The target is a branded eCommerce retailer in the Nutraceutical (Vitamins & Supplements) Health & Wellness Space, selling direct to customers by way of its organically ranked Amazon FBA Seller Central Account and a branded, fully integrated Shopify Website. The company focuses in multiple niches within the category, including Supplements for Fertility, Digestive Support and Kids, Teens and Adult Probiotics.
Boasting excellent seller feedback on the Amazon Platform, as well as multiple Amazon’s Choice Badges for many keywords associated with the products sold by the company, this is a turnkey online retailer in the highly sought after Supplement sector. The company has achieved very low overhead by utilizing the Fulfilled by Amazon (FBA) model, and great margins thanks to an attractive $20-25 average ticket price.
Founded in 2016, this Internet Company is posting TTM Sales of $667,000 with TTM Earnings of $224,000 for an impressive 33% Net Margin and YTD sales growth at 164%. It comes with completely branded and trademarked products in a high demand sector that is ready for scale. The company has only touched the surface of where it can go in this sector – it will make an outstanding addition to any existing eCommerce retail portfolio in the vitamins / supplements space, and offers the fast-paced entrepreneur of any skill level an opportunity to step into the business and begin scaling it in the near term.
Thanks to its streamlined, low-maintenance model, very little time is necessary to run this business as-is. The company has dialed its focus into a well-executed lineup of 8 high-volume SKUs, with ample space available for additional SKUs not yet on offer from its existing suppliers.
The company does not require warehouse space, since all inventory is placed with Amazon’s FBA warehouses as well as those of its suppliers. This allows a new owner a great deal of flexibility from both a location and scale perspective. The company can be operated from any location, and by not having the overhead, capital expenditures or other headaches of a warehouse, the new owner can focus on scale.
Regarding scale, this Internet Company can be further developed in a multitude of ways, almost immediately following acquisition. These include expanding the company’s own eCommerce website (and developing a broader SEM plan accordingly), expanding product and lines already available via current suppliers, and growing the company internationally by using Amazon’s FBA warehousing located around the world. Additional opportunities include the development of wholesale distribution, a retail arm and more social media engagement.
The value propositions for this company are clear:
– Branded Line of Products – removes the potential for buy box competition present with those sellers that sell brands of other companies. The result is lower competition and higher margins.
– Well Defined and Attractive Branding – Trademarks and prevent competitors from using their designs and adds credibility.
– Product Development – Use existing vendors to immediately add additional products in the same and adjacent categories.
– Amazon PR Value: Branded products on Amazon promote the brand across the Internet due to the page rank power of Amazon. Use this to your benefit to build out the brand across the Internet to pull sales into the Shopify store.
This company has everything smart entrepreneurs, investors and lenders are looking for in an M&A opportunity: a Branded, Trademarked Product Line, Great niche (Supplements), Highly Scalable and Clean Numbers.
