Featured Listing: eCommerce business in the health and beauty industry.

About the business

Tell us a little about yourself. What’s your background? How did you start the business?

My partner and I own a marketing agency that specializes in paid traffic for DTC brands. Because we have a lot of resources in-house (designers, developers, media buyers, etc), we thought it would be fun to launch a few of our own eCommerce brands.

We started out by launching a UVC sanitizing product that we scaled in 2020. We grew this brand significantly and even sold it to the US Government. Then we worked on some dental hygiene products, feminine health, and then we discovered the ultrasonic cavitation product.

I (Brad) handle the financial stuff, shipping/logistics, managing the day-to-day financials, and managing our full-time employees. My partner (Adam), deals with creativity, media buying, and anything marketing related.

My business partner, Adam, found a similar product on Indiegogo, which had sold 7 figures. So we decided it was worth testing a product in this niche. Prior to this product, we had success with other products in the health/beauty space, so we felt as though we had a pretty good formula for what works.

We built our first iteration of this brand, called Numi, and then began to scale.

As an eCommerce business, where are your products made?

China. The product is manufactured and shipped from China. We do have about $5,000 worth of inventory in the USA, but those will be gone before this auction ends.

What can you tell us about your Customer Lifetime Value (CLV) and Customer Acquisition Cost (CAC)

Currently, the CLV is only $96. The new owner should figure out a good way to squeeze more from existing customers. I recommend adding an additional product, or starting a totally new brand in the fat loss/cellulite removal niche, and then retargeting customers with a different product. Also, we have done ZERO email marketing. This would be an easy win for the new owner.

One thing worth noting is that the currently upsell converts at over 85%. That boosted the AOV and allowed us to increase our target CAC.

Our CAC varies depending on the platform. The margins on this product are very good. We purposely priced the product higher than average so that we could spend more to acquire a customer.

Facebook Ads CAC: ~$45
Google Ads CAC: ~$50
New content, UGC, and new marketing angles will help to lower this.

How have you marketed the product and where are your customers originating from?

We market the product on Facebook ads and Google Search Ads. The new owner should try Native, Google Display, and possibly Snap or TikTok.

All customers are from the US and Canada. We do not promote outside of those regions.

Is the asset on your listing owner-operated, how much time does it take to run the business, who else is needed on the team, and what is automated?

It takes a couple of hours per week to deal with the advertising. If you are scaling, it can take up more time. But just in general, maybe 1-2 hours weekly to adjust bids, change ad copy, etc.

On the financial side, it takes <1 hour per day to track the numbers. Our employee, Regine, updates the P&L, handles returns and customer service, and works with the fulfilment partner to get the orders to the customers. I (Brad), oversee this part of operations.

What does someone need to do to continue operating the business in its current form?

• Be reasonably proficient with online advertising. We have slowed down on the advertising in the past few months, but we still are spending around $800 per day on paid traffic for this brand.

• When the new owner starts scaling back up, the ad spend can reach around $3500 per day on Facebook and around $1500 per day on Google. So I would say, just be comfortable spending those amounts on paid traffic or hire a media buyer who knows what they are doing. Don’t hire a media buyer who does not have experience with high-spending ad accounts. They will not be able to handle it.

• This product performs best with a direct response, impulse buy mindset.

• The new owner needs to understand that there are big ups and downs in advertising and they should be comfortable with that.

Growing the business

Can you list a few opportunities for a potential new owner to continue growing the business?

Oh yeah! Plenty of them!

1. Email marketing
2. Google Shopping
3. Google Display and YouTube
4. Cross promote another brand/product to the existing customers.
5. Launch a second product, increase the pricing (?)

What has been the evolution of this asset since its launch?

Our first iteration of this brand (Numi) scaled very fast. When Facebook banned the brand, we launched Olivi and scaled up very fast again. The ups/downs are related to advertising compliance issues. Our third iteration DermaWave is starting to scale on Facebook right now.

How does this business make money? What are the current revenue streams?

Ecommerce. Direct to consumer sales.

What marketing channels are most profitable for the business?

Facebook Ads.
Google Search Ads.

How does the business currently acquire customers and what is your breakdown for marketing costs?

Google Ads: ~$550 per day
Facebook Ads: ~$250 per day, increasing this currently.

How big is your current team? How many people does it take to run this business?

2 owners, 1 full-time employee. Some of our other employees help out with this business, but only here and there. The 1 full-time employee handles the day-to-day operations.

What’s the reason for selling your business on Flippa?

We want a lump sum of cash to invest in our SaaS venture as well as an unrelated e-commerce venture (home goods niche, not health/beauty). We are willing to sign a non-compete with the new buyer. We will be willing to stay out of the weight loss and cellulite removal niches for a period of time.