From $0 to Over $5 Million in Annual Revenue 

About Our In-House Brand

DermWarehouse has turned into one of the largest dermatologist owned skincare sites in the United States with over 150,000 customers (and growing). What’s so unique about DermWarehouse is that it was founded by Jason and Stefanie Parks, the brother and sister duo who founded The Media Captain [learn how they started this eCommerce company].

Above is a picture of the Parks family. They love operating a family owned business!

Key Differentiation

The Media Captain practices what they preach when it comes to digital marketing, which is a differentiation versus other agencies. We’ve spent our own money for DermWarehouse and invested in the necessary infrastructure to grow this eCommerce brand from scratch into one of the leading dermatologist owned skincare sites in the United States. We know what it takes to succeed in eCommerce marketing. We have the eCommerce development resources to lay the proper groundwork from a technical perspective. We also have the digital marketers to deploy the right advertising campaigns. We feel this hands-on experience is unmatched, although we have plenty of other success stories to boast about. 

The Challenge

Customer acquisition is always the biggest challenge for any eCommerce company starting from scratch. From the beginning, we focused on our paid advertising strategy for customer growth, which was going to be the immediate win we needed. Based on the nature of our products, we knew we’d have a strong retention rate and lifetime value of customers as there is a natural tendency to refill your product once it’s empty. We had to nail it with our paid ads and we did (continue reading on how this happened).

Like any business starting from scratch and growing, there have been bumps and bruises along the way. For DermWarehouse, the biggest challenge was finding the right technology connections for the site to better streamline the logistical process. Below are some of the technology pieces that streamlined our entire operation and improve efficiency. 

➼ WooCommerce (eCommerce platform)
➼ Avalara (taxes)
➼ ShipStation (shipping)
➼ TrustPilot (online reviews)
➼ QuickBooks (accounting)
➼ FreshDesk (customer service)
➼ LiveChat (real-time chat capability)
➼ Klaviyo (email marketing)

The Strategy

What started as a modest $5,000 advertising budget continued to increase as we were able to justify the return on ad spend. Within 18-months of site launch, we scaled to over $50,000 per month in advertising spend. Our operation continued to grow as we acquired new customers and upheld our standard of top customer notch customer service [learn how our agency helps with customer service strategy].

The majority of our ad spend goes towards Google and Bing, a diversified strategy between Shopping Ads and PPC ads. Since we’re a reseller (meaning we sell other brands) people are already familiar with the brands we’re selling when they conduct a Google Search. This makes our conversion rate high as we’re not having to introduce potential customers to a new brand (it should be noted, we launched our own private label, Park Perfection). You can see in the image below how we get our ads to populate via Google Shopping. 

Strategy That’s Led to Success: 

➼ Invest in our brand story to make a personal connection with our customers
➼ Invest in Google and Bing PPC Ads
➼ Invest in Google and Bing Shopping Ads
➼ Capture emails on the website
➼ Turn email addresses into customers via Klaviyo
➼ Invest in retargeting to reinforce our brand message
➼ Invest in search engine optimization (longer term strategy)

The Results

Each year, there has been substantial revenue growth. DermWarehouse continues to surpass major eCommerce milestones with customer acquisition, company growth and customer service benchmarks. 

➼ 118.86% revenue growth in 2020 versus 2019
➼ 83.04% revenue growth in 2019 versus 2018
➼ 418% revenue growth in 2018 versus 2017

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