WebsiteClosers® presents a Natural Wellness Brand. Launched a decade ago, the company has demonstrated enormous skill in marketing its comprehensive line of natural healing supplements to both a devoted DTC customer base and an even larger number of B2B sales to retailers and wholesale accounts. With products designed to help people along their wellness journey, their customers like what they’re getting and believe the company is helping them and boosting their health. This has given the company an impressive 48% Repeat Customer Rate.
Their B2B accounts also get a boost from the company’s In-House Franchise Program, which allows entrepreneurs to open their own store marketing this brand’s comprehensive line of in-demand wellness products. This approach, and the appeal of the company’s products that include pet supplement treats, has given them a number of high growth wholesale accounts.
Sales remain healthy throughout the year at an Average Order Value of $79, and no single product dominates sales. The company has its products manufactured by 10 trusted and reliable suppliers, based on their custom formulations, and their diverse product line includes gummies, oils, lotions, lip gloss, and cat-and-dog treats, something for every possible customer demographic.
Their DTC eCommerce sales are 36% of total revenue, just below the 38% of sales that go to other retailers, and a growing 26% are for their wholesale accounts. The company is now processing 15+ orders a day on average and maintains up to $140,000+ in inventory to keep up with demand. There is a massive amount of Total Addressable Market for a new owner to scale into, especially one that prefers to take a more hands-on approach to the business since the current owner spends only 1 hour monthly on this business given that there is a full team in place to manage operations.
The business also maintains several company-owned retail stores, although eCommerce has become a more significant part of its revenue stream since it reaches a much wider market. With the company’s long track record, the business has cultivated some of the deepest connections in the natural healing niche, which is why other retailers and wholesalers trust them and their products to be high-quality, effective, and made using ingredients from highly reputable suppliers. The fact that this company holds itself to the highest possible standards has significantly boosted its brand recognition in this fast-growing, immensely profitable vertical.
The company has successfully marketed itself through an educational blog on its website that gets updated regularly, and an email newsletter. But there are plenty of other untapped digital marketing tools that would likely send profits soaring.
There are plenty of clear opportunities for a U.S. Buyer to acquire this company and then scale it quickly. That could include implementing a new digital marketing strategy, expanding the company’s influencer network, creating more franchise opportunities, and beefing up the company’s manufacturing capacity to meet larger bulk orders to wholesalers.
Business Broker Takeaway
We are excited about this business for 3 important reasons:
1. Excellent Reputation. This business was founded by people dedicated to promoting the health benefits of natural wellness products. Understanding the natural benefits of their ingredients, their mission to provide safe and affordable products has given them a very loyal customer base and contributed to the brand’s high Repeat Customer Rate of almost 50%. This has also given the company plenty of 5-star reviews from satisfied customers and keeps sales coming in at a steady pace throughout the year. Retailers and wholesalers have picked up on that, which is why the company’s B2B orders are growing so quickly.
2. Solid Operations. It isn’t just the customers who love this business. The company maintains an experienced and skillful team that manages daily tasks, and many of these devoted staff members have been with the business since it first launched. The company is so efficiently structured that the business practically runs itself, and the current owner works as little as an hour per month operating it. This team has been quite adept at customer service and keeping up the steady flow of new orders, since the business ships online and wholesale orders 5 days a week.
3. Marketing Opportunities. The company’s email newsletter is sent out to 60,000+ subscribers, which contributes to upsells and increased customer loyalty. The same is true of the company’s blog, which is also providing them with a major boost to its organic traffic. The company spends virtually no money on advertising. However, a more advanced digital marketing plan would significantly increase sales. That could include paid media campaigns on Google, a more aggressive content marketing strategy on social media to boost customer engagement, and video marketing on popular sites such as TikTok and YouTube, all proven methods for scaling a business quickly.
Conclusion
Launched in 2015, the company has been riding a wave of popularity related to its natural healing products. A buyer can acquire this business with the added, immediate advantage of a well-established brand with a reputation for excellence, a devoted customer base, and sharply rising B2B sales. With clear scale opportunities available to this one, a new owner will find that the company’s high recurring revenue and reputation within the industry makes this a solid lasting investment.
The company now enjoys positive cashflow and has the inventory and equipment that is in good working order and will be transferred with the sale. This is a profitable business operating in a high-growth sector, ideally positioned for much larger sales growth.
