The target is a unique eCommerce Retailer in the Supplements Vertical that holds ZERO INVENTORY due to its highly attractive inventory model. Additionally, instead of focusing on Amazon.com, which represents less than 5% of the company’s current sales, and thus, a huge and immediate growth opportunity for the company, this Internet Company instead focuses on CPA, eMail and Affiliate Marketing to drive sales to the company’s multiple website domains. The company provides a number of direct response offers to a targeted crowd of baby boomers.
The products offered by the company help provide the baby boomer generation a chance of looking and/or feeling younger/healthier so they can remain active during the later stages of life. Products include Nutritional Supplements for tinnitus relief; metabolism support; anti-fungal for hair, nail and skin; thyroid health; colon cleanse detox; vision support; joint pain relief; hair growth; Keto weight loss; prostate health; stomach parasite flush; cell repair and more.
An exciting value proposition with this company is its inventory model: “drop ship”. This means that there’s zero upfront investment in inventory – all products are manufactured, stored and shipped by the company’s supplier. For the Supplements Space, this is extremely rare and offers ownership the free cash flow necessary to grow the business through marketing and other activities. With no inventory to purchase, R&D becomes a zero-cost game – simply work out a new product to be developed in conjunction with the supplier and begin marketing it immediately. No need to wait for inventory to land at the warehouse – no need for a warehouse. This also means that cash flow and profit are nearly in balance, since the company is strong from both perspectives.
Ownership has focused wisely on brand awareness and a focus on baby boomers, resulting in a powerful brand presentation that is ripe for additional opportunities, both at retail and wholesale. This business has a few performance factors that make it stand out from the eCommerce crowd:
1. ZERO inventory to invest in (low to no cash flow constraints)
2. Not an Amazon company – Amazon is a growth opportunity, but not a focus as of yet.
3. Low SKU concentration
4. Over 4 years in business and over $1.5M in Adjusted EBITDA
5. Strong Cash Flow versus most other Supplements Companies (higher distribution potential)
Thanks to the nature of this brand’s sector, its strong brand presence and ability to ROI right out of the gates due to a drop ship inventory system, this savvy retail business is ready to be taken to the next level. With growth knocking at the door and new product options readily available to keep the brand fresh and relevant for years to come, this is a fantastic opportunity to jump into a growing retail space in the supplements sector with a robust infrastructure immediately at hand.
