Started in 2004, this holistic wellness product business works with Japanese tea farmers and processors to create unique organic teas. The top-selling product is not sold anywhere else and would be difficult for another company to reproduce due to the complexity in sourcing and processing. As a result, the gross margin for this product is 82%.
More than just an online tea seller, this business develops and sources products that customers incorporate into their holistic wellness plan. The business spends less than 1.5% on advertising thanks to non-paid recommendations from healthcare professionals, word-of-mouth, and strong organic and direct traffic to the website.
In the trailing 12 months, revenue has grown 24% to $483,129 despite having out-of-stocks on their top-selling product. SDE grew 14% during the same period to $221,882. The business has a healthy mix of sales channels including their own website (47%), wholesale-retail (25%), Amazon FBM (14%), wholesale-bulk (10%), and phone/email (4%).
Customers love the products. Repeat order rates for their website is 59%. The Amazon repeat order rate is 44% despite being FBM and no subscribe and save option.
The owner runs the business, processing, and fulfillment out of their home. This business could easily be relocated or a new owner could outsource the processing and fulfillment. The current owner exclusively speaks Japanese to her farmers and processors. She has offered to continue translation services post-transition period for a moderate fee. The owner believes the trust and relationships built with farmers and suppliers will easily transfer to the new owner.
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Chris has always been an entrepreneur at heart. His first internet start-up was at age 15, reselling electronics on Ebay, where, as an early adopter, he had a 4 digit password until Ebay forced him to update in 2015. He has helped start various online businesses, including an SEO agency, online real-estate brokerage, and flash sale website before entering the VC-backed high-growth start-up world. There, Chris honed his skills in mobile product management at RetailMeNot (IPO 2013) before moving on to leadership and executive roles at Mobile Travel Technologies in London (Sold to Travelport in 2015) and Student.com in Shanghai, China. He was also a founding member of the first Amazon aggregator, 101 Commerce.
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