Website Closers® presents an eCommerce Company that successfully combines the appeal of Kids Toys with Travel Products, the perfect match for families that love to vacation together. While kids have come to love their products, it’s the happy parents who are eagerly buying them. The company has enjoyed rave reviews by making traveling with kids considerably easier.
In fact, parents have become so enamored with their products that keep children entertained while traveling that they now boast a nearly 30% Repeat Customer Rate. Their appeal to parents has made them an Award-Winning Children’s Brand, and they’ve recently done an exceptional job attracting B2B contracts. Combined with thriving DTC sales, the company now enjoys over 40% net profits and 70% gross margins while they maintain low customer acquisition costs. They also have a demonstrated skill at using social media to drive sales higher, with 100,000+ followers across their social platforms.
Those profits go to a turnkey business that is operated remotely, with a very minimal workload for the current ownership.
For a buyer, this is an opportunity to enjoy the financial rewards of owning a highly successful business, while also having some impressive options for scaling this business and becoming an industry titan within two enormously profitable and evergreen industries.
As long as parents continue having babies, there will be high demand for new toys that capture the imagination of the little ones. A new owner has an opportunity to own a company with a secure footing in the prosperous toys industry, projected to grow from $141.08 billion to $230.64 billion by 2028, a 7% growth rate.
With millions of families traveling for vacation, 2022 was a banner year for travel across the U.S., bouncing back with a vengeance thanks to increased pent-up demand following the pandemic, and increasing another 4.7% year over year through June 2023.
As more Americans opt to start traveling again, companies are enjoying great profits marketing products and services to traveling families. This brand has seized on that opportunity, and posts a popular travel blog on its website that offers tips and smart ideas for turning a fun trip into a great one. The company has soared on messaging that provides ways to keep little ones entertained and happy during a vacation and has become an authority on family travel. The company’s organic traffic went through the roof over the past 18 months as travel reopened, and there are plenty of clear reasons why that happened.
The Company
Founded in 2017, the company markets kid’s products that help parents out on the road with their children, designed to reduce the stress of traveling. The brand has won over the loyalty of customers through its Entertainment Packs suitable for car journeys, flights, and other types of vacations. The company now has six types of entertainment packs for different ages and more than 100 individual SKUs to put inside those packs.
In the past six years, sales have continued to rise, with March through September now their peak time for generating revenue. Sales also jump up in November and December around the holiday season.
The brand operates on its Shopify website, and its typical customer is now a mom between the age of 25 and 60, although buyers can just as easily be parents, grandparents, aunts and uncles, and family friends. Entertainment packs have become popular gifts on special occasions including birthdays, Christmas gifts, weddings, and even hospital stays. One of the brand’s most notable customers has been the British Royal Family, who used their entertainment packs for the Royal Wedding of Princess Eugenie in 2018 and have been repeat buyers ever since.
While the vast bulk of its sales are DTC, the company is starting to receive a growing number of B2B wholesale purchases, which have become 10% of its overall revenue. Projections are those figures could double in the next year.
Operations
The company is now shipping at least 50 orders per day from their 3PL provided through Shopify Fulfilment Network, which has a strong inventory management system that alerts the company whenever inventory is low.
The items stocked for the individual entertainment packs tend to get used up quickly and are ordered once a month from a range of suppliers. Multiple suppliers are used so that the content in the packs remains fresh and original for the kids to enjoy.
A highly automated operation, the current ownership works as little as six hours per week, focusing mainly on ordering stock, a task that could be outsourced to a virtual assistant. The current owner now has a VA who serves as the liaison to the 3PL and responds to all customer service inquiries, while an email marketing agency handles their email campaigns.
Marketing
Email marketing is a key aspect of their success and rising Repeat Customer Rate. With 70,000+ subscribers in their email database, their email newsletters have become a strategic success for upsells, and so has texting messaging to the 8,000+ subscribers in their SMS database.
The company also enjoys a high level of organic traffic – 50,000+ unique monthly visitors to their website – by posting fresh content on their blog once a week, and with more than 1000,000+ social media followers to engage with. The company puts up daily posts on all its social media channels, including use of video marketing, and they use influencers to help build brand recognition.
Sales are also boosted by running PPC ads on Facebook, Instagram, and Google, and they recently expanded to TikTok, where their products have proven to be very video friendly.
Having a secure footing in two lucrative fields and having become an expert voice on how to make family traveling more pleasurable, this brand’s loyal customer base is on the rise, and so are the number of wholesale businesses eager to buy from them. This is a business that would be easy to scale in multiple ways, and a buyer would start with their healthy recurring revenues and expanding audience as the perfect start to increasing profits.
