Website Closers® presents a fast-growing DTC eCommerce Business that provides their own brand of ride-on products for children, all with captivating designs for preschoolers and school-age kids alike. This business is a nationally recognized brand known for its innovative product line and customer satisfaction, boasting of being the largest in its category for ride-on kids toys. Operating as a 100% DTC business, the brand offers 25 active SKUs and holds a valuable trademark for its brand.
This company helps parents win “dad and mom of the year awards” by providing their kids with a product and experience they wish they had as kids. The company gives parents the opportunity to focus on other things while their kids are in a learning phase for hours as opposed to sitting on the couch with video games. Their toys are designed to help children develop independence and motor skill functions, all while having fun being outside … where kids thrive through creativity and joy.
With the results showing a 100%+ year-over-year growth rate and 20% net margins, this business shows remarkable financial health and cash flow, ready for scale. Since the business currently only sells on its branded website, its marketing efficiency is underscored by a total advertising cost of sale (TACoS) of less than 8% and a return on ad spend (ROAS) of 9.3X. The average order value stands at $703, reflecting the high demand and pricing power of its products.
The Company
Founded in 2021, the company boasts a fully staffed operation with 1 manager, 2 specialists, and 4 customer service representatives, all working a full-time role. Extensive standard operating procedures (SOPs) are in place, ensuring a seamless transition for new ownership. Its product line includes a wide range of products that are carefully crafted for the ultimate playtime experience ensuring both safety and enjoyment for children.
The company’s mission is to provide high-quality, engaging toys that encourage outdoor play and help develop children’s independence and motor skills. By focusing on products that foster family bonding, the business has built a dedicated customer base among parents and grandparents looking for durable, innovative toys.
The company operates solely through its DTC online platform, which has allowed it to maintain a lean and efficient business model. This approach ensures that customers receive a seamless shopping experience, from browsing to delivery. The company’s digital marketing strategy, which includes Google Ads, social media campaigns, and search engine optimization, has been instrumental in driving traffic and sales to its website
Looking ahead, the business has identified several growth opportunities. These include expanding into wholesale, third-party marketplaces, and retail partnerships, as well as exploring international markets. The company’s ability to adapt and innovate positions it well for continued success in the dynamic ride-on toy industry. This is an unparalleled opportunity to step into a thriving, well-established business that is primed for continued growth and success.
Business Brokers Takeaways
Our analysis of this business shows that the value propositions present are decisive for a first-time buyer looking to get into the online space. We are excited about this business for 3 important reasons:
• Strong Market Position and Rapid Growth: This company is one of the fastest-growing in its niche. With massive YOY growth and strong margins, the business is in the perfect position to take on new ownership that has experience building brands in places like Amazon, Online & B&M Retail Wholesale, and other sales channels.
• High-Quality, Innovative Product Line: The company’s product range includes technological advancements available exclusively through their site. These high-quality, innovative products not only meet safety standards but also provide significant value and enjoyment to customers, setting the business apart from competitors.
• Efficient Operations and Scalability: The business is fully staffed with a flexible owner workload, supported by extensive Standard Operating Procedures (SOPs) that facilitate a smooth transition for new ownership. Additionally, strong organic sales and a low Total Advertising Cost of Sales (TACoS) of less than 8% indicate a well-optimized and scalable operation.
