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DTC eCommerce Brand in the Chicken Coops & Accessories Sector – Strong Sales Growth in the TTM – Shopify & Etsy Sales Channels

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Website Closers® presents an eCommerce Brand that was originally started up in 2015 to provide premium Backyard Chicken Coops direct to consumers. And while they were positioned superbly during the Pandemic, the demand for raising backyard animals grew as people stayed at home more, and many children were home schooled. But this is not some fly-by-night COVID Bump Story – actually – even though they saw great success during the Pandemic, they continue to grow to this day. The Sales Results tell it all, where they have seen a 19% growth rate when comparing 2021 to the last twelve months (through September 2022). Even more, their discretionary earnings are up 35% for that same comp period.

With products managed specifically for this brand and multiple sales channels available to their customers, the company is riding this growing industry to increasingly higher profitability. And there’s no question this brand has a far larger customer base to target, including launching B2B sales to the wholesale market for the first time and expanding into eCommerce Marketplaces.

With processing plants experiencing temporary shutdowns during the pandemic that raised poultry prices, more and more people sought an alternative to paying higher prices for their poultry by raising chickens in their own back yard. Suddenly the public was producing their own farm-fresh eggs, and hatcheries become inundated with new orders for chicks to raise. All indications are that the demand since 2020 has been unprecedented, and this brand is a clear indication of why this vertical has become such a lucrative industry.

People are Looking for ESG Products While backyard chickens make for fun pets for children, and a great learning experience, they also offer a number of advantages for the environmentally friendly. Chickens are omnivores by nature, eating pests that cause damage to plants, like grasshoppers, beetles, grubs and larvae. Chickens have been used as a natural <insecticide= for a number of years – they are highly effective at removing pests from flower and vegetable gardens.

Additionally, chickens are great for <bio-recycling=. Consumers increasingly want to operate their households on a zero-waste stream basis where no materials leave their home that can be added to a landfill. On average, each chicken can eat more than 2 pounds per month of vegetable matter and table waste. Additionally, the waste byproduct of a chicken is very high in nitrogen, perfect for future fertilizers.

And of course – there are eggs. Instead of buying your eggs from a massive enterprise factory farm that raises chickens in cramped cages pumped full of antibiotics, you can raise your own chicks, control their intake, and create as many eggs as you want. The average egg-laying chicken will lay 1 egg per day – and if you raise 12 chickens at a time – you’ve got a dozen eggs every day! And since the chickens forage for their food in open spaces, free from massive enterprise, they are packed full of nutrients and usually much larger.

What about the Coops? The chicken coops sold by this company are manufactured specifically for this brand, are strong, high quality, and provide comfortable room for egg production while also creating a safe place for backyard chickens, ducks, quail, or pheasants. Sturdy and made from a non-splintering fir timber, their coops can be repainted and have a sliding door with a metal handle. At an Average Order Value of $1,200, the company is now processing up to 50+ orders being shipped daily.

With demand for their coops rising, the company has diversified its product line to include chicken egg aprons that are hand sewn and contain original art. These are available in both adult and kid sizes. They have also increased their Repeat Customer Rate by upselling third-party automatic chicken doors at checkout.

The business was originally launched to sell products on their website (Shopify Platform). However, they have since expanded and now sell on Etsy as well. This has contributed to higher profits in the past two years, with their earnings increasing by a whopping 35% from 2021 to the last twelve months through September 2022.

At the same time, this is a highly automated business that won’t significantly tax a new buyer will a heavy workload. The current ownership spends just 10 hours per week operating the company (although of course, more would need to be spent by a buyer if she desires to grow the company). The two main tasks are customer service (the company receives a modest 10 customer service inquiries daily) and order fulfillment.

The company stocks about 70% of their products, with new inventory orders placed three times per year. This is a smooth and efficient operation that practically runs itself; the ownership does not need the help of any employees at this time.

The company has multiple sales channels. Marketing is Firing on All Cylinders. Relying primarily on PPC ads on Google and an SEO program that takes maximum advantage of popular keywords to strengthen their ranking in search engines, the company has done an exceptional job driving traffic and conversions. Their user-friendly website uses premium photos to highlight the wonderful designs of their coops, and they maintain an informative blog to boost their organic traffic.

It’s working. The company now averages 12,800+ uniquely monthly visitors to their website, although in 2022 those numbers increased sharply to 18,900+ monthly visits – another clear indication of how their customer base is growing.

A related example is their email database, which has 14,100+ subscribers and is also growing. It’s a great source for promotions, special deals and upsells. The company is well positioned to scale rapidly. In addition to targeting the wholesale and retail sectors for new sales, the company could easily expand sales onto new platforms such as Amazon and Walmart, launch an aggressive new social media marketing campaign, and employ affiliate programs, which are easy to manage on their Shopify website.

While shopping trends frequently come and go, the demand for backyard chickens keeps rising and industry experts predict this one will be around for a while, picking up speed as each year passes. This eCommerce business was truly in the right place at the right time as this trend started accelerating, and is now enjoying higher brand name recognition for their unique products and terrific growth potential.

This eCommerce Brand is Represented by:

WebsiteClosers.com

Tech, Internet & eCommerce Business Brokers

WC 2837

Asking Price
$ 2,300,000
Cash Flow
$ 575,160
Gross Income
$ 2,506,871
Year Established
2015

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