Website Closers® presents an eCommerce Brand in the Skincare segment, focused on providing relief products to the 7.5 Million Americans that suffer with Psoriasis. The company offers a wide variety of Dermatologist Developed, OTC products to help alleviate the pain and suffering associated with the painful and itchy rashes that Psoriasis sufferers contend with. These products currently include Soap, Creams, Shampoos & Conditioners, and Supplements. Many products are also offered in bundles.
The most truly remarkable thing about this growing company is its customer loyalty – they are achieving a 60% Repeat Order Rate from their customer base. This Monthly Recurring Revenue is valuable to any acquisition, but even more so in this business since the products are evergreen in nature and offer an easy opportunity to cross-sell new products in the future.
The Brand is enjoying 85% year-over-year profit growth. The company operates successfully on the Amazon.com marketplace, which still represents the vast bulk of their sales, but they also have products on Walmart and iHerb, the latter of which is focused on Wholesale. The business also recently diversified its sales channels onto CVS so this can potentially be a huge revenue boost in the future. DTC Sales on the Website and CVS are rising to create a better mix of sales channels.
Amazon has also enabled the company to take advantage of another significant growth tool: their Subscribe & Save program. Customers who come to appreciate the health benefits of a skincare treatment quickly become long-term customers, and this company has been attracting a rising number of long-term subscribers for their SKUs. At an Average Order Value of $40, sales continue heading higher.
There is a massive industry for products that alleviate dry skin, rashes and related conditions. Psoriasis is an autoimmune disease impacting the skin, and an estimated 125 million people around the world are coping with it. It impacts both men and women and can start at any age. While there is no cure for the condition, there are treatments that help control the symptoms.
Those treatments, including the one provided by this company, are in high demand among people who have this and related skin issues. The global psoriasis treatment market was $26.37Bbillion in 2022 and is projected to grow to $47 billion by 2029, an 8.7% growth rate.
This company’s rollout of additional products and sales platforms bode well for their future growth. They are already enjoying strong recurring revenues that should make this acquisition a very appealing one to a buyer. Delving deeper into their track record will help illustrate that.
The company’s founder was its first customer.
This Brand was launched nearly 4 years ago by a founder who not only had skills at creating successful eCommerce Brands, but was coping with psoriasis as well. Their main product was originally developed by the founder’s spouse, who is a dermatologist. The treatment did not contain the kinds of side effects that the founder had endured from other treatments, and it was quickly clear they had a strong product ready for the global market of psoriasis sufferers.
The treatment formula was placed in numerous products, including bars of soap, creams, and shampoos and conditioners, and strong initial sales enabled the company to expand to additional supplements, including multivitamins and multipack bundles. Those products contain ingredients that treat inflammation and breakouts for people who have suffered the effects of psoriasis.
All products are manufactured for this brand in the U.S., with their soaps, therapeutic shampoos and moisturizing creams each making up about a third of total sales. Customer reviews on Amazon are highly enthusiastic, with customers praising the products for providing enormous relief for their symptoms, and they are happy to recommend it to others.
Their sales remain steady throughout the year, although sales are higher in the colder months when skin conditions can flare up in the dry weather.
Their sales channels have expanded.
Because people tend to continue buying products that address health conditions, this company has performed exceptionally well through Amazon and its Subscribe & Save program. They now have 3,000+ subscribers on Amazon, offering a buyer an appealingly high rate of recurring revenues, and their Average Order Value on subscriptions is higher at $50+. The subscriptions on Amazon are driven by multipacks that mix and match products and deliver them in bundles.
Amazon also serves the company well since they rely on Fulfillment by Amazon (FBA) for fast and reliable shipping and delivery, enhancing their reputation for strong customer service and being there for all shoppers that prefer Prime 1- or 2-Day shipping, to waiting.
The company’s decision to diversify its sales channels has also paid off. Their Shopify-Built website already has 225+ subscribers and those numbers are rising. The company has since expanded to three additional sites, CVS, Walmart and iHerb, and the company is now working to boost online traffic to those sites. Their iHerb platform is for wholesale accounts, another area of business that the company is working to grow and expand.
To drive sales higher, the company has relied on PPC ads on Amazon and Walmart, and an email marketing campaign that uses the company’s large email database of 30,000+ subscribers.
The company also maintains an SEO program that includes an informational and educational blog on their website focusing on psoriasis awareness, and these marketing tools are helping to bring more viewers to their sites since they now average 4,600 unique monthly visitors.
This business is not a major time commitment.
Highly turnkey, the current ownership spends less than 10 hours per week running this company, focusing on tasks that include ensuring there is enough inventory to keep up with orders, sending products to Amazon and Walmart, and monitoring their seller accounts.
The company does not have any employees but will sometimes bring on temporary workers if there is a busy outbound shipment week.
The company typically stocks about 70 days’ worth of inventory at Amazon, and while the current ownership operates out of an office, this is a business that could easily be managed 100% remotely.
With such a well-oiled and highly automated business, a buyer has an opportunity to scale quickly by putting a stronger focus on digital marketing, including on social media marketing. This company already has 8,000+ followers on Facebook and an additional 3,500+ on Instagram. Increased marketing on these channels, plus video marketing on YouTube and TikTok, would help grow the company’s base substantially.
The company could also focus more of its marketing on their wholesale accounts and target pharmaceutical retailers across the country, as they grow their product line and expand into new skin care products.
Contact Website closers today to get more details on a company that’s demonstrated it has a solid footing in the enormously lucrative field of skin care.
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