WebsiteClosers® presents a Nutritional Supplement eCommerce Brand that has developed a solid position in the profitable and evergreen Health & Nutrition Field with its proprietary products that are designed to help improve blood pressure, weight, gut health, and more.
Their fully trademarked and 100% proprietary products are made with all-natural ingredients and scientifically tested. The company is growing in just about every known industry KPI, including in the glowing reviews customers are touting associated with product efficacy. Not only are those customer testimonials serving as one of the brand’s strongest marketing tools, but they have delivered thousands of monthly subscribers, which continues to grow over time. Thanks to the trust their customers have in their SKUs, the Brand has enjoyed 100% Year-over-Year growth for the past 4 years and expects to get the same result by the end of 2024.
All their 11 SKUs are fully branded, and the company is now selling 1,200+ bottles a day. The company has effectively marketed these products on its Amazon storefront, which now makes up 61% of sales, along with its branded website, and more recently on eBay and a TikTok Shop. Their products have developed a reputation for being healthy and pure, backed by case studies on their effectiveness. Customers are becoming more loyal over time, giving the brand 6,200+ active Amazon subscribers and nearly 4,400 on their website. The average length of each subscriber is about 6 months or longer.
That loyalty brought their Repeat Customer Rate up to 30%. With an Average Order Value of $56, their Lifetime Customer Value has skyrocketed to a much higher $347, as new customers continue to discover them.
This company is operating in an enormously lucrative and evergreen vertical. Sales of health supplements are strong globally, with profits projected to surpass $230 billion by 2027. Most of the world’s population is now or has used nutritional health supplements, which are popular since they’re reasonably priced, readily available at local stores or online, and can be purchased without a prescription.
This business represents a clear opportunity for a Buyer to acquire this company and scale it rapidly by continuing to develop and release new products (the company now has several new supplements in development), launching an Influencer Marketing campaign to build even stronger brand recognition and be expanding to B2B sales targeting wholesale accounts.
Business Broker Takeaway
Our analysis of this business shows that the value propositions present are strong for a first-time buyer looking to get into the online space. We are excited about this business for 3 important reasons:
1. Unique Proprietary Products. A significant benefit for the new owner is that these popular SKUs can only be purchased through this company. The brand has built up a tremendous amount of credibility since its scientific studies demonstrated how effective the products would be. Customer testimonials bear that out. With great product ratings boosting this brand, its reputation has gotten stronger, which is driving sales higher. While their products address numerous health issues, the focus has been on blood pressure support, and those SKUs remain their top sellers. The company continues to research and develop new products, introducing one for prostate care that was rolled out last spring. This supplement sold out all 5,000+ units within three weeks of its launch.
2. Experienced Team in Place. An experienced and professional team now handles daily operations, including a fulfillment manager, two customer service representatives, an email marketer, a web designer, and a packing employee. As a result, the current owner often works no more than 20 hours per week running the business, focusing on managing relations with their suppliers. The company has team meetings once a week and is known for its superior customer service and attention to the needs of its buyers. The new owner can take full advantage of this team’s skill and professionalism to focus on growing the business.
3. Expanding Sales Channels. While sales started strong on the company’s Shopify website, the decision to expand and open an Amazon shop proved to be a very shrewd and profitable move. Today 61% of the company’s sales are on Amazon, compared to 33% for the Shopify site. That successful expansion encouraged the company to launch new stores on eBay and TikTok, where sales are starting to grow. The company also has the potential to expand into B2B sales and target its SKUs to wholesalers, big box stores, and any other retailer that stocks nutritional supplements. Since supplements remain one of the most popular health products on the market, that’s a major opportunity for the company.
The Company
Launched in 2019, the company quickly set itself apart from competitors by developing supplements manufactured only after careful research and using natural, everyday ingredients that blend together to lower blood pressure and improve physical health.
Sales quickly picked up on their Shopify site and then took off on Amazon. They now sell 300 products a day on Shopify and 700 a day on Amazon, and sales remain steady year-round and are not impacted by seasonal factors. Buyers who recognize the effectiveness of their products have become loyal subscribers.
The company has strong relations with its four third-party manufacturers, and all products are custom formulations made according to their specifications. To keep up with demand, the company maintains 3 months’ worth of inventory at all times and uses Fulfillment By Amazon for fast and convenient shipping.
Marketing has been one of the company’s major strengths. Sales on Shopify have increased 300%, and on Amazon are growing 10% higher month over month. Their most effective digital marketing tools have included PPC ad campaigns on social media sites such as Facebook and TikTok, posting three educational and informative blogs on their website each week, and having 125,000+ email subscribers and 45,800+ SMS text message subscribers to target. The result is that the company is adding 1,000+ new email & SMS subscribers every day.
With supplements remaining in high demand today, this company’s proprietary products are a great example of how to succeed in this profitable vertical. With a loyal customer base, rising subscription rate, and an experienced team in place, the new owner should have no trouble finding creative ways to scale this business quickly.
