Website Closers® presents a scaling eCommerce Brand in the Children’s Products Vertical, focusing all of its sales efforts on the Amazon FBA Platform, and ready for further scale.
Like many small businesses, this eCommerce Brand was developed by its Founders out of necessity. The products were developed by a Husband-and-Wife Team when they discovered the need for better travel products for their children. The brand’s range of products offer help for parents and children without the need for unnecessary baggage. The core line comprises a number of helpful products for parents, including Gate Check bags for Car Seats and Strollers and a number of Kid-Focused travel accessories. 20 additional products are currently in R&D and ready to be launched.
Operations
All products currently sold by this company are ordered from a Chinese supplier, with whom the business has worked for more than 2 years. The manufacturer creates products with the brand on all products and packaging, and according to the designs from ownership. All products are exclusive, and the company has a registered trademark in the United States and China.
A 100% stock inventory model is utilized. The owners typically order one container at a time, depending on the needs and sales calculations. Terms with the manufacturer are favorable, with only 15% required to get the order started, and 65% due after inspection when the order is ready. The remaining 20% is due upon arrival at Amazon FBA Facilities. As a result, logistics are simple, and only those two parties handle the merchandise. The business generally maintains $160,000 of inventory in stock—which equates to three months’ worth of sales—and a similar amount in transit.
Across the range, the Amazon storefront achieves a $26 average order value, with strong sales throughout the year. Summer is peak season as more people travel for vacation. The company’s products show thousands of strong product reviews across the range, providing validation of customers’ acceptance of these products for travel.
No employees or contractors are necessary, and the owners work less than 10 hours weekly, focusing primarily on checking the following:
- Sales
- Account Status
- Listings
- Customers Emails
- Inventory and Supply
Management has identified areas for enormous growth in the current niche as well as the nursery, automotive safety, and feeding and diapering categories. As noted above 20 products have already been created and are ready for investment.
Scale Opportunities
Scale opportunities go beyond product development. Expanding into new markets like Europe, Canada, and Mexico would likely prove highly lucrative. The brand can grow exponentially by researching each region and tailoring marketing efforts to local preferences and culture. This could include translating the listings and adapting the products to meet local regulations and standards.
The company could consider selling on new marketplaces, such as Walmart and eBay, as well as pushing sales on its Shopify-built, Branded Website to expand its online presence. Selling on these platforms can provide access to a broader customer base and allow the company to increase its market share further. Promoting sales on Shopify can provide additional flexibility and control over the customer experience and shipping options.
Partnering with brick-and-mortar stores to reach customers who prefer to shop offline may be valuable for growth. This strategy could involve establishing distribution partnerships or setting up pop-up shops. Furthermore, the company should consider aligning with retail partners who share similar values and customer demographics to maximize the impact of offline distribution efforts. Lastly, the company would like to partner with well-known brands of car seats and strollers to offer add-on accessories.
Marketing
Investing in Google Ads is low-hanging fruit to increase visibility in search results and subsequently boost traffic and revenue. Conducting thorough keyword research, creating compelling ad copy and landing pages, and continuously testing and refining ad performance can easily be outsourced or managed in-house by a new owner with the necessary expertise. Additionally, leveraging data and analytics can help the company optimize its advertising budget and achieve the best return on investment.
Advertising on social media and creating engaging campaigns would help the brand build a more considerable following and attract new customers. The company could consider partnering with influencers to reach a wider audience and create authentic content that resonates with potential customers.
Summary
This is a great mom and pop eCommerce brand that has been built for success. After 6 years of building the brand, which continues to grow year over year, the owners are ready to hand over the reins to a buyer that has the drive to continue to grow the product array, geographic footprint and overall size of the business. With $35M in revenue within reach, this is a great opportunity at a historically low multiple for a growth company to get in, learn the business and begin growing it immediately. Few special skills are required to operate this business and enjoy continued success, enormous growth, and a swift return on investment.
