Website Closers® presents a thriving Dietary Supplements Brand for Humans and Pets that has spent nearly a decade cultivating a loyal customer base on their Amazon Storefront and their Shopify website. With popular products designed to boost the customer’s immune system, this eCommerce company is viewed by customers as having raised the standard for dietary supplements derived from natural products, and their customers have responded not only with terrific 5 Star reviews, but also become committed repeat buyers. Their Repeat Customer Rate on their Shopify site has soared to 41%, and on their Amazon platform, it is 35%.
Customers clearly appreciate the quality of their supplements and the effects they have on their health since so many of their sales now come from active subscriptions (annual recurring revenue). This company is known for its fully branded and proprietary products, manufactured directly for them, and they are operating in a high-demand vertical that tends to be sticky … once a customer purchases your product, if they feel like it’s working, then they will continue to buy it going forward.
The Industry.
The supplements industry is worth $140 billion and is projected to grow by 8.6% over the next five years, with particularly strong growth anticipated in North America and Latin America. Ever since the pandemic, people across the globe have taken a stronger interest in maintaining their health and their immune system, and supplements that can be easily purchased online and without a physician’s prescription are enormously popular.
The Company
This brand markets its supplements for an Average Order Value of $27 on their Shopify site and $24 on Amazon, giving customers an attractive price for products they take on a regular basis with repeat customers coming back an average of 3.6 times per year.
For a buyer, this company has the added benefit of steady recurring revenues and excellent customer demographics – educated women in their 20s, 30s, and 40s with high disposable income. A new buyer has the added benefit of this company being highly automated. The current ownership spends as little as one hour per week running it.
The company was founded in 2015, to bring new supplements to the market that would be more effective than what was already on the shelves, by using three key premium ingredients: Vegetarian, Gluten-free, and Non-GMO, as well as avoiding artificial fillers.
From the start, the company as put an emphasis on compliance with all supplements 3rd party lab tested by ISO17025 accredited laboratories, FDA label compliance reviews, and custom manufactured exclusively in the USA (New Jersey and California). Their formulas are entirely proprietary, are within strict California Prop 65 limits, and clearly support immune health.
The company has expanded, and in addition to providing supplements that can help the men and women purchasing their SKUs, the brand also markets supplements for their pets. With the pet supplement market having grown to $1.91 billion in 2022, this has proven to be a smart and innovative approach.
Having grown to 23 SKUs and nine core products, sales are not impacted by seasonal factors and do well year-round. Their customer demographics are excellent, as they attract buyers in every age group from 18 to 65 and older. The largest percentage of their sales, 24%, come from customers in the 25-34 age range, and they market to both women (63% of sales) and men (37%).
Today the company has sold more than 10 million capsules to 60,000+ customers and benefits from the support of a team of industry experts who work with them to ensure high-quality standards and full compliance with government regulations.
Operations
The company operates on multiple sales channels, with 87% of sales now stemming from Amazon and a rising 12% on the branded website. More recently, the company expanded onto Walmart and specialty online retailers such as Kroger, Wish and Bonanza.
While Amazon – where they operate on Seller Central and take advantage of Fulfillment By Amazon for fast shipping and deliveries – remains their central cash cow for the moment, the company has created a highly turnkey operation that doesn’t require much daily input from the current ownership, who often works as little as one hour per week on this business.
Outside of checking inventory levels at FBA, responding to customer service emails and sending out a monthly newsletter, most other tasks are handled by Amazon, and the company has no full-time employees. The company does use contractors for some design work and to oversee social media accounts and the content for the newsletter.
With so many regular subscribers and repeat customers, the company always maintains up to 6 months’ worth of inventory to keep up with demand.
Marketing
Digital marketing represents a huge scale opportunity for this company, which has relied on PPC ads on Amazon to help drive sales.
In addition, with an email database containing 6,800+ subscribers, their newsletter has become an effective way to keep customers aware of the benefits of their products and to promote upsells.
The company also has a popular social media account on Facebook with 3,200+ followers, and the organic traffic from those posts helps drive 3,800+ unique monthly visitors to their website.
That gives the company plenty of opportunity to keep growing with additional digital marketing tools, which could include video marketing on TikTok and YouTube, an influencer marketing campaign on their social media accounts, and an SEO program on their Shopify site.
To millions of people, Supplements are like morning coffee – something they use daily. When those supplements give them results, they become loyal and faithful customers. This brand has demonstrated they know exactly how to provide the supplements people are eagerly looking for and transform those first-time buyers into ones who enthusiastically subscribe to their products.
This is a business that requires no special skills on the part of a buyer and is so highly automated that it runs itself. With high recurring revenues and a nearly decade-long track record, this is a phenomenal opportunity for a buyer to get into a highly lucrative field.
