Website Closers presents a terrific opportunity to get into the fast-growing, Organic Skincare Consumer Products Segment at a time when people are more conscious about their health and looking for natural products across a multitude of categories. This company is especially attractive because it has developed a stunning line of more than 250+ completely organic soaps, butters, oils, and lotions, and built up a solid customer base that’s given them 100% YOY growth.
This brand was developed a decade ago to market their homemade all-natural organic bath, body, and wellness products. They also sell sought-after ingredients to individuals and companies that wanted to make similar products on their own. A business formed at a time when the customer base for natural and organic personal care products was starting to really blossom. The ever-growing demand for organic skin care products is being fueled by an interest in the health benefits of using all-natural ingredients, and by concerns about avoiding the use of animals in making beauty products. This once niche market is growing rapidly.
As sales began to pick up, the company continued to manufacture unique products that include lip balms, ointments, aromatherapy essential oil blends, and other wellness products. Their ingredients include pure essential oils, organic carrier oils and butters, natural additives, and containers. They now market more than 250 SKUs, an impressively large number. With an average order value of $350, sales have skyrocketed. Top selling products have included essential oils and proprietary blends, butters, and soaps.
Part of their success is due to the fact that this company has expanded sales across multiple eCommerce platforms. The largest percentage of sales come from their Etsy shop at 41%, their Amazon shop is then responsible for 27% of revenues and their own Shopify website sits at 23%. This company also has a rising percentage of sales that come from both eBay and wholesale orders.
Another key factor has been the brand’s decision to listen carefully to their customer base and understand what they want and are looking for in organic products, and then ensuring that those needs exactly match what they brand is offering.
For the supply sales of ingredients. Their average order value is much higher, at $650. Sales remain robust throughout the year, while spiking in the winter months when dry weather can impact the skin. This brand has built up a loyal customer base that has rewarded not only in terms of sales, but also high ratings. They maintain a 4.5 Star Seller rating on Amazon, a 5 Star rating on Etsy, and have been ranked a top seller on eBay. Shrewd marketing has contributed to the brand’s success. The company runs PPC ads on Amazon, while using social media posts to boost organic growth.
The company also has a rewards program that customers can subscribe to for $29 a month, which lets them earn points that can be applied to discounts on future purchases, and it has been extremely popular. Sales have also been driven through another creative measure; a print coupon that gets sent out with every purchase from platforms other than their main website to entice customers to shop there. It’s worked extremely well at attracting new buyers.
Utilizing a smooth and efficient operation, ownership now works between 10 and 30 hours per week running the business. Tasks range from picking orders for shipping to inventory management, accounting, and answering customer emails. The company continues to hand make many of their products in-house. There is one part-time employee who ships products and stocks inventory. The business average 6 customer service inquiries a day.
The company uses a 100% stock method for shipments, and they maintain about $50,000 in inventory every year. In peak times, the company is shipping 100+ orders a day.
With this brand riding the consumer trend toward organic products, they have enormous opportunities to scale. One clear method would be through advanced digital marketing. The company could add a blog to the website to boost SEO and organic traffic and use PPC ads to boost traffic to their Shopify site. A regular email marketing campaign would work exceptionally well, since the company has 5,000 subscribers in its email database. A second option, a monthly e-newsletter that includes recipes, would also help to boost their customer base and reward those existing customers, encouraging them to come back for upsells. Regular posts on their social media pages for Facebook and Instagram would boost traffic as well.
Additionally, this brand could expand sales outside the United States and use Amazon and Etsy to launch into international markets. One of the best options, though, would be to continue to add to the brand’s existing SKUs.
This is a business that doesn’t require any special skills by a buyer, and the owners have made this process particularly easy by creating a book of recipes for all products they make – and which are remarkably simple to produce. Considering that this brand has more than 70,000 sales on its Etsy store alone, there is a massive customer base that comes with this acquisition. The fact that they also enjoy 100% YOY growth, are fully branded and trademarked, and is ideally built to scale means the owner has an amazing opportunity to enjoy recurring revenues and the chance to take them considerably higher.
