Website Closers® presents a Nutritional Supplements eCommerce Brand that supplies a line of unique, exclusive Nootropic Supplements on the Amazon.com marketplace that have knocked their competition out of the park. Since their inception, this incredible FBA eCommerce business has shown consistent profitability, as they wisely spent their growing years generating sales toward their Amazon storefront, and even established a supplementary Shopify store to further strengthen their revenue.
Operations
Current ownership uses clever product development to allow for premium pricing strategies, which, in turn, maximizes profits. Their hard work has clearly paid off, as they now enjoy a remarkable 24% Repeat Ordered Product Sales rate across their line of SKUs, which have over 20,000 strong reviews across the array.
Along with their respectable Repeat Order Rate, the company also boasts an Average Order Value of $25 and a strong Customer Lifetime Value. Most of their SKUs are offered through Amazon’s Subscribe and Save program, which has risen to a subscription count of more than 5,000 at the end of Q1 – 2023. Seeing that this has required no additional marketing effort to attract these recurring customers, this has undoubtedly proven to be a very successful move.
All the company’s SKUs are manufactured by the world’s leading contract manufacturer of supplements, who have FDA facilities registered and are GMP certified. These qualifications ensure that strict quality assurance processes are adhered to, creating the best quality products possible that meet all the necessary standards. The brand largely uses Amazon FBA to handle all their logistics, but they also make use of a 3PL warehouse to manage the inventory, with around 20% of the overall stock housed in Amazon warehouses at any time. The buyer could theoretically ship more of their merchandise to Amazon, which would cut down on their warehousing needs.
Their orders are placed every two or three months and have a 30% deposit term, while the lead time from sourcing to Amazon is approximately four months. As their supplier is based in the US, the company has yet to experience the supply chain issues that plague many of their competitors.
The brand’s key strategy of providing unique nootropic supplements with high prices has been carefully thought out, which, in turn, has led to an excellent product development process for developing those supplements, which consists of the following steps:
They first decide which products they would like to include in their portfolio. Since their inception, the company has prioritized a “quality over quantity” approach to what they have to offer. This lets them focus on creating the best possible SKUs based on consumer needs, competition, and the fastest-growing product types in their industry.
Research is conducted primarily by going through the best-selling products on Amazon, then applying that information to their own brand to determine what they could be doing to make improvements. Their main way of going about doing this has been, similar to “quality over quantity,” a “less is more” model that allows customers take a smaller serving size that still provides additional benefits. For instance, they might implement certain compounds, extracts, or other active ingredients to boost absorption or grant other perks, which makes their supplements more convenient and useful to take than those of their competitors.
Their strategy has led to them having a highly desirable and highly exclusive line of products, which can then be sold at higher prices. These higher prices serve the dual purpose of preventing price wars with other brands, while bringing in stronger profits that can then be used for advertising and promotional purposes.
Scale Opportunities
The brand is robust enough that they have many scale opportunities that the buyer can use, including, but not limited to, mass retail, enhancing email marketing, international expansion, and affiliate and performance-based marketing.
Their rampant success on Amazon means that they could use the site’s global platforms to expand into additional, promising markets around the world, such as parts of Asia and South America.
The company has been heavily automated, to the point that each owner needs only about 10 hours per week to manage their day-to-day operations. Their primary tasks consist of:
- Optimizing Amazon listings, ranking keywords, and creating promotions
- Working with an agency to ensure the highest PPC return on investment
- Maintaining inventory to ensure products are always available
- Promoting the brand on social media to drive traffic to the listings
- Email marketing to boost sales and launch new products
Staff Members
Outside of the owners, the brand has no full-time staff, instead relying on part-time staff, virtual assistants, and Fiverr contractors to handle graphic design, social media activities, and Amazon operations.
The global health supplement industry has truly hit its stride within the last decade, as more people by the day come to realize how important it is to look after their health and dietary needs. As more consumers take an interest in taking care of themselves, more will inevitably explore the supplements market, fuelling substantial growth heading into the future. Supplements also happen to be a convenient, easily accessible method of improving one’s health, making them immensely desirable to an increasingly health-conscious population.
This bountiful acquisition is a fit choice for newcomers and seasoned buyers alike, being flexible and profitable enough to meet whatever needs their owner has. From their fine-tuned financials and systems to their exclusive SKUs and dedicated customers, the brand is sure to be a healthy addition to your portfolio.
