Website Closers® presents a healthy and growing eCommerce brand that specializes in-house developed Nutritional Supplement Gummies. This brand now enjoys a thriving niche market in the category of health gummies designed to help people lead healthier lives while addressing issues such as hair loss, iron deficiency and anti-inflammatory support.
All of this brand’s products were designed by a medical physician and manufactured in the United States in a GMP Certified Facility that has been certified by the Food & Drug Administration. As so many of their customers are quick to note in their reviews, these products not only work to address their medical problems, but they taste great too. That vibrant connection with their customer base has given the brand a sky-high 4.9 Seller Rating on their Amazon platform and a solid 31% Repeat Order Rate in the last Quarter.
The brand’s decision to market its supplements in gummy form has helped them take advantage of the rapidly emerging market for tasty and appealing vitamin and supplement products. Globally, the gummy supplement vertical has become a popular source for vitamins, nourishment, and nutrition, more so than traditional vitamin capsules/pills. Their desirable taste and proven source for nutrient benefits have made them the preferred option among children and adults alike. Who doesn’t like a gummy bear?
Globally, the market for gummy supplements was $5 billion in 2020 and is projected to grow 12% by 2027. A product that was originally created to convince children to take more vitamins has become all the rage among adults and seniors, giving this brand a phenomenal emerging market to tap into as it begins the process of adding SKUs to their already successful lineup.
Connecting effectively with their spanning demographic groups, this company has grown tremendously in just two and a half years. Launched with the goal of helping consumers meet their nutritional goals by giving them tasty snacks rather than pills or powders, the company carries just 9 SKU’s, each one sourced and manufactured by 3 U.S.-based suppliers; all reliably providing white label products selected after rigorous testing.
With an average order value of $19.82, sales have grown steadily, to the point where their supplement lines have become a staple for consumers’ reliable recurring purchases. They have effectively used the Amazon platform for Amazon’s Subscribe & Save program, which now has more than 3,400 participants. This program is growing by 5% each month, and recurring purchases now represent 14%+ of their total revenue with repeat purchases representing 31% of total sales during the most recent quarter.
Sales are diversified across the board to the point where no single SKU accounts for more than 30% of total revenue. That being said, this company does have a few stand out offerings including biotin, iron, and turmeric gummies. The brand’s research indicates that their demographics center on women between the age of 45-54, who have some college education.
Another important factor to consider is that their gummies are pectin-based rather than gelatin-based. The gelatin products are known to melt in temperatures of 95-100 degrees, which can become a problem at some warehouses during the hot summer months. Pectin-based products, on the other hand, have a melting point of 200 degrees, so these products are considerably less likely to be impacted when stored in a hot warehouse awaiting shipping. That preserves the quality of the product and improves their customer satisfaction levels enormously.
The brand’s sales are generated exclusively through Amazon, and entirely within the U.S. However, the company has developed its own website on Shopify, that currently diverts to their Amazon page for purchasing. Opportunity is there to begin driving traffic to the Shopify website and converting there as well, thus creating an off Amazon following where it is easier to market in social media, influencer networks, etc.
Amazon has given this brand a highly efficient platform for connecting with customers while providing a fast delivery option through Fulfillment by Amazon. Products are stocked in Amazon FBA with 3PL warehouse management used for overstocks. Sales and deliveries are handled so effectively, in fact, that the workload for this business is exceptionally low, at an estimated total of 6 hours per week.
Those management tasks range from sales analysis, PPC management, and account management on Amazon to handling customer feedback and inquiries. A clear indication of just how smoothly this business operates is the fact that the owners have no employees or contractors and handle all business operations themselves.
Amazon could be used as the ideal scale platform for a new buyer, particularly by expanding sales internationally on Amazon’s foreign platforms. Since their sales are done exclusively in the U.S., the company could quickly tap into the markets for these supplements in Canada, the UK, the European Union, Mexico, and Australia, all massive markets to expand into. Additionally, the brand could expand through channel diversification on target+, Walmart, and more.
Currently, the company has a low ad spends that only represents 1.5% of sales, utilizing Amazon PPC only with sponsored products. Expanding to use other Amazon advertising features and onto other channels with an extended budget could deliver incredible growth.
The company has another terrific scale option, and that is to use digital marketing to boost traffic to the website and divide sales between both Amazon and Shopify. The brand already has the tools in place for an effective campaign to boost organic traffic.
That includes a whopping 21,000 subscribers in their email database for an aggressive email marketing campaign that focuses on sales and promotions.
The company’s highly enthusiastic customer reviews, and the fact that they have frequently been identified by Amazon as a #1 Best Seller for their top products is convincing evidence of how well this business has been managed in the past two years. It’s also evidence of how successful the owners were in selecting a niche that is growing rapidly across the globe.
As people have become more conscious about their health and fitness, dietary supplements have become an immensely profitable industry around the world.
These products conveniently ordered online, are reasonably priced, and can provide the kind of nutritional boost that customers want today.
This brand made the strategic choice to focus on gummies, which are quickly outpacing traditional pills and powders as the top source for getting all the nutrients that people need. Based on their stunning revenue growth in just two years, it is clear this company can continue to drive up sales and bring on new customers moving forward.
The real question for a buyer enjoying those recurring revenues is how quickly they want to scale this superb operation and take it to the next level of profitability.
