Website Closers® presents an eCommerce DTC and Amazon FBA Brand housed in the lucrative Dietary & Nutritional Supplements Vertical, offering a wide variety of superfoods, superfruits, botanicals, and herbs in powder or tablet form. This 11-year-old company now has a reputation for products that help to improve the health and well-being of their buyers. With a loyal fan base for their SKUs, the company is enjoying consistent year-over-year growth.
The business purchases bulk ingredients from reliable manufacturers in the U.S., and then repackages them. All products are sold under the company’s trademarked brand name. That catalog includes 2 products made from custom blends created in-house and manufactured specifically for this brand. The company is now in the process of researching additional new products that will help set this business apart from rival companies in a competitive field.
With an Average Order Value of $26, sales remain steady throughout the year and are not impacted by any seasonal factors. One of the company’s biggest strengths is a diverse and successful multi-sales channel approach. The business has a highly profitable Amazon FBA Storefront that now makes up 82% of their sales, and where they maintain a 4.8 Seller rating from satisfied customers.
The company also enjoys sales on its Shopify website, where its Repeat Customer Rate just shot up by nearly 30%, compared to a 16% jump on the Amazon store. The company also brings in sales from its eBay store, where it is ranked as a Top-Rated account, has a 15% Repeat Customer Rate, and has received 16,600+ reviews. Walmart and Etsy are also new stores for the fast-growing brand.
No single product dominates sales and at least 8 SKUs are among their top-selling items, with the biggest seller bringing in 14% of revenue. These products appeal to a wide group of customers between the ages of 25 to 65, and their customers are known for having incomes of $50,000 and higher, with plenty of disposable income to spend regularly on these supplements.
This is a highly lucrative vertical, with the supplement industry worth $140 billion and projected to grow by 8.6% through 2032. As more people around the globe recognize the importance of maintaining their health and view supplements as a convenient product to purchase online, this industry is poised for continued impressive growth. This company, with a solid foundation and high recurring revenues, is projected to do the same.
This business is a great opportunity for a strategic buyer to acquire it and scale it rapidly. There are multiple good opportunities, including by adding new proprietary SKUs that competitors don’t offer, which can be targeted as upsells to existing customers and a smart way to attract new buyers. The company could also launch a social media marketing campaign that includes partnering with social influencers to boost brand recognition and target B2B sales to retailers and wholesale accounts that stock nutritional supplements, a huge market.
Business Broker Takeaway
We are excited about this business for 3 important reasons:
1. Efficient Operations. One significant benefit of their Amazon store is the company takes full advantage of Fulfillment By Amazon for fast shipping and deliveries, and customer service. Today 75% of their orders are processed by FBA while the remaining 25% of orders get stocked in their warehouse for products sold through their website, eBay, or Walmart. The company is now processing up to 30 orders a day while maintaining $25,000 in inventory at FBA and an additional $5,000+ for their warehouse. This operation is so efficiently run that the current owner works as little as 4 hours per day, focusing mainly on acquiring products, preparing shipments for FBA, and replying to customer contacts. Certain tasks are outsourced or given to contractors, including using workers for receiving shipments and packaging. This is also a business that can be operated remotely.
2. Well-researched SKUs. Premium Superfoods are enormously popular today because they are nutrient-rich with clear health benefits. This brand’s SKUs have been certified as organic, non-GMO powders, which are dairy-free, soy-free, and 100% plant-based. These all-natural supplements are designed to provide daily fuel for the body to support mood, sleep, energy, and digestion. Other SKUs are designed to boost the immune system and keep away colds and flu viruses. These products are sourced from reliable manufacturers, mostly from vendors in the U.S. with a few imported from China. The company does extensive research on the kinds of products that are in high demand, and after recently developing its own custom blends, has been continuing to research new and innovative SKUs that customers are looking for.
3. Marketing Opportunities. To boost sales, the company has relied on PPC ad campaigns on its sales platforms, including running display ads, video campaigns, and targeted brand promotions. These campaigns have been effective but leave plenty of room for growth. The new owner could focus on using the company’s social media platforms for regular posts that drive up customer engagement. That could include the use of influencers on these platforms, and video marketing on sites such as TikTok and YouTube. In addition, an email database with 50,000+ subscribers is ideal for an email newsletter campaign, and a major opportunity for this business would be to have its website and Amazon shop fully optimized for popular SEO keywords. An educational blog on the website would expand their customer base even further.
Conclusion
As nutritional supplements and superfoods become more popular with the health-conscious consumer, this trademark-protected brand is staking out a stronger position in the field by developing its own custom brand products in-house and continuing to maintain a thriving Amazon store plus fast-growing sales on its Shopify website and eBay store. On Amazon, each product has its own reviews and ratings, and strong rankings.
For a buyer, the company’s stable recurring revenues, loyal customer base, and popular products open up plenty of opportunities for future growth, and the current owner is available to provide guidance during the sale to ensure the transition is a smooth one and that the business is positioned to scale. With a very healthy operation, the company is ready to become a stronger leader in this lucrative vertical.
