook advertising. Typical customers are 35 and older, primarily with chronic health conditions such as cancer. The lifetime value of each is $418, and they place an average of 2.67 orders.
Workload & Expansion Opportunities
The two owners currently dedicate less than 1 hour weekly to the business. Their core task is approving payroll. A lean part-time staff consists of a manager handling day-to-day operations and two customer support representatives.
The scalability and growth potential of the brand are significant and remain virtually untapped as the current owner has operated the company at a maintenance level for several years due to other career obligations demanding his time. In 2022, there were 1.9 million new cancer patients in the US alone, and the market for this effective, helpful product is ripe for the picking. Subsequently, an ambitious buyer can take full advantage of numerous scale opportunities to boost the top and bottom lines considerably and swiftly.
Implementing a robust digital marketing strategy is essential for the business, which currently relies on organic traffic and limited Facebook advertising. A skilled buyer can transform the online presence by launching targeted campaigns on social media platforms such as Instagram, Twitter, and Pinterest, expanding the audience reach. Additionally, a well-crafted email marketing strategy offers a cost-effective way to acquire and retain customers, fostering direct communication for promotions and product launches.
Enhancing website SEO is crucial for better visibility in search engines, attracting potential customers actively searching for immune-boosting products. Expanding sales to additional platforms like Amazon represents a significant opportunity for dramatic sales growth, leveraging the eCommerce giant’s vast audience and streamlined logistics. Exploring partnerships with Medical Marijuana Dispensaries could prove highly lucrative by tapping into the thriving market for natural alternatives, creating a new revenue stream.
Additionally, diversifying the product line with new SKUs, like Pet Immunity, caters to individuals seeking natural solutions. A strategic move like this could boost sales and capitalize on the growing market for holistic pet care.
No medical knowledge or special skills are required to own and operate the business, and there is no requirement for a warehouse or inventory. While a basic understanding of the mushroom therapeutics would be helpful, this can be learned in a matter of hours. As a result, the company is ideal for a firsttime buyer or an experienced eCommerce operator who can enjoy a brisk return on investment.
