Website Closers® presents an excellent opportunity to acquire a 7-year-old, professionally managed, and highly performing business in the Ingestible Essential Oil niche that’s achieved consistent sales and requires a low time commitment from the owner. The brand has been well recognized on Amazon for multiple years and is one of few offering USDA organic, extremely high-quality, food-grade oils that are safe to ingest.
The company has carved a niche for itself and established a formidable presence on Amazon US. Its growth trajectory and success can be well-understood by noting specific attributes.
Key Performance Indicators
One of the standout facets of this business model is its unparalleled ability to secure consistent sales through the Amazon FBA platform. Remarkably, this has been achieved with relatively minimal marketing initiatives, a testament to the organic demand generated around the brand, and the unwavering loyalty they’ve nurtured among their customer base, especially on Amazon.
The brand obtains impressive ad conversion rates on the products promoted through PPC campaigns (Sponsored Ads). This accomplishment demonstrates a deep understanding of the target audience’s preferences and the enormous potential to enhance those efforts across the entire portfolio. Such precision ensures that every advertising dollar is optimized, delivering a robust return on investment.
The company stands on solid financial ground, which can largely be credited to a well-orchestrated working capital model. The owner’s astute decision to prioritize US-made products has paid off, gifting the business the advantage of shorter lead times and significantly reducing any vulnerabilities tied to international supply chains. Thanks to this strategic localization, they’ve negated the common pitfall of carrying excess inventory, which invariably translates to healthy cash flow and financial stability.
Furthermore, the brand can proudly highlight its exceptionally low return rate. Beyond indicating the premium quality of the products, this metric also sheds light on its commitment to meeting, if not surpassing, consumer expectations, subsequently fostering high levels of customer satisfaction.
Additionally, the company’s ability to keep its cost of sales below 20% is incredibly beneficial. By adeptly managing production and distribution expenses, the business has optimized profitability and struck the right balance to offer competitively priced products to its consumers.
Sourcing & Logistics
All raw materials are sourced from reputable suppliers in the US and Canada. The products are USDA-certified organic, 100% pure, and tested and bottled in the USA. A rigorous quality assurance process encompasses purity checks, potency verification, and comprehensive tests for integrity, organoleptic properties, microbial content, GC/MS, as well as heavy metal and steam distillation. Moreover, the brand takes pride in being a part of the Amazon Climate Pledge Friendly program.
While the company’s primary sales channel is Amazon, accounting for 95% of revenue, management has diversified its presence with a Shopify store and listings on Walmart.com and eBay. The brand holds a commendable 4.7-star rating on Amazon, has been awarded multiple Amazon Choice badges, and has maintained an impressive 95%+ positive feedback rate over the past year. All products are marketed under a trademarked brand name, and the owner has fostered strong relationships with suppliers. Inventory is strategically ordered on a weekly basis, with the aim to maintain a month’s worth of stock on hand.
Customer orders are typically Fulfilled by Amazon, but in the occasional event of stockouts at those facilities, the business resorts to FBM. In such cases, a capable team at the company’s 2,500-square-foot warehouse efficiently processes up to 50 daily orders. This warehouse, currently on lease, is available to a potential buyer along with its dedicated employees, comprising a full-time warehouse manager and an assistant working as a contractor. As the current owners operate remotely and not from that site, a prospective owner can seamlessly take over and run the business from any location without disrupting operations.
Workload & Transition
The owner dedicates only 1 hour weekly to the company, observing sales and advertising, which requires little maintenance. His wife handles ordering and customer support.
When new products are set to launch, an offshore assistant creates labels and product images using Adobe Photoshop and Illustrator. This process can easily be outsourced to any graphic designer for a nominal cost. Notably, ten new products based on the existing best-sellers are in the pipeline. A buyer will inherit them, adding further value to this acquisition.
That buyer has the opportunity to seamlessly step into a management role and benefit from the dedication and effort invested by the founder. The seller has gone through the necessary implementations to strengthen and improve all critical components of the business, positioning new leadership perfectly to elevate this brand to the next level.
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