Home Fitness Brand w/ $35,000 Monthly Visits & $61 AOV
This eCommerce DTC brand sources and sells home fitness equipment to health-conscious consumers. The company offers easy-to-use alternatives to expensive gym memberships and is ideal for home workouts or those on the go. They have built a brand with a loyal customer base, and their products have high customer satisfaction rates. The global fitness equipment market is valued at $11.6 billion, with an expected CAGR of 3.3% through 2028, offering enormous growth opportunities. The business is highly automated, with minimal day-to-day operations required. The main marketing channels are Facebook and Google ads, with influencer marketing yet to be explored. The brand has significant scale opportunities through expanded product lines, launching on popular eCommerce sites like Amazon, and establishing a wholesale program.
OPERATIONS
The business is highly automated, with the owner spending only 10 hours weekly on the business. Tasks include managing advertising, social media, and growth strategies, while the owner’s wife manages customer service, packing and shipping replacements, and financials. The purchasing, distribution, sales, and day-to-day operations are easily taken care of and offer a potential buyer the joy of seamless and stress-free integration. Up to 50 orders are being shipped daily from the three 3PL warehouses around the US, set up that way for fast delivery.
All products are sourced and produced in China. They have a relationship with the supplier in China, and all products are sold under their brand. The company stocks around 4,000 units in inventory in their 3PL warehouses around the US, set up for fast delivery.
MARKETING AND KEY METRICS
The company puts a strong focus on Facebook advertising, which makes up much of their PPC spend, and has provided a ROAS of 3.5x over the lifetime of the business. Additional traffic is driven by Google ads, with a 3.7 ROAS. As successful as the business is, they have not yet tapped into the industry’s colossal influencer marketing opportunities on Instagram and TikTok. Both options have shown a great return on investment with focused campaigns and work wonderfully in this market.
The company’s main sales channels are through their website, Facebook, and Google ads. The brand is now expanding its marketing efforts to Australia and the UK, which will drive sales further. They have not yet tapped into the industry’s colossal influencer marketing opportunities on Instagram and TikTok.
The company has an Average Order Value of $61 and receives 35,000 monthly website visits. The business has strong customer satisfaction rates, evident from both the reviews and the 20% repeat order rate.
The company’s typical customer is male between the age of 18 and 54. Their research indicates that customers have tried many other fitness products and services designed as workout solutions before discovering this brand’s viable options. Their existing customers, research suggests, will spend disposable income on the right solution.
BUSINESS MODEL & RESOURCES NEEDED
The owner spends only 10 hours weekly on the business, which is highly automated. Tasks include managing advertising, social media, and growth strategies, while the owner’s wife manages customer service, packing and shipping replacements, and financials.
THE INDUSTRY
The global fitness equipment market was valued at $11.6 billion in 2020 and is projected to reach $14.8 billion by 2028, registering a CAGR of 3.3% through 2028. The industry has enormous growth opportunities, and this eCommerce DTC brand is well-positioned to capitalize on this growth. The health-conscious consumer demographic is growing, and people are adopting home fitness equipment as an affordable and easy-to-use alternative to conventional gym memberships. Other notable companies in the industry include Peloton, Echelon, and Mirror.
OPPORTUNITIES TO SCALE
The brand has significant scale opportunities through expanded product lines, launching on popular eCommerce sites like Amazon, and establishing a wholesale program. Launching on Amazon and Walmart would introduce their SKUs to millions of new customers. The brand can also take advantage of Instagram and TikTok influencer marketing opportunities. There is a similarly prosperous option of marketing directly to trainers, sporting goods shops, and fitness facilities through their wholesale program.
Asking Price: $400,000
Gross Income: $1,183,351
Cash Flow: $262,686
Year Established: 2019
Employees: 1
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