Website Closers® presents a compelling eCommerce Retailer that was founded in 2019. This unparalleled organic baby formula company has already shown over $12 million in lifetime sales and has simultaneously driven sales to a monthly run rate of over $1M with 15,000 active, repeat customers.
All inventory is purchased directly from approved European suppliers that have been properly vetted to ensure the best products at the best prices. These organic, healthy products are shipped directly from suppliers to a variety of fulfillment centers (both 3PL and a seller owned warehouse) in Europe and across the United States, where the orders are then shipped to customers.
This business is easily relocatable and will allow any new owner a great deal of flexibility from both location and scale perspectives. This company has numerous opportunities for growth immediately at hand, especially when considering their effective relationships with each of their current manufacturers. The business can be expanded to include ALL baby products, including baby cereals, baby food jars, snacks, etc. as the current manufacturers produce all of these items under the same brand names. In the right hands, this organic baby formula company can be significantly, rapidly and seamlessly scaled.
When your baby eats better, your baby feels better! Countless parents comment on how after switching to an organic European formula, their baby has less gas and reflux. Many parents also notice:
-More regular bowel movements.
-Resolved sensitivity issues.
-Reduced allergies or allergic reactions.
-Less fussiness from poor digestion and more smiles!
Organic baby formulas sold by this online company are made from the highest quality ingredients, using the highest standards in the industry. All ingredients are sourced from biodynamic farms, which allow livestock to feed on lush pastures and prohibit the use of antibiotics and pesticides. Other quality ensuring policies are considered in the choice of soil, planting and processing and are key considerations present in every organic jar.
All of the European made formulas are produced according to European Union, or EU, standards. EU standards for infant formulas are closer to the standards of drug companies and require much more from manufacturers and sellers than any guidelines set by the U.S. Food and Drug Administration, also known as the FDA.
Additionally, the formulas:
-Contain organic vitamins, DHA, and ARA to support a baby’s brain and eye development.
-Are free of pesticides and therefore help a baby to develop a stronger immune system.
-Are free of GMOs so a baby is less likely to develop allergies.
-Include all key vitamins and minerals found in breast milk thanks to over 50 years of breastfeeding research.
-Include lactose – the main carbohydrate found in breast milk.
-Support a baby’s energy with no additional sugar, sweeteners, or glucose corn syrup.
-Help develop strong bones, muscles, and organs thanks to organic proteins also found in breastmilk.
-Contain no corn syrup solids and are made with milk from cows and/or goats raised on organic farms.
-Support a baby’s digestive health with probiotics.
-Never contain taurine, L-Methionine, L-Carnitine, gluten, carrageenan, maltodextrin, artificial flavors, hormones, processed oils, or synthetic preservatives.
Because of the consumable nature of the products, seasonality is a non-issue and the working capital requirements are minimal due to high inventory turnover and favorable supplier terms. The current owners also utilize the Brex credit card, which provides 60-day credit terms.
This company sells three brands of European baby formulas. Currently, the opportunity only sells varieties of infant formula. However, these brands also produce a wide variety of other natural and healthy products that could easily be added to the mix, including jarred baby foods, baby cereals, kids’ juices, pregnancy products, and skin and bath products for babies, just to name a few.
From inception, the business model of this offering has been able to leverage advertising to significantly grow sales and obtain market share, while optimizing its supply and distribution chains. In just one year, monthly sales grew from $300.00 in March 2019 to almost $1.4 million by March 2020. Over this same time period, the management worked through a variety of supply and distribution logistical challenges to achieve the streamlined and optimized format now in place.
This company has gone through significant changes over the last six months as management has migrated its focus beyond just top line sales growth towards supply chain optimization and profitability. These changes have included the identification of multiple lower-cost suppliers, reduced transportation costs through partnerships with key shipping providers, and reducing unneeded or duplicative operational expenses.
Due to the company’s early focus on achieving growth and supply chain testing, rather than simply emphasizing the bottom line, TTM expenses and earnings results are not indicative of the optimized structure in place today. Using the current configuration and market share, as well as 15,000 active clients and a 75% recurring customer rate. This opportunity is now easily able to maintain over $1.1 million in monthly sales with a bottom line margin of approximately 20% producing annualized sales of over $12 million and earnings of approximately $2.8 million. It is for this reason that this lucrative business is being valued on the annualized earnings of the current business model as it shows stable sales and earnings.
This eCommerce Retailer Represented by:
Tech & Internet Business Brokers
Listing ID: WC2151