Unless you’ve been hiding under a rock, you’ve probably read and heard about an industry in radical reformation, attracting entrepreneurs, venture capitalists and investors in droves.
There’s a lot riding on this movement – political elections, cultural shifts, medical benefits, and oh… financial windfalls.
Financially speaking, this industry is estimated to be approximately $10 Billion for 2015. And according to a Washington Post article, it speculates that there’s anywhere between another $10 Billion to $120 Billion unaccounted for in what some refer to as “the black market.“
Goodness … there’s a ton of money to be found in the products driving this industry!
Whether you’re pro or con this industry category, there’s no disputing that $10 Billion presents a huge financial opportunity for businesses building technologies, distribution and a brand in the Industry. And businesses that are focused on developing long-term business models stand to benefit greatly, very similar as did many businesses that were early pioneers during the prohibition era.
We are Featuring an interesting Company, Eco Science Solutions, Inc. that has quite an appealing business model. It’s approaching the industry as a technology company that has taken, smart-phone GPS locating services, e-commerce shopping ease and Uber like delivery technology, married them all together to create a one-stop shop for their passionate consumers. Click here to learn a bit about them on Yahoo Finance …
Their timing to the market couldn’t be better, and as they continue to execute, they are poised to make a big win for your portfolio.
Because the industry they serve is still trying to figure itself out. Thus, it’s fragmented with really just small players who are trying to service their customers with limited technologies and sophistication. All in all, the Industry that our Featured Company, Eco Science Solutions is targeting has been mainly ignored by mainstream businesses.
There’s a lack of organization, that only now is starting to begin to happen because it’s on the cusp of transforming from a high-risk industry into mainstream adoption. There will be a flood of consumers, and with consumers come businesses rushing into servicing the pent-up demand.
The overall industry projects a 30%+ annual growth rate. Given the number of states wanting to join the party, the growth rate could be much higher.
This indicates that there are tremendous ecommerce opportunities. Eco Science Solutions, seems to be taking a page out of Amazon.com’s playbook to focus on developing the technology infrastructure that creates marketplace opportunities among consumers and sellers where businesses can grow their brands and business offerings.
The Company is leveraging Magento e-commerce technologies, a best-in-class framework, to build its e-commerce technology platform. Magento was acquired by eBay, and then eventually spun out as a stand-alone business, and currently boasts close to a 30% market share among the 30 most popular e-commerce platforms. It gives our Featured Company a proven technology platform to build its marketplace.
And following Amazon.com, our Featured Company is focused on perfecting its marketplace on select products, and then continue to rollout new product categories as its sees traction with consumers where it can then recruit more manufacturers and distributors to address consumer trends.
Taking in one step further, the Company also offers a locating service as part of their free smart-phone app that helps consumers find and purchase products easily and conveniently. Brilliant!
So why is this Company so excited about ecommerce?
ANSWER: There are $6.9 Billion reasons why!
The industry focus of Eco Science Solutions is estimated to produce revenues of $10 Billion, of which $3.1 Billion (31%) are from ingestible product sales and $6.9 Billion (69%) is coming from ancillary products and services. That’s a big part of revenues coming from not selling ingestible product. And it’s probably worth noting that selling related products is less competitive.
It’s eerily similar to how Amazon started out. It initially launched focused on selling books. It wasn’t a sexy product line, and one that was probably not too competitive at the time. This allowed Amazon to perfect is e-commerce model while building direct relationships with consumers that eventually led to it owning the coveted “the last mile” because of its delivery of products to the doorsteps of consumers.
As Amazon started out just selling books, owning the last mile has allowed them to continue to expand their product offerings, and to grow vertically to further allow them to capture more market share.
If you take a look at our Featured Company’s business model, one could see the similarities to Amazon’s strategy.
They are developing technology infrastructure to create a marketplace. The marketplace will connect consumers with products for sale. The products offered are not considered “sexy” products. This affords for the likelihood of less competition, which allows the company time to optimize its technology and business model while building long-term consumer relationships.
ESSI will primarily connect consumers with local shops and local businesses. This allows it to provide consumers with multiple options to get their products – from their own branded delivery service (Uber-like), to in-store pick-up, to quick and convenient mail delivery.
Simultaneously, our Featured Company can perfect its local logistics model while they roll city by city with their delivery service. Localization also allows them to learn the ins-and-outs of intrastate commerce vs. interstate commerce, which will be valuable as it expands its product offerings and footprint in the marketplace.
Having built the infrastructure, it should then be easy for Eco Science Solutions to evolve and become vertically integrated, which is exactly what Amazon did.
Will our Featured Company be the next Amazon?
We’re not saying that is the case, but who would have thought that in both 1995, Amazon would grow into what Amazon is today.
There’s no denying that Amazon’s playbook is out there with a proven business model. Whether it be our Featured Company or someone else, it will be interesting to see which companies will jump out to the forefront and establish market leadership in the growing and lucrative industry they serve. Click here to lean more about the Featured Company Eco Science Solutions and what steps they are taking to cement their leadership position.