Website Closers® presents a DTC eCommerce Brand in the Educational Toys vertical. The business quickly developed a fast-growing customer base, particularly among Millennials and Gen Z parents, who are giving glowing reviews to their audible flashcards, puzzles, activity cubes, and sensory blocks designed to promote early childhood development skills such as problem-solving, and motor and verbal skills.
The company’s top-seller, a workbook that enhances cognitive growth in toddlers, has received 13,470+ highly enthusiastic reviews from parents who say it not only works to build critical learning skills, but their son or daughter finds it fun and engaging to play with. The business has quickly developed a reputation as a pioneer in the field of early childhood education and how to get children to enjoy their products.
With a $68 Average order Value, the company is experiencing rising sales in the U.S., Canada, the UK, and other parts of Europe, and at peak sales time is shipping up to 200 orders a day. The business set out to help children explore, learn, and grow in an enjoyable and meaningful way, and now parents share that enthusiasm.
This is a simple and turnkey operation. The business does not stock costly inventory and instead has its products Dropshipped by reliable suppliers, which has given the Brand a reputation for quick deliveries and excellent customer service. The business works directly with trusted manufacturers that specialize in educational toys, books, and activity kits, and all products are designed to meet ambitious standards. Their top-selling workbook is uniquely branded with customized packaging which has enabled this business to develop a distinctive identity in this competitive vertical and to become a trusted source for educational toys.
The business has also demonstrated skill at using digital marketing to drive sales higher and expand its customer base, particularly social media marketing. The company has used its social platforms to promote brand storytelling and highlight its products, and this has given them 27,000+ followers on Instagram and an additional 10,000+ followers on Facebook. This has been driving sky-high levels of organic traffic to the Brand’s Shopify website, which in 2024 had a total of 1,105,449 visits, which averaged out to 92,100+ unique visitors each month. Mid-year promotions have also been successful at promoting upsells and attracting new customers.
The business has enjoyed rapid sales growth in a short period, and this simple, turnkey operation is ideally positioned for significantly higher growth in this enormously popular vertical. Thanks to the popularity of STEM education programs, educational toys are more popular than ever, and the global Educational Toys market was worth $54 billion in 2023 and is projected to grow by 12% through 2030. Parents and educators have become more cognizant than ever of the benefits of early childhood education that enriches the cognitive development of children, and the integration of technology into smart educational toys is propelling market growth.
That bodes well for this business’ future, and the acquisition provides a clear opportunity for a U.S. Buyer to acquire this company and scale it quickly. That could include expanding sales channels to include Amazon and Walmart and launching B2B sales targeting schools, daycare centers, and learning institutions. The company could also launch a parenting blog on its website and expand partnerships with parenting influencers to give this company significantly higher levels of brand recognition.
Business Broker Takeaway
We are excited about this business for 3 important reasons:
1. Turnkey Operations. The Brand’s Dropshipping model means they don’t need to maintain in-house stock for most products, although they do stock inventory selectively for best-selling products during peak seasons to ensure availability in the possible event of a supplier delay. But the percentage of items being stocked is very low. The business employs a team of experienced employees who manage orders, administrative tasks, product research, marketing, content creation, and influencer collaborations. That frees up the current owner to work as little as 5 hours each week on this business, focusing mainly on overseeing general operations, strategizing, and supervising the team. This highly automated business is primed to be scaled quickly.
2. Vibrant Customer Base. The company has proven to be especially popular with Millennial and Gen Z parents between the ages of 25 and 50 who prioritize early childhood education and hands-on skill development. These are parents and educators highly invested in early childhood development, engaged on social media, and active in parenting communities. The Brand has successfully partnered with popular parenting influencers with a focus on STEM-based and interactive education products for young kids. These influencers have played a key role in helping this Brand to expand its customer base and drive sales higher. Their products have also become popular gift items purchased by grandparents who want to get something special for their grandkids for birthdays and other holidays.
3. Diverse Marketing. Both social media marketing and influencer partnerships have helped drive higher sales, although the company has used additional digital marketing tools to leverage higher sales. That has included paid media with ads placed on Facebook, Google, and TikTok, and an email marketing campaign sent out to 46,000+ subscribers in their database, used for product launches, promotions, and customer re-engagement. The business also has its product pages optimized for search rankings and has an affiliate campaign that gives its affiliates and content creators the ability to generate revenue by promoting the brand on social media.
Conclusion
The company has quickly surpassed the popularity of traditional toys by focusing on ways to make early childhood development learning fun and interactive for the kids. The business has used its influencer partnerships and social media posts to build emotional connections with parents, educators, grandparents, and caretakers who are eager to give children a head start in learning. This has made them a trusted name in the field of educational toys, and their growing customer base, expanding sales, and high recurring revenue enable a new owner to hit the ground running when it comes to scaling this operation.
The business has huge opportunities by listing products on popular eCommerce platforms such as Amazon, and by expanding beyond DTC sales to target schools and businesses that provide care to young children, to launch partnerships that are beneficial to both sides. As STEM education becomes a stronger focus of young parents, this Brand’s head start in the field of educational toys suggests a new owner could make the business a genuine leader in this booming vertical.
