Launched in September 2020, this Shopify site sells private-label CBD-related products, including gummies, tinctures, topicals, pills, and capsules for people and pets. The products are sourced from the US and manufactured and derived from federal-government-approved hemp plants in Colorado. They are inventory based and utilize a 3PL in the US, which creates short lead times given the product’s US sourcing. Product is distributed to multiple, strategic warehouses across the country in order to minimize shipping costs and times.
The company enjoys a tremendous repeat customer rate of 50% and has also established a sizable member subscription base of over 11,000, which provides recurring revenue to the tune of approximately $20,000 per month. Because CBD cannot be marketed on typical advertising/marketing channels such as Facebook and Google, the company utilizes affiliate marketing to generate the vast majority of its revenue. The balance of revenue is generated from emails sent to their email list of 13,000 and counting.
They have one small wholesale account, and the owners see wholesaling as a primary growth avenue and have plans for how to execute that. Other growth opportunities include adding new CBD products and variations and formalizing a relationship with a publisher they’ve been working with that could increase revenue by 20% according to the owners. They’ve also launched a new website (included in the sale) they can utilize specifically to run ads on Google and major social media platforms.
Two brothers own the business, with one of the brothers being absentee and the other spending about 5–7 hours per week on the business. While the business now doesn’t take up much of their time, they’d both like to cash out to have capital to invest in non-online investments. ***The business is SBA pre-qualified for up to $400,000.***
Access the full business summary, profit and loss statements, and a detailed interview with the owner of this business
Chris has been a business broker for the past 17 years, representing hundreds of sellers, and having earned the accreditations of Merger & Acquisition Master Intermediary and Certified Business Intermediary. Chris also created and sold his first e-commerce businesses in 2003, and has since purchased an affiliate marketing site, created multiple content sites and an Amazon FBA business. He joined Quiet Light to merge these two passions and help online business owners reach their exit goals.
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