WebsiteClosers® presents a 7-year-old Manufacturer and eCommerce Brand that sells a growing line of highly successful Honey-Based Herbal Products, all manufactured in a facility that the company owns and operates out of, which is FDA-certified as food-grade clean and holds a CGMP license.
Their current line of 65 SKUs include flavored honey, gummies, topicals, oils, teas, and baked goods. Their honey and gummies are their flagship products, and account for 90% of total sales. They enjoy an AOV of $69 and a very high 53% Repeat Order Rate.
Their ingredients are sourced from reliable US suppliers, and their honey comes from a combination of their own farms and a trusted East Coast supplier. These ingredients are then manufactured in-house in the company’s own facility.
The brand’s growing audience base largely consists of adults aged 50 and older. As they value high-quality, easy-to-use products and are less tech-savvy, the brand ensures a straightforward, accessible shopping experience that relies more on natural remedies, rather than pharmaceuticals.
Business Broker Takeaways
1. Dedicated Following. The effective, high-quality nature of their products and their simplified storefront has led to many of the brand’s customers coming back for more. They boast a 53% Repeat Purchase Rate, enjoy 30% profit margins, and have seen 20% SDE growth since 2023.
The company ships around 200 to 250 packages per day from their 1,000 square foot warehouse, and typically hold about a month’s worth of inventory.
2. Strong Marketing. The brand’s primary acquisition channel is Facebook Ads, which are handled by a 3rd party agency. These ads have a focus on maximizing ROI through strategic bidding and backend optimization, giving them more value for the company.
Their email marketing campaign to their 77,000 subscribers has also proven highly successful, accounting for 40% of their revenue and acting as a key driver of repeat sales.
The company supplements these strategies with additional content like sleep stories and podcasts, which foster loyalty by engaging customers beyond their products.
3. Streamlined Operations. Though the brand has 3 owner operators, only one directly handles eCommerce operations. Their operational workload requires about 20 hours per week, which is spent on strategy, content creation, and overseeing teams.
These responsibilities can be fully done from a laptop with internet and any geolocation, which will offer a buyer the freedom to work from wherever they please. Many aspects of the business, such as fulfillment and customer service, are already automated or outsourced, which will also make the brand more manageable for a new owner.
The company has 2 employees. The first is responsible for customer service by email and social media responses, and the second handles customer service by phone.
Scale Opportunities
The brand is in an excellent position to scale, with a variety of growth opportunities available for a buyer to capitalize on.
For example, they could strengthen their organic reach and long-term visibility by investing in SEO for their website and by optimizing their repeat customer strategies. They could also attract even more customers by expanding into new ad platforms such as Google and TikTok ads.
The company could generate stronger recurring profits by scaling their membership program, and by expanding into Amazon.
By listing their topicals on the platform, they could drive new customer acquisitions, funnel them into their direct sales platform, and use tools such as Subscribe & Save to boost their revenue. They could then further diversify their revenue streams by revisiting their wholesale relationships.
Finally, the brand could go for the low-hanging fruit of adding new products to their SKU roster. Niche or seasonal products would increase purchase frequency, target new customers, and encourage more repeat sales.
Conclusion
This acquisition is based in a heavily evergreen market and has the loyal customer base to show for it. They are in a prime position to be optimized further for an even lower workload, and with additional products and a new marketing campaign, they could hasten their growth and help a new wave of customers rest easy.
