Website Closers® presents a Consumer Products Goods Company that has built 2 In-House Brands that offer a wide variety of Nutritional Supplements, Oils, and Superfoods via multiple, Branded DTC Consumer Websites, Amazon, and Wholesale via a dedicated wholesale website.
Due to tight work schedules and evolving lifestyles, the working population worldwide is finding it difficult to meet daily nutrient requirements, which is predicted to be a significant driving factor for dietary supplements. The market is anticipated to be driven by rising reliance on supplements to meet those needs due to their high level of convenience. The sector is expanding rapidly as more individuals become aware of the value of including nutritional components in their diets. This company is proliferating well beyond the industry norm.
Operations
The company is well-known among consumers and businesses alike, offering reliable products across a wide variety of health-focused verticals. It has developed into one of the industry leaders in its space and draws thousands of unique visitors monthly.
The business started out on Amazon almost 5 years ago, where they maintain a successful storefront today. In addition, they also sell direct-to-consumer via multiple Shopify Websites. Finally, they also maintain a strong wholesale program that can be expanded broadly in the coming years with just a little marketing effort.
The business has a well-rounded product portfolio of 152 offerings with no significant sales concentration on any one item. Core product offerings include:
- Coconut Oil
- Coconut Water Powder
- Coconut Cream Powder
- Chlorella Powder
- Chlorella Tablets
- Living Silica
- Spirulina Powder
- Papaya Seed Capsules
The 2 brands operated by this business do have highly popular SKUs, including proprietary hydration and super green blends.
Supply Chain & Customers
The company buys products from multiple suppliers and purchases organic, sustainable, and all-natural products whenever available. Many are locally sourced in the US, while others are from as far afield as Taiwan. By using large importers and manufacturers, the company receives excellent pricing. All products are made specifically for the business’s brands and sold under those brand names.
A predominantly stock inventory model is used, with 92% of merchandise housed at 3PL partners, and Amazon warehouses. The remaining 8% is sent to FBA facilities.
Between $450,000 and $500,000 of inventory is maintained, equating to two months of sales. Orders are placed as necessary on terms ranging from 15 to 45 days net.
The typical customer demographic is broad. 70% are female between 25 and 55. They are interested in health, working out, yoga, eating clean, and the traceability of products they consume.
The business experiences no to low seasonality in sales, providing consistent cash flow and simplicity in inventory management all year long.
Owner & Staff
The owner runs a lean operation focusing primarily on team management, logistics, and new product development. Employees include a virtual assistant, graphic designer, and customer service agent. Storage and fulfillment, PPC, and design are outsourced.
Marketing
The company has done little marketing and therefore has an abundance of scale opportunities.
Implementing an aggressive social media marketing strategy will significantly boost traffic and sales. The brands can create fresh content, ads, and videos on Facebook, Instagram, and TikTok profiles. Partnering with influencers on different platforms can also deliver large returns for the brands.
Additionally, engaging with followers promotes UGC for free exposure. New, unique traffic will facilitate visitors to the website, increase conversions, and subsequently improve revenue.
Pinterest and Google are also excellent channels to explore for marketing. Moreover, an SEO program would boost organic traffic to the site. Management should capitalize on its extensive database of around 40,000 email addresses, including D2C and wholesale customers. Nurturing the database with regular updates, specials, product launches, and interesting content builds brand loyalty, keeps the company front of mind, and can dramatically boost sales while reducing customer acquisition costs.
Affiliate advertising presents another fantastic opportunity. Given the brand’s loyal customer base, it could encourage happy clients to become affiliates for a cost-effective digital marketing method.
These endeavors can all be managed in-house or outsourced to agencies or contractors with minimal effort but potentially vast remuneration.
Additionally, subscription services in this vertical can prove highly profitable. They build customer retention, loyalty, and consistent cash flow while introducing customers to new and exciting products, bringing them back to the site more regularly. Like successful email marketing campaigns, but to a more considerable degree, they reduce customer acquisition costs, immediately improving the bottom line.
