This eCommerce brand specializes in selling vaporizers and vaping accessories direct to consumers through their branded website. With over 200 products offered and a strong affiliate sales program, the company has experienced significant growth in sales over the past three years. The industry is booming as cannabis use becomes legal in more states, and the company is well-positioned for future success as the global cannabis vaporizers market continues to grow.
The company operates entirely through their own website, selling products directly to customers. They have developed relationships with multiple distributors and expanded their product line to include a wide variety of vaporizers, glass wear, mods, and other smoking accessories. Sales have been strong year-round, with a focus on digital marketing techniques such as SEO and affiliate marketing. The company also maintains a high level of customer service, including fast deliveries and responsive customer support.
The company stocks up to 75% of all products and uses multiple distributors as drop-shippers. They have a 500 square foot garage for storing inventory and make an average of 15 shipments per day. They purchase products directly from multiple suppliers and maintain about two weeks’ worth of inventory at all times.
MARKETING AND KEY METRICS
The company’s primary marketing efforts include an SEO program, a blog that educates readers about products, and an affiliate channel with strong relationships in the industry. They also have an active presence on social media, making weekly postings and engaging with followers. The company has a large email database and could leverage it for a weekly email marketing campaign. There are opportunities to expand marketing efforts through video marketing on platforms like TikTok and YouTube and launching a PPC campaign on Google.
The company’s current sales channel is primarily their own website, but there is potential to expand sales on eCommerce sites like Amazon. Sales have remained vibrant year-round, with increased sales during the holiday season. The company’s customer base is primarily men between the ages of 18 and 34. Repeat order rate is increasing at a healthy rate.
The company’s key metrics include sales growth over the past three years, average order value of $120, 33,000+ average website visits per month, 60,000+ email database, 5% repeat customer base, and 10% commission paid to affiliates.
The company’s customer base primarily consists of men between the ages of 18 and 34. They have a 5% repeat customer base and receive sales requests from wholesalers. The company’s strong affiliate program has helped them to attract loyal customers.
BUSINESS MODEL & RESOURCES NEEDED
The company is operated by the owner, who spends between 10 and 20 hours per week running the business. There is one full-time employee serving as the business manager and handling customer service inquiries. The company receives an average of 10 email inquiries per day and maintains a high level of customer service.
The company operates in the vaporizing, vape mods, and accessories niche within the eCommerce industry. This industry has experienced significant growth in recent years, driven by the legalization of cannabis for recreational and medical use. Vaporizing has become popular as a healthier alternative to smoking, both for nicotine and cannabis use. The global cannabis vaporizers market is projected to continue growing in the next decade, providing significant opportunities for this business.
OPPORTUNITIES TO SCALE
There are several scale opportunities for this business. They could develop their own branded vaporizer to offer a unique product in the market. They could also expand their product line to include more vape products as the market continues to grow. The company has received sales requests from wholesalers, indicating a potential for B2B sales. A more aggressive marketing campaign, including email marketing, social media focus on CBD and glass products, video marketing, and PPC ads, could also lead to increased sales and profitability.
Asking Price: $875,000
Gross Income: $1,330,398
Cash Flow: $226,928
Year Established: 2014