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Backyard Chicken eCommerce Retailer – Live Chickens, Chicken Coops & More – 52% Repeat Order Rate – 14 Years in Business – 31 Employees on Staff

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Website Closers® presents an Agricultural eCommerce Retail Brand in a highly niche and sought-after sector … they focus on providing consumer products and services in the Backyard Chicken Vertical. Keeping Residential Chickens has grown tremendously popular all around the nation over the last several years, and this business is a perfect opportunity to enjoy those tailwinds.

This acquisition is virtual and brings with it digital management systems, remote staffing, established eCommerce selling platforms, and a hybrid shipping system to drive well rounded interest and conversions. At the moment, this company has 4 main product offerings: Live Chickens, Pet Supplies, Themed Gifts, and Full Size Chicken Coops. Due to the varied verticals within this business, their shipping systems are unique: 71% of orders are fulfilled through drop shipping, 29% through inventory, and .3% through digital downloads. This is a lucrative, reputable eCommerce Business with a high AOV of $130 and a solid repeat customer rate of 52%.

Current ownership has developed strong relationships with their suppliers, which has translated into preferred pricing, exclusive access to new SKUs, and streamlined inventory processes. These business relationships are extremely valuable intangibles in this vertical due to increased demand for these types of pets. The strong demand has led to chicken hatcheries and fowl breeders making the decision to rely on their trusted connections rather than taking on new accounts and supply chains. Over the last 14 years this business has evolved with their key partner hatchery, meaning that their symbiotic relationship is an integral part of both businesses and would be hard to replicate for other companies seeking to offer these popular pets.

In terms of their supply chain, orders for live chickens are fulfilled by either a partner hatchery or breeder and sent directly to the consumer. The majority of the chicken coops offered by this company are exclusive designs that have been developed and branded in-house, then shipped from a manufacturing partner. Their non-exclusive coops are drop shipped from partners in the US. The supplies and gifts offered through this retailer are sourced from wholesale distributors and manufacturers, then stored and shipped from a company-owned warehouse that is located on the East coast. However, the success of this business is not location specific, so this warehouse and its inventory can easily be moved closer to its new owner.

To drive sales, this company has engaged in strategic digital advertising. The existing marketing strategy includes running dynamic ads on Google Shopping as well as retargeting and remarketing campaigns that are currently holding an 89% and 81% margin over the last 12 months, respectively. To supplement this advertising, this company engages with their vast number of opt-in contacts via weekly promotional emails and posts daily to their social media channels. Their social media work has resulted in strong sales revenue with the highest engagement rates happening on Facebook. In addition to these practices, the company invests $28,000 each year in paid advertising on their selling platforms, Amazon and eBay, resulting in an 87% and 95% profit margin, respectively. Alongside these paid promotions, this company has employed a small but effective affiliate marketing team.

These marketing efforts, paired with the increased interest in raising chickens at home, have resulted in this business experiencing a high volume of orders that has allowed them to achieve a high order value, with customers spending an average of $130 per order. 52% of orders stem from repeat customers, this is an exceedingly high rate, especially in this vertical. In terms of buying patterns, there is a degree of seasonality but there are continuous sales year-round. The ownership has seen the highest volume of sales from January through May, with the majority of those sales happening in March and April. While sales are not as high in the later months of the year, purchase volume then holds at a steady and lucrative level from June to September.

To maintain this growing operation, there are currently 29 employees; 17 customer service representatives, 3 customer service managers, 3 fulfillment staff, 2 bookkeepers, a fulfillment manager, a designated buyer, a director of marketing, and a director of operations. This fully remote team is passionate about their work and engaged in the brand’s success, which has resulted in low turnover and long-term employee retention. With such an expansive and dedicated support network, the 2 current owners benefit from the business’ profit while only spending a cumulative 20 hours per week to the company’s oversight. The owners are responsible for staff support, high level direction, company-wide decisions regarding their ad spend investments, and developing new product offerings.

While knowledge of chickens and fowl species would be helpful for the new owner, any buyer will be able to hit the ground running and benefit from a seamless transition with the assurance that the existing team is capable of maintaining the company’s success after closing. However, any prospective buyer with an existing understanding of business management, eCommerce practices, customer service, marketing strategy, and partner relations will have a significant advantage when it comes to ensuring continued profitability and expansion.

This business has a proven track record, yet there are still a number of opportunities for expansion. These verticals are especially attractive to social media users, meaning that paid Facebook advertising could impactfully supplement their existing sales funnel. An investment in SEO could also lead to increased success.

Carrying an existing following, this company’s weekly digital newsletters have resulted in 95,000+ actively engaged followers within the last 12 months. While the majority of sales are happening through their branded website, additional sales platforms may position this acquisition effectively for continued growth. A marketing strategy that places an added focus on these extended lead generation sources could drive a dramatic rise in revenue.

This offering is a well-developed and mature business with tremendous opportunity for expansion. Capitalizing on its existing reputation, established partnerships, and dedicated customer base, a capable new owner could easily propel this company to the next level. With a dedicated team, invaluable vendor relationships, and an attractive product offering, this business is poised for unrivaled profit and success.

This eCommerce Retailer Represented by:

WebsiteClosers

Technology, Internet & eCommerce Business Brokers

Listing ID:  WC2249

Asking Price
$ 3,500,000
Cash Flow
$ 862,364
Gross Income
$ 6,578,047
Year Established
2006
Employees
31

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