The business under review has achieved a trailing twelve-month (TTM) sales figure of $690,000, with a gross profit margin of 33% and Seller’s Discretionary Earnings (SDE) of $116,000. The owner is considering selling due to managing multiple businesses. This entity is not an actual farm but operates within a virtual framework, primarily in the US. It specializes in buying USDA organic foods in bulk for private labeling, and has established a robust supplier network to optimize costs and ensure supply chain efficiency. Products are sold through various channels: 78% through Amazon, 20% via its own website, and 2% through Walmart and eBay. With a repeat customer rate of 38.13% in the direct-to-consumer (DTC) channel, there's a loyal customer base, predominantly women aged 25-65.
The business presents several growth opportunities, notably within the Amazon ecosystem, Shopify SEO, international market expansion, digital products, social and list targeting, as well as new product launches in the health and supplements category. The business has a low advertising spend, under 1% of turnover, suggesting further potential for marketing optimization.
Financially, the business experienced a revenue boost during the pandemic, reaching approximately $1 million in sales, and it has focused on establishing a functional net margin since mid-2021. Though initially reinvesting in growth over profitability, significant growth remains possible with strategic investments and potentially reducing prices. The brand has been built with integrity, promoting a luxury lifestyle appeal rather than solely being a food source, offering robust review metrics in their favor.
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Before making an offer
1. Look for verified sellers. Sellers should verify their email, phone, and government ID. When a seller has completed all verifications, we identify them with a checkmark like this:
2. Review financials. Financials are seller-provided inputs. Always ask for verified financials. Ask for a tax return or request access to their dashboard. if it’s an ecommerce store get a transaction report.
3. Review traffic. Sellers can grant you access to Google Analytics. Ask for read-only access to verify site traffic.
4. Schedule a call. Communication is key. The best way to find out more is to speak directly with the seller. For your protection, keep all communication within Flippa.
5. Make the offer on Flippa. We’re here to help. Flippa does not charge buyers and by making an offer on Flippa you’ll get access to our post-sales support team.
1. Agreements & Contracts.
Connect with a US-based lawyer or purchase asset-specific template legal documents via Flippa Legal.
2. Conduct Due Diligence.
You can conduct this yourself or use our trusted network of industry-leading due diligence partners. They can provide in-depth analysis, identify hidden risks, and independently assess the value of the business. Learn More