This 14-year-old direct-to-consumer (DTC) eCommerce brand specializes in medical compression and orthopedic support products. With a focus on personal wellness, the company offers a wide range of private label and leading brand products. The business operates a highly optimized website and has a strong customer base with a 45% repeat customer rate and 500k subscribers. The operations are well-managed, with consistent sales and profitability. The marketing strategy includes digital marketing, SEO, email and SMS marketing, affiliate marketing, and retargeting. The company has a strong supply chain and efficient logistics in place. With opportunities for scale, such as enhancing SEO, expanding product lines, and selling on marketplaces, this business has significant growth potential. The asking price is $6,300,000, with a cash flow of $1,500,503, and gross income of $13,708,397. The business was established in 2009 and has a team of 7 employees.
The company has maintained consistent sales and profitability, with annual revenue of $13 to $14 million and adjusted earnings of $1,500,000. The customer acquisition costs are kept low, ensuring profitability from the first order. The business operates a hybrid inventory model, with 70% of merchandise stocked, 10% dropshipped, and the remaining 20% fulfilled through daily orders. The company has a 6,000-square-foot warehouse and a 3,000-square-foot office for customer service and shipping. Between 400 and 500 orders are shipped daily, with additional dropshipping inventory. The working capital requirements are low for a business of this size.
The business has strong relationships with suppliers, resulting in heavy discounts for inventory. The annual performance review by suppliers has always resulted in extended deals. The inventory turnover is usually 30 to 60 days, with low working capital requirements. The company ships between 400 and 500 orders daily from its 6,000-square-foot warehouse, with additional dropshipping inventory. There is room for growth and diversification of product lines.
MARKETING AND KEY METRICS
The company’s digital marketing strategy includes search and shopping on Google and Bing, email and SMS retention, affiliate marketing, retargeting, organic search, and prospecting. The primary target audience is females aged 55 to 75, with targeted promotions and brand-specific recommendations driving sales. Sales peak from October through January.
Sales are currently made exclusively direct to consumer (DTC) through the company’s optimized website. There is a significant opportunity to expand sales channels by selling on marketplaces like Amazon.com and retail stores.
The key metrics for this business include a 45% repeat customer rate, 500k subscribers, $13 to $14 million in annual revenue, $1,500,000 in adjusted earnings, and a lifetime customer value of $130.00. The customer acquisition costs are around 33% of the lifetime value.
The company has a strong customer base with a 45% repeat customer rate and 500k subscribers. The typical customer is a female aged 55 to 75 who purchases for a significant period. The initial order value is $75, and the lifetime value is $130.
BUSINESS MODEL & RESOURCES NEEDED
The owner primarily focuses on day-to-day operations, with 7 full-time staff working in customer service and shipping. An agency handles digital marketing and content development. The owner is motivated to assist in the transition and training of the buyer.
The medical compression and orthopedic support industry has a growing demand in the US due to increased interest in travel, exercise, and everyday wellness. This business caters to a price-conscious consumer base and effectively markets through targeted promotions and free shipping. The market is expected to continue growing with opportunities to expand into other health and wellness verticals.
OPPORTUNITIES TO SCALE
There are various opportunities to scale this business, including enhancing SEO, selling on marketplaces like Amazon.com, extending the product line, adding verticals within health and wellness, and enhancing the upselling and reselling strategy. The compression market is steadily growing in the US, providing ample growth potential.
Asking Price: $6,300,000
Gross Income: $13,708,397
Cash Flow: $1,500,503
Year Established: 2009