This company is a hard to find target – a super high growth Baby Products company with impeccable brand presence and imagery, significant YOY growth, intellectual property protections and a massive ability to scale in the near term. This consumer products company currently sells solely through the Amazon.com channel in the United States, with all fulfillment handled by Amazon (FBA). There are 8 Parent Products and a number of Child Products currently offered, with 10-15 products in various stages of R&D.
This Internet Company has proven itself year over year and has done exceedingly well throughout the pandemic. Nearly every product offered holds a ranking at or near 5 full stars – an accomplishment very few have achieved in the Baby Vertical. The Company sells UV Light Sanitizers, Food Processors for Babies, Baby Feeding Sets, Teething Sets, Toddler Plates & Bowls and Freezer Tray Sets, all in compliance with the Consumer Product Safety Commission.
The company is currently only focused on developing the brand using the Amazon Sales Channel, where customer acquisition cost is low and where most mothers begin their shopping experience for children’s products. Now that the foundation has been set, the company is cash flowing very well and in a prime position to begin focusing on additional sales channels, product verticals and international sprawl.
Additional sales channels that are immediately available include its Branded Website and other online Retail Channels, like Walmart, Target and BuyBuyBaby. Amazon International is an immediate opportunity, where the process has already begun. This is the perfect business for an entrepreneur to get into a scaling online company and learn the “Amazon Way” from an individual that has created a high Average Order Value in a super exciting sector (baby, toddler & kids consumer products).
Thanks to a diverse product assortment and category array, this internet retailer sees low seasonality risk since babies are born every day of the year. On average, the brand sees a $98 average ticket value (amazing!) year-round and is well represented through high quality imaging and product descriptions. This AOV allows for strong margins that allow the company more leeway in brand and customer development. The company has a small support team, and ownership is interested in continuing in the business after closing if that is the desire of the ultimate buyer. The perfect Buyer for this company in the eyes of the Seller is one that can bring forth experience, capital, connections and opportunity; the Sellers plan to be very specific with whom they partner since retaining equity is likely for this transaction, and a Seller preference.
Relocation to anywhere in the world is possible as no physical location is necessary. No previous experience with eCommerce is necessary for this business – everything will be trained after closing as part of the transition. This company has built itself atop an easy to run, low overhead model requiring zero office and no warehouse overhead, eliminating the need to deal with large employee or office expenditures. Amazon’s Fulfilled by Amazon (FBA) program is utilized for all pick, pack, and shipping needs, reducing the need to deal with or ship products from its own warehouse. With a low necessary workload based on current sales, and although this business is scaling organically on its own, a new owner can choose to run the business as is, and reap the rewards, or to invest in the growth of the company, which primarily would be simply through the acquisition of inventory to begin selling on other channels and internationally.
Situated for scale in a variety of directions, this baby brand is ready for expansion into almost any international channel and would be any easy addition to the Amazon Europe and Asian markets, wholesale brick & mortar, and other segment-leading – all potent ROI investments, this business is a ripe opportunity for the entrepreneur of almost any skill level.
