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Scaling eCommerce Brand with a 41% Repeat Order Rate offering CBD Derived Products for Topicals, Skincare and Pet Products

Website Closers® presents an eCommerce Brand that has performed exceptionally well in the field of Topicals and Skincare, Healthy Food offerings and Pet Products. The company cultivates high quality, outdoor grown and highly potent CBD goods, including CBD Edibles & Capsules, CBD Topicals, CBD Smokeable, CBD for Pets, CBD for Horses, and more.

These are massive industries worldwide, with the global organic skin care products market alone now projected to reach $17.40 billion by 2028. What makes this company unique is they market entirely in the niche field of Hemp Derived Products. Products extracted from CBD crude oil derived from hemp have become enormously popular since states began relaxing their laws against its use, and while CBD is a close chemical cousin of another cannabinoid, THC, which is what is used to get high, CBD doesn’t have any psychoactive properties. What it does have is early research indicating that it may offer significant therapeutic benefits for a wide range of medical conditions, which is why it’s available to buy as a fast-growing number of popular food and wellness supplements.

The global cannabidiol market is a rapidly growing one, valued at $2.8 billion in 2020, and projected to grow by a phenomenal 21% through 2028. The brand has enjoyed success with both DTC sales on its Shopify Website and on Amazon.com. They also have a small wholesale division. As their sales have strengthened, the company now enjoys a 41% Repeat Customer Rate for their more than 300 SKUs, which have a high average order value of $85 for DTC sales and a tremendous $5,000 AOV on B2B orders.

As a family-owned business, this company has used its own outdoor grown and high potency CBD to create a variety of products designed to boost the user’s mind, body and spirit. Launched 5 years ago, the company opened a manufacturing facility to create the kind of products they believed would help people feel balanced when life becomes overwhelming, and clear their heads when they feel distracted. This business specializes in creating proprietary formulations for all products sold under their brand. They now have 40 parent SKUS, and new products are being tested on a regular basis.

Supplements have become an enormously popular industry, used by millions, and this company has experienced their own success in this highly competitive field. Their CBD Gummies now make up 40% of all sales, followed by their CBD Tinctures at 30% and their CBD Oils and Topicals at an additional 15%. Sales are strong throughout the year, with no seasonal factors.

The customer base is diverse. About 30% of customers are between the ages of 24 and 34, and evenly divided between men and women. About 15% are either between the age of 18-24 or 45-54, demonstrating the wide appeal their products have. Sales are divided between their Shopify website, where 90% of the revenue is generated, and Amazon, which represents 10% of sales, and those numbers at Amazon are on the rise. Sales have been so strong that they now average 70 shipments per day, which includes 60 DTC shipments and 10 B2B shipments.

The company has 30 wholesale customers, and their B2B channel is growing. To boost these efforts, the company has been optimizing a Wholesale Landing Page on their website, developing a new Wholesale Catalog Landing Page, enhancing their email marketing campaigns (they have 12,000 wholesale subscribers in their email database) while reaching out repeatedly to local prospects. They are now exploring more than 500 new leads.

The brand has taken a truly multifaceted approach to marketing. SEO has been a major contributor. The company does on-and-off page as well as technical SEO, and they currently claim 34 top 3 keyword rankings, 77 top 10 rankings and 144 up and coming top 20 rankings. As the business has grown, the company now provides higher difficulty keywords that provide more impactful search volume, in particular through their educational and informative blog. They enjoy high web traffic with 30,000 visitors each month.

In addition to the blog, content marketing is employed in a variety of ways, including in social media posts (they have 5,000+ Instagram followers), and in their email marketing.  Their email database has more than 25,000 DTC customers and their regular mailers are used to solidify the company’s position as a trusted brand name. Their email list grows by an average of 1,400 new subscribers each month, which helps them engage with committed CBD consumers. Their social media marketing efforts include having a presence on Facebook, Pinterest, Twitter and YouTube which connects them directly with their target demographic. The company is also increasing its influencer campaign, working with 48 influencers across Instagram and Facebook. The brand also remarkets top performing content on videos shared on their website, social media channels and through display advertising.

There are some terrific options for scaling this highly successful operation. In addition to pursuing those 500 new B2B leads, the surest path to success would be to continue ongoing research and development on unique formulations for new topicals and food products. That SKU expansion would enable this company to effectively upsell to their existing customer base. The company could also increase its PPC marketing campaign and attend trade shows with an emphasis on finding additional B2B leads and contracts.

There is a large and experienced team in place that includes those in charge of production, sales, marketing, operations, quality assurance, logistics, content strategy, and finances, and 5 sales specialists. The company employs a freelance web developer and eCommerce coordinator and a shipping and receiving associate. The team has helped to create a seamless daily operation. All orders are shipped from their 5,000 square foot warehouse.

Because of the unique healing qualities that are increasingly being recognized in CBD products, the market for a wide variety of these supplements, skin care products and foods have not only experienced explosive growth, but is likely on a very sharp upward trajectory in coming years as new products get launched. This is an industry still in its infancy and its future looks exceptionally promising.

The same is true for this business. Their glowing reviews from customers who say the product worked exactly as promised demonstrates just how well they created their formulas and then marketed them to a highly receptive audience. This brand, too, may be in the infancy of a massive growth curve, one a buyer can help guide.

This eCommerce Brand Represented by:

Website Closers

Tech, Internet & eCommerce Business Brokers

Listing ID: WC2435

Asking Price
$ 2,650,000
Cash Flow
$ 576,266
Gross Income
$ 4,314,805
Year Established
2016
Employees
23

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