Website Closers® presents a Kids Toy & Entertainment Brand that offers children and their parents all things necessary to keep kids occupied and having fun during family vacations, weddings, events and any other time where boredom can potentially set in.
The business operates in both the eCommerce and Wholesale Channels, with a tremendous ability to scale into additional marketplaces and retail partners.
The Products
The company has become well known for its Award-Winning Entertainment Packs, but has extended beyond packs into individual toys, travel items, kids games, and so much more.
The brand specializes in customized entertainment packs, including various unique items such as stickers, coloring books, crafts, crayons, toys, educational games, puzzles, and snacks. An additional, exclusive brand explicitly designed for airplane travel enjoys robust D2C and business-to-business sales.
Supply Chain
The inventory for the items inside the Entertainment Packs is sourced from the United Kingdom via 8 primary suppliers. Due to the swift delivery times, the company never has to keep too much stock on hand and has managed to avoid supply chain issues that have plagued many others in eCommerce.
Around $120,000 worth of inventory is maintained throughout the year.
All suppliers are CE-registered large corporations that supply the leading toy stores. The owner has negotiated excellent payment terms resulting in healthy cash flow. The products are packed into a simple recipe for each SKU to avoid discrepancies and duplicates. The UK-based 3PL has learned to do this perfectly since 2018 and now ships around 50 orders daily. Notably, the same process regarding fulfillment and product suppliers can be replicated in the US to boost revenue exponentially.
Current Ownership believes the company could quickly increase revenue by 500% by advertising in the country and stocking products with a logistics company there, as there is already a US customer base purchasing from the store so domestic shipping would be welcome. The UK 3PL has a sister company in the US, which would simplify the expansion.
Two of the products are manufactured in China, and the owner has worked with them since the business opened. The vendor is highly cost-effective and reliable and ships some products directly to clients. . One of the stores top selling products is sourced from China and the business is its exclusive distributor in the UK, Europe, the US, and Canada, this is an extremely popular product which has a $130 AOV with currently no targeted ads in the US or EU
Marketing Efforts
Digital marketing efforts are broad and highly effective, achieving a combined 4.6 return on ad spend.
An agency runs TOF, MOF, and BOF ads on Facebook and Instagram. They also handle Google PPC, including branded and unbranded search terms, competitor keywords, and general terms people search for. In addition, one social media post is put on Instagram, Facebook, YouTube, and TikTok daily.
The business also uses affiliate marketing, which is set up and automated, bringing in monthly passive revenue. Another affiliate program is on the website under an app the brand uses for bloggers and influencers.
SEO is straightforward yet effective. Blogs about family and travel are posted weekly on the website.
Finally, management has heavily focused on acquiring customers by signing up for the email list. Email revenue accounts for 31% of total income, significantly reducing customer acquisition costs. An email marketing agency is responsible for weekly email campaigns and flows.
Operations
The customer demographic is broad and includes parents, grandparents, friends, and family members of children. They are typically women between 25 and 60, based worldwide, and purchase repeatedly.
90% of revenue comes from eCommerce on the Shopify-built website, while the remainder is derived from B2B wholesale clients at a 60% margin. This channel is proliferating and is projected to double in the next year.
The business is well-systemized, and the owner works only six to eight hours weekly. His primary tasks include ordering stock, liaising with the 3PL, and overseeing the virtual assistant and posting on social media. His entire role could be outsourced to a VA.
A company in the Philippines provides the business with a VA, who has worked with it since 2018. The VA is highly proficient and knows the processes inside out. They liaise with the 3PL, order stock, and answer all customer service inquiries.
One agency handles email marketing, while another handles Facebook and Google Ads.
Summary
Given the well-oiled nature of this operation, few special skills are required of a buyer to run the business efficiently and grow it substantially. The company’s metrics will impress any new owner who has run an eCommerce store before with any success. Any parent will understand the problem this service solves, and any children’s brand will welcome the database and audience that has been created.
