Overview
NOHA is an emerging Health and Beauty e-commerce brand operating under a direct-to-consumer model. Since its inception in 2023, it has gained traction by offering a curated range of wellness and skincare products. The business primarily relies on Shopify for its online operations, ensuring seamless transactions and a streamlined customer experience. With a strong focus on branding and digital marketing, NOHA has developed a significant online presence and a growing customer base.
Financially, NOHA demonstrates solid revenue and profit margins, with an annual revenue of $537,303 and an annual profit of $226,205, representing a 42% profit margin. Despite its relatively short operational history, the business has quickly scaled and capitalized on growing consumer interest in self-care and wellness.
Key Insights
Website Performance and Metrics
NOHA operates on Shopify, ensuring a stable and scalable e-commerce infrastructure.
The website is well-branded and visually appealing, effectively showcasing its product range.
Mobile optimization and a smooth checkout process contribute to positive user experience and conversion rates.
Customer reviews on the website indicate strong product satisfaction, though there are no reviews on Trustpilot.
Finances
Revenue and profit figures are promising but not entirely stable.
The profit margin of 42% is strong, indicating cost efficiency and effective pricing strategies.
High multiples (2.7x profit multiple and 1.1x revenue multiple) suggest that the business is priced at a premium, which may impact the investment decision.
Average Order Value (AOV) of $98.00 suggests a strong pricing strategy and potential for repeat purchases through consumable products.
Operational Efficiency
NOHA follows a direct shipping model, reducing the need for warehousing and allowing for lower operational costs.
The company successfully manages fulfillment, ensuring timely delivery of products.
Inventory management appears efficient, but further details on supplier reliability and stock availability need to be confirmed.
Customer Data and Relationships
NOHA has built a substantial email list (41,378), which can be leveraged for future marketing and customer retention strategies.
Number of customers (44,951) shows strong acquisition efforts but suggests many are one-time buyers.
Customer retention metrics and repeat purchase rates should be further examined.
Legal and Compliance Due Diligence
No reported legal or compliance issues based on public information.
Need to verify business licenses, supplier contracts, and compliance with health and beauty regulations in key markets.
No Trustpilot reviews, which may impact credibility and trust among new customers.
Challenges Identified
High Business Valuation: The high revenue and profit multiples suggest that the business may be overvalued, requiring further financial scrutiny before acquisition.
Customer Retention: While the email list is extensive, repeat purchase behavior needs further analysis.
Lack of External Reviews: No Trustpilot presence could impact new customer trust and conversion rates.
Revenue Stability: Revenue and profit fluctuations indicate potential inconsistencies in sales performance.
Supplier and Fulfillment Risks: Reliance on a direct shipping model needs further assessment to ensure long-term supplier reliability and logistics efficiency.
Recommendations
Financial Verification: Engage with the seller to verify revenue and profit consistency over the past two months and gain insights into cost structures.
Customer Acquisition and Retention Analysis: Investigate repeat purchase rates and strategies to improve long-term customer loyalty.
Third-Party Reviews & Brand Trust: Establish a presence on Trustpilot or other review platforms to enhance credibility.
Operational Audit: Review supplier contracts and fulfillment efficiency to ensure scalability and reliability.
Valuation Negotiation: Given the high multiples, consider negotiating a more favorable acquisition price based on financial performance verification.
Conclusion
NOHA presents a compelling acquisition opportunity in the Health and Beauty niche, backed by strong branding, a growing customer base, and high profit margins. However, challenges such as valuation concerns, revenue consistency, and customer retention strategies must be addressed. Further engagement with the seller is essential to verify financials, supplier relationships, and operational sustainability before making a final acquisition decision.
