Website Closers® presents a high profit margin eCommerce Brand in the Children’s Travel Entertainment Vertical. They have created a loyal customer base within this niche where they enjoy one of the best net margins in the industry, great reviews, solid keyword rank, and immediate growth opportunities. Marketing products that families can use to entertain their kids while traveling, the company has made a serious connection with parents eager to reduce the stress of traveling with little ones.
The company’s many 5-star reviews attest to how well their Entertainment Packs keep both parents and their children happy. Their SKUs have made this company an Award-Winning Children’s Brand, one that attracted a very significant client in the British Royal Family, who used their entertainment packs for the Royal Wedding of Princess Eugenie in 2018. The Royal Family has been a repeat buyer ever since.
They’re not alone. Parents are eagerly purchasing and repurchasing this Brand’s products, resulting in a nearly 30% Repeat Customer Rate. But the profit margins are the real story here — this company enjoys 40%+ net profits and 70% gross margins. At the same time, overhead is low, particularly on marketing since the company has a superior talent for using social media marketing to connect with buyers and drive sales higher. With 130,000+ followers across their social platforms, the company has found creative ways to keep its customers engaged. This has enabled the brand to continue expanding its customer base through low customer acquisition costs.
While this brand has enjoyed rising DTC sales since first launching in 2017, the brand has a fast-growing number of B2B contracts with wholesalers and other businesses that market products for families and kids.
That’s a massive market today. Family travel and tourism remain one of the largest and most profitable subsectors within the travel industry as families recognize the value of spending quality time together. Family travel statistics demonstrate that families tend to travel more often than couples or individual travelers, and the average family spends $3,800+ each year on their travels.
More people take family vacations with children (44%) than with friends (40%), and travel by plane (54%) and car (47%) are the most popular means of transport for them.
Many of these families will be looking for ways to keep their children entertained during the road trip or airplane ride, and this company has found a creative way to meet their needs.
This brand also benefits from the desire among parents looking for interesting and innovative new toys for their kids. The toys industry remains evergreen and enormously prosperous, projected to grow from $141.08 billion to $230.64 billion by 2028, a 7% growth rate.
Since being launched six years ago, the company has billed itself as the ideal way to reduce the stress of traveling, with their Entertainment Packs ideal for long car trips, equally long flights, and plenty of other types of vacations. With six unique entertainment packs created for different age groups, the company keeps its customers coming back for more with 100+ individual SKUs available to go inside those packs.
The company found quick success with moms between the ages of 25 and 60 who loved the idea of an Entertainment Pack for their upcoming vacations. Since then, the company has expanded its sales to also include grandparents, aunts and uncles, and family friends who view these packs are the perfect gift for a loved one. Their Entertainment Packs also make great gifts for special occasions such as Christmas gifts, weddings, and birthdays.
With a rapidly expanding DTC customer base, their sales continue improving. The company enjoys steady sales year-round, with peaks from March through September – when most families head off on vacation – and then again around the holidays during the gift giving season.
Their B2B contracts are also on the rise, with a growing number of wholesale purchases that now amount to 10% of the company’s gross profits. That percentage is projected to double in 2024.
The company has been able to boost its organic traffic and increase sales through creative social media and email marketing campaigns. Both are delivering 50,000+ unique monthly visitors to their Shopify website.
Content creation has been a strong tool for them. An educational blog on their website is updated weekly, and the company posts regularly on Facebook and Instagram, where they maintain 130,000+ followers. Daily posts on these sites, video marketing, and an influencer campaign have been perfect tools for boosting their brand recognition.
With 85,000+ subscribers in their email database, another significant content tool has been their email newsletters which drive upsells and improve their Repeat Customer Rate. They have enjoyed similar success sending text messaging to the 9,000+ subscribers in their SMS database.
Their customer base has also expanded thanks to the PPC ad campaigns run on Facebook, Instagram, Google, and TikTok, which are providing a healthy ROI.
A Turnkey Operation.
A major benefit for a buyer is how highly automated this business is, one that can easily be operated remotely. The current ownership maintains a low workload, about six hours per week, while a virtual assistant handles customer service inquiries and coordinates with their 3PL. Management now orders stock, which could also be outsourced to a VA, and an email marketing agency coordinates their email campaigns. With sales on the increase, 50+ orders are being shipped daily from their 3PL. Managed by Shopify Fulfilment Network, this 3PL automatically alerts the company whenever inventory gets low. This company relies on six trusted suppliers for the products placed inside their Entertainment Packs.
Americans are traveling in large numbers today, and parents are not only buying their Entertainment Packs but reading their blogs offering tips and advice on how to have a great family vacation together, making this company an authoritative voice on the subject. This has helped drive customer loyalty even higher, and a buyer gets to enjoy their solid recurring revenues while taking advantage of multiple ways to scale this business.
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