Website Closers® presents a successful eCommerce company that has created a profitable position within the niche space of Health Care Supplements. The global nutritional supplements industry, valued at $151.9 billion in 2021 and growing by 8.9%, is enjoying continued success among consumers looking to increase their lifespan, stay healthy and feel better. And now that these products can all be evaluated and purchased online, re-ordering is also much easier. Most supplement companies, like this one, enjoy strong repeat order rates due to the ongoing nature of taking supplements.
The company specializes in the nice field of Probiotics, and quickly developed strong DTC and B2B sales over the past 14 years. The high volume of sales has enabled them to expand to 75 active SKUs, and they enjoy unlimited scale options through their distribution network. Today they are a globally recognized brand, and highly enthusiastic reviews from their customers have turned many of them into repeat buyers – so much so that they now have a huge 45% Repeat Customer Rate.
The Company has been evaluated by our Lending Partners and has been pre-qualified for a business loan to acquire the company. Qualified buyers can enjoy a 10-year amortization period, a low 10% down payment, and strong commercial interest rates.
The company is operating in a very lucrative vertical. The global probiotics market was valued at $58 billion in 2021 and is projected to grow by 7.5% through 2030, driven by increasingly high consumer demand for supplements that promote preventative care and can boost their immune system. The health benefits of probiotics have become clear through medical studies, and consumers leading busy lives want the ability to easily access products that serve as immune system boosters.
That’s why this company has such a tremendous reputation in the probiotics niche space and is enjoying $1 million+ in revenue each year.
The products being sold were invented by an award-winning microbiologist, and they are branded and sold under a perpetual licensing agreement through the exact match domain the company controls. Character mark, design, slogan, labels, physical products, and verbiage are all licensed and protected, making this an enviable opportunity for a buyer to acquire a business that is reputable and stable, has grown in strength to become one of the market leaders in its niche, and is attracting thousands of unique visitors every month.
They have an ideal catalog of SKUs, with no drastic concentration of sales on any given item besides the two wildly successful flagship products.
Their wholesale accounts are solid. The business was built on its main product line, and it has subsequently included additional products on various online storefronts. This brand has consistently made a name for itself with print and television appearances that have been running for more than a decade, while their email subscribers provide them with opportunities to introduce new projects and enjoy upsells to their existing customers.
As a result of their marketing, this company receives more than 10,000 unique average visitors monthly to its DTC eCommerce storefronts.
Since the probiotics industry continues expanding on a global basis, this company has enormous growth opportunities moving forward, added to the fact that consumers are becoming far more health-conscious in general. The sector’s growth is explosive as more and more people realize the importance of healthy diets.
This company has consistently maintained year-over-year growth with little investment in paid marketing. Most of the website traffic and sales originate from their existing customer list, a direct online search for the brand, and residuals from the supplier’s marketing and promotional efforts. The website domain has recently been converted into an exclusive, perpetual, royalty-free, worldwide, and fully transferable license from that supplier.
The exclusive agreement and partnership provides a unique opportunity for the business to benefit from its supplier’s corporate product marketing initiatives, favorable bulk pricing below wholesale, and access to retail and wholesale customer leads. In addition, they enjoy the benefits of $2 million in annual advertising without having to cover any of it.
Their typical D2C customer today is health conscious, between 18 and 54 years old, and split evenly between genders, with 54% of sales to men and the remaining 46% to women. They spend on average $114 and order frequently. Approximately 80% of the business is retail and 20% wholesale.
The company utilizes a 100% stock inventory model. A centrally located U.S. 3PL currently processes order fulfillment and is based in close proximity to the supplier, which provides fast inventory replacement and quick shipping throughout the U.S. In addition, the logistics company offers competitive pricing and fulfillment services.
The business is well-oiled operationally and does not require an extensive workload. The owner spends around 25 hours weekly on the company, focusing on:
Additionally, an operations manager handles almost all day-to-day tasks and is willing to stay with the new owner. A part-time nutritionist helps answer customer queries and provides professional advice as we respond to client emails and phone calls – she is also available to continue on with a new owner and has been with the company for a number of years.
There is an immense opportunity for a new owner to scale the operation. Some of the many methods available are mass retail, enhancing email marketing, international expansion, affiliate and performance-based marketing, and subscription models.
A buyer with an established sales network can take this company to new heights through this channel, while one with other skill sets can steer the business in their chosen direction.
This business has the history, systems, customer loyalty, and licensing agreements that are beyond enviable, so it’s an enticing proposition for an ambitious buyer to scale the company quickly and vastly.
This is an opportunity of unmatched caliber in the segment, shipping directly to the customer through highly established and exact match domains.
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