Website Closers® presents an eCommerce Brand you’ll want to hear all about. They are a company that specializes in the sale of over-the-counter (OTC) hearing aids and supporting consumable products, with the latter serving as an excellent source of recurring revenue for the company. Their product array, which includes cleaning wipes, ear wax removal drops, and hearing aid drying capsules, has an Average Order Value (AOV) of $238.67, and they see no seasonality outside of the Q4 boost typical for most eCommerce businesses.
The strong reputation the seller has built with their reputable manufacturer has streamlined their fulfillment and logistics processes with favorable terms, significantly cutting down on working capital demands and enhancing cash flow. This reputation has also allowed the brand to white label their products, with their highest volume product protected by an exclusivity agreement that they hold with their supplier. The company manages their stock through a 3PL located in Phoenix, Arizona to receive returned hearing aids and to ship refurbished hearing aids, replacement parts, and secondary products as needed. They require no warehouse of their own.
Business Broker Takeaways
- Full Team of Contractors. The brand has 13 full-time and 7 part-time contractors working for them. Their full-timers consist of 11 customer support agents, a head of customer support/operations, and a head of video editing who is also responsible for video editing and copywriting. Their part-time contractors, meanwhile, include a financial assistant, 2 video editors, a copywriter, an operations worker, a landing page/graphic designer who also works with CRO, and a content coordinator/copywriter/graphic designer.
- Excellent Marketing Skills. While their competitors’ strengths are in multi-channel advertising and product development, this brand shines best in their extensive understanding of direct response marketing and Facebook advertising. Their core team has over 4 years of experience in these marketing strategies, and all their ad operations are performed in-house. Additionally, while the bulk of their strategy is based around Facebook, they also run ads on Google and Taboola, with agencies handling all day-to-day operations for these channels.The brand complements these advertising strategies with direct response marketing to direct email traffic to their higher priced, premium models, accessories, and consumable products on a subscription basis to increase their LTV. This tactic utilizes their over 81,000 email subscribers to great effect.These advertising strategies combined have given them an average monthly visitor rate of over 183,000 to their website.
- International Potential. Regardless of where in the world a customer is based, deafness is a widespread enough occurrence that the brand’s products are likely to see demand. While the company already operates internationally, with most of their sales being generated in the US, they could quickly boost their profits by improving their global channels. They could improve their current international expansion through native language advertising and support and tap into promising new countries and regions.
Scale Opportunities
The brand isn’t limited to international expansion alone for their scale opportunities. They could implement policy changes and fulfillment from the US for quicker shipment times, improve their products to reduce their refund rate, and expand into new sales channels such as Amazon, wholesale, and other viable storefronts.
They could significantly cut down on their costs through negotiations with their current supplier, by partnering with new suppliers, and ordering inventory in bulk. From there, they could introduce higher priced hearing aid models for stronger profits, and release more consumable, subscription-based products for improved recurring revenue rates.
They could also boost their Facebook marketing through the compound growth of small, gradual improvements, adding onto a marketing channel that has already proven to be highly successful for them. Once the brand sees a large enough portion of sales, they could turn their attention to their Google and Taboola ads, performing them in-house rather than outsourcing to an agency.
Conclusion
This acquisition has rapidly grown since their launch, with their marketing efforts having sent them soaring into a notable name for customers in need around the world. A buyer will inherit the full library of high-quality digital marketing assets and content that the brand has put together, and with the right marketing skills and ambition, they could quickly skyrocket to new heights.
