WebsiteClosers® presents an eCommerce Brand that is in a growth cycle and looking to find a buyer with a similar vision for continued growth. The brand is housed in the lucrative Health & Wellness market, offering a wide variety of natural pain relief products.
Their roster includes, but isn’t limited to, products that help with medical ailments, like shoulder braces, back stretchers, knee patches, and compression gloves. Their products are sold in custom packaging and sourced from a reliable partner that helps them negotiate terms with their factories and handles order fulfillment.
The brand has an Average Order Value (AOV) of $50 and stable recurring revenue, which jumped from $20k to $500k in the last 12 months alone.
While their partner fees were 20% of their revenue until now, they lowered to 15% starting in June, and then further dropped to 12% in August. A further drop to 10% is expected starting in November. This is expected to significantly increase the profitability of their subscription customers, giving a buyer stronger recurring revenue to enjoy going forward.
Business Broker Takeaways
1. High Scalability. The brand is currently growing nicely year over year, but still highly scalable. They have the systems, team, and processes (such as sourcing new products) to help a buyer move this well beyond it’s current levels. They could also grow by adding new products to their catalog, further diversifying their product array and revenue stream.
They also have a system for ad production that has a 10% success rate, which could be combined with a more aggressive ad spend to draw attention to their new and old products alike.
Another way the buyer could scale the brand would be to turn their attention to their Amazon storefront. The company’s Amazon page currently generates 10% of their total revenue, with their official website accounting for the rest. By adding new products to this storefront and increasing its marketing, they could quickly increase their profits and access a wider number of consumers.
2. Low Workload. Current ownership typically spends roughly 3 to 5 hours per week on their key responsibilities, which consist of overseeing the team, conducting product research, running team meetings, overseeing ad management, and keeping an overview of the brand’s cash flow.
The rest of their operations are handled by their brand manager, customer support worker, and various contractors and agencies.
3. Steady Marketing Campaign. The brand uses a combination of Google Ads, Meta Ads, and email marketing to advertise their products. Their Google Ads see an extremely stable RoAS of 2x while requiring an average monthly spend of about $20k. Their email campaign is also highly successful, with 50,000 of their 250,000 subscribers being active and generating $17k to $20k monthly.
Their Meta ads performance typically decrease when scaling. However, they allow for fast scaling and predictable profitability a few months down the line due to their recurring revenue rate.
Demographics
The brand enjoys international profit, selling directly to consumers in both the US and Canada. They see the typical highs and lows of the year for eCommerce brands, with Q4 being their peak season and Q1 being slower.
Their average customer is a woman over the age of 60, with a large amount of disposable income to spend on preserving her health into her golden years.
Conclusion
This acquisition fills a unique role in the Health & Wellness market, with their products acting as trendsetters in the growing natural knee patch niche. They already have well-trained team members, contractors, and over 50 step-by-step SOPs that cover most of their day-to-day operations. Their core processes are also well established within various Google Sheets and platforms.
The seller and current COO are also interested in helping the new owner run the business for 6 to 12 months after the sale. Depending on the buyer’s strategy, the sellers are also willing to assist in creating a plan and informing them of potential issues as they scale the business.
