June 2024 Update
Revenues up 📈 Own Brand at 10.5% 🎉 Olive Oil Live 🫒 AOV's continue to grow 📦
Another very solid month indeed. Our revenues continued to grow. Our own brand is proving itself to be a very successful project to scale. Our burn is back down to £5k again. And our AOV’s continue to grow.
June is a good example of where - even with very limited resources - the whole team is becoming very clear over the growth levers and areas of execution needed to make WellEasy both a profitable and scalable endeavour.
So here’s why we’re very pleased with June…
🙌🏼 Highlights
Own Brand is now 10.5% of sales 👈🏽👈🏽👈🏽
Membership renewals increase to 58%
Extra virgin olive oil already highest revenue product on the store
Members AOV’s increased by £0.70.
New WellEasy grass-fed ghee ready for launch in July
Google ads performing strongly with very low CAC
CAC drops by £2.
Burn back down to £5k
Plans for WellEasy Days in July successfully executed
🤔 Lowlights
We want to spend more time working closer with our brands
Remote working is making content very difficult and a relatively inefficient process
Small dip in sign-ups due to one day less this month
The headline - Building the Right Business 📈 👍🏽
June was another solid month for us continuing to scale the business in ways that are having a tangible impact on our KPI’s. There is still lots of room for improvement across our marketing and especially Meta ads which we’re continuing to double down on.
We’ve got 4 things to tell you about
1. Own Brand is Thriving 🫒
June has been an amazing month for proof that our own brand plans are working incredibly well. We’ve been able to increase the % of own brand sales from 8.4% to 10.5% with the introduction of our regenerative organic coconut milk and our new extra virgin organic olive oil. Both of these products have flown up our best sellers list to become part of our top 5 products. We’ve got a long pipeline of some exciting and well sourced products to come…
2. AOV’s Growing MOM 📈
With the growth of our own brand products, more members re-ordering, and a focus on showcasing our unique trusted assortment; we’ve not only seen increases of first order AOV by over £4 in the last few months, but member AOV continues to grow too. In June our member AOV increased by another £0.70 per order.
July is looking promising already for AOV’s as well.
3. WellEasy Days 💰
In June, we made the decision to prepare for the first annual WellEasy Days in July. Together with some of our closest brands, we’ve begun to promote an exclusive two day sale with up to to 50% off some best selling brands - exclusively for members. The additional discounts have all been funded come from the brands themselves and at the minute, our amazing brands continue to want to do more marketing with us. WellEasy Day is a similar structure to the very successful Black Friday we had last November and we’re so excited to see the outcome of this in July.
The inspiration for this comes from the success that Prime Day has for Amazon Prime - good article here
4. Burn Back Down 💸
June also saw a big improvement in our burn again and we are very confident to achieve EBITDA profitability this year. The improvement was down to the following key things:
Improvements in marketing efficiency
Increase in order revenues and small own brand margin gains
MOM growth in annual renewal rates and small improvements in free trial conversion
Key Metrics for May
These are numbers for June 2024 compared to May 2024
Total Monthly Sales = £227,753.55 (£221,785.63)
Net Monthly Order Revenue = £189,409.78 (£181,297.44)
Net Monthly Membership Revenue = £25,196.23 (£27,155.94)
Members on Annual Membership = 10,578 (10,202)
Members on Monthly Memberships = 91 (91)
Total Marketing Spend = £23,889.66 (£26,336.02)
Free Trial Customers = 883 (898)
CM1 = 36.44% (37.14%)
CM2 = 20.48% (19.78%)
CM3 = 8.44% (6.20%)
AOV = £70.81 (£70.11)
Own Brand (% Sales) = 10.5% (8.46%)
CAC = £17.05 (£19.60)
Free trial conversion to member (April Cohorts) = 43.5% (41%)
Burn 🔥 = £5,454 (£13,365.42)
Runway = 22+ months
Founders’ June Reflection
As both a team and as founders, we felt June was a very successful month. Our revenues have grown and our key KPI’s continue to trend in the right direction. As mentioned at the beginning of this update, it is becoming clear now where our attention, funds and skills are needed to fully capture the massive opportunity for a trusted grocery brand in the UK.
We’re going through some small frustrations as a team with a need for a few more hands and and more ideal office-based setup to help with our content strategy. Remote work certainly has its benefits but we are starting to feel its frustrations strongly too. As such, we’re putting plans in place to solve this quickly. We need a buyer in the team to manage relationships with our brands, and a core office setup in London.
Aside from this, it’s been very pleasing to see just how successful our own brand is growing. Not only have we been able to launch two very unique best selling products in the last 6 weeks but a 2.1% climb in sales from our own brand is very strong too and this is carrying through to profits per order and AOV’s.
As anticipated, our burn dropped back down to £5k in June and we are on a very solid path to achieve profitability this year and a big July is the focus. July is a solid month for us in general but this year we’ve gone live with our WellEasy Days too!
July Focus
Our focus for July is largely on WellEasy Days whilst continuing to push on with own brand and marketing improvements on Meta ads.
July Objectives TLDR
Launch new WellEasy British Grass-fed Organic Ghee
Focus on improving Meta to focus on new sign-ups
Focus the team on membership conversion
Explore inventory financing options and roadmap in place to optimise cash flows
Make sure WellEasy Day are a huge success
Raising some quick funds to complete rebrand and critical new hire
Redesign product page based on customer insights gathered
Our Ask
No general asks this month except to support us by telling people about WellEasy Days 10th - 11th July
INVESTOR SHOUT OUTS
George Radford for checking in often and continuing to fuel the energy for our mission.
Angelica Anton, Clement Helinckx, and those of you continuing to choose WellEasy as your trusted food shop.
Want to see your name here? We’d love to see it too! 😉