Website Closers® presents a 7-year-old professionally managed eCommerce brand that has found a healthy following in the Ingestible Essential Oil niche. Despite requiring a low time commitment from their owner, they are high-performing and enjoy consistent sales on their key Amazon platform. They have won many of their customers over by being one of the few companies in their market that offer high-quality, USDA organic, food-grade oils that are safe for consumption, and by having an established USDA-certified facility in place.
They have hit their stride on Amazon US, establishing themselves as a respectable presence in their niche. Their success, along with the promising opportunities available to them, can be better understood by taking a look at some of the incredible qualities they have to offer.
The industry that this company is based in has facilitated their strong growth and consistent sales through the Amazon FBA platform. The organic demand for their products is so strong that they have required relatively minimal marketing initiatives to market their products, and have, especially on Amazon, cultivated a loyal customer base that eagerly enjoys what they have to offer.
They see great ad conversion rates on the few products they promote through PPC campaigns (Sponsored Ads), which reflects upon the deep understanding the brand has of their target audience’s preferences. The careful thinking they put into their marketing strategy ensures that every advertising dollar is put to use for a strong return on investment (ROI), and could be applied to the rest of their portfolio for promising results.
The brand has a solid financial foundation, which can be chalked up to their excellent working capital model. By prioritizing US-made products, they have gained the advantage of shorter lead times while also sharply reducing any vulnerabilities tied to an international supply chain. Additionally, by domestically sourcing their products, they have avoided the common pitfall of managing excess inventory, which leads to healthy cash flow and financial stability.
The company boasts a remarkably low return rate, which, outside of showcasing the premium quality of their SKUs, also gives insight into their commitment to reaching and exceeding customer expectations. Their dedication to pleasing their audience has meant a strong level of customer satisfaction and trust in the brand.
They have skillfully managed their production and distribution expenses to optimize profitability, to the point of keeping their cost of sales below 20%. Their clever planning has also meant that they are still able to offer competitively priced products to their customers.
The raw materials that the company uses are exclusively sourced from trustworthy suppliers in the US and Canada. Their products are USDA-certified organic, 100% pure, tested, and bottled in the US, and are run through a rigorous quality assurance process. This process involves purity checks, potency verification, and comprehensive tests for integrity, organoleptic properties, microbial content, GC/MS, as well as heavy metal and steam distillation. Not only that, but the brand also happens to be a proud member of the Amazon Climate Pledge Friendly program.
Though the company sells primarily off Amazon, with this sales channel accounting for 95% of their total revenue, they have expanded with a Shopify storefront and listings on Walmart.com and eBay. They have an impressive 4.7-star rating on Amazon, boast multiple Amazon Choice badges, and have maintained a positive feedback rate of over 95% throughout the past year.
Their products are all sold under a trademarked brand name and are sourced from suppliers with whom the current owner has built a strong relationship. They order new inventory on a weekly basis, with the goal of having roughly a month’s worth of stock on hand at any given time.
They typically use Fulfilled by Amazon (FBA) to handle customer orders, though, in the event of stockouts at these facilities, the company uses FBM. For these situations, a capable team at their 2,500-square-foot warehouse can process up to 50 daily orders. This warehouse, which is currently on lease, is available for the buyer, along with its dedicated staff: a full-time warehouse manager and an assistant working as a contractor. As the current owners handle operations remotely, the buyer will be able to run the business from wherever is convenient for them without disrupting operations.
The owner needs a mere 1 hour every week to run the business, with their key task consisting of observing sales and advertising. His wife is responsible for ordering and customer support.
When new products are ready to launch, an offshore assistant uses Adobe Photoshop and Illustrator to create labels and product images for them. If the buyer wishes, this process can easily be outsourced to a graphic designer for a nominal cost. The company already has ten new products based on the existing bestsellers waiting in the pipeline, which the buyer will be able to release for quick profit.
The new owner will face little challenge slipping into the role of management, and be able to enjoy the results of all the work that the seller has put into the brand over the years. The seller has also implemented different strategies to strengthen and improve the critical components of this acquisition, priming this brand for an upward trajectory post-purchase.
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