SBA Pre-Qualified Baby Products Brand | eCommerce & Wholesale Channels | 28% Repeat Order Rate | All Products Designed In-House | 2+ Decades in Business (Well Known Brand)

Pending

Website Closers® presents a 22-year-old, SBA Pre-Qualified eCommerce and Wholesale Brand that has established themselves as a trusted, well-known baby educational products company for both consumers and wholesale customers.

This business has received pre-qualification status for an SBA loan through our trusted lending partners, enabling eligible buyers to purchase the company with a minimum down payment of just 10%. The loan offers a 10-year amortization schedule with highly competitive interest rates, providing buyers with the opportunity for a quicker return on investment while benefiting from extended debt management terms—an advantage not typically available with standard commercial acquisition financing.

The brand launched in 2003 with their initial line of educational art cards. From there, they gradually designed and released additional products such as swaddle blankets, play mats, alphabet cards, and various wooden toys.

They now offer 222 SKUs, which are available across their website, Amazon, Faire, and their wholesale accounts. They have an Average Order Value (AOV) of $80 for their retail channel, an AOV of $350 for wholesale, and a Repeat Customer Rate of 28.12%.

The brand stocks 100% of their products at their warehouse in Florida, and they have $800k, or approximately 1 year of inventory, on hand. Much like other eCommerce brands, their sales peak during Q3 and Q4.

Their average customer is a well-educated parent of small babies and toddlers, who earns a high income and has an interest in art, education, music, and shopping. This consumer might browse a few times, spend $20 or less on their first purchase, and return 2.3 times, with a Customer Lifetime Value (LTV) of $120.

Business Broker Takeaways

1. Proprietary Products. The company designs all their products, and sources them from trusted overseas manufacturers. They have worked with each supplier for several years, proving themselves trustworthy and capable of meeting the company’s specifications. Their products are made exclusively for the company and no others to be sold under their brand.

2. Environmental Consciousness. Each of the manufacturers the brand works with has been chosen for their adherence to environmental and social standards such as ISO 9000, Forest Stewardship Council (FSC), and Global Organic Textile Standard (GOTS). Their natural, sustainable, and ethically made products have been an excellent asset for the company in an increasingly eco-conscious market.

3. Minimal Owner Involvement. Current ownership spends 20 hours per week on their responsibilities, consisting of accounting, troubleshooting, and coordinating their computer and online services. Sellers are willing to stay on as product designers.

The brand has 2 other employees outside of the sellers, with the first overseeing operations and the other handling the brand’s marketing. The minimal owner involvement operations required will offer a buyer ample time to focus on scaling.

Marketing

The company uses a variety of methods to advertise their products. These include social media, affiliate, SEO, and email marketing tactics that utilize the 17,000 active customers in their email database. They also have a keyword-enriched blog and supplement their strategies with Amazon PPC outsourced to an agency. Their campaign has led to an average monthly visitor rate of 10,170 to their website.

Scale Opportunities

There are a few ways that an ambitious buyer can scale this industry veteran. One of the most effective strategies they could take would be to improve their existing marketing campaign.

They could focus on Meta and/or Google advertising, as currently, all their active advertising is done through Amazon PPC. A buyer could also improve the brand’s social media channels, as the sellers struggled to get their social media marketing off the ground.

Additionally, the new owner could re-engage with foreign distributors. In 2021, the sellers decided to stop sending products to foreign distributors due to the high need of inventory and low payment times. By re-engaging with international distributors, a buyer could enjoy diversified revenue and access to a larger pool of potential customers.

Conclusion

This seasoned and reputable name in the toys for toddlers market has earned the well-deserved trust of many customers throughout the years. They have a wide variety of products to appeal to invested parents, and with eco-consciousness on the rise, they are in a prime position to scale with the right marketing efforts.

The current owners are also open to staying on as product designers post-purchase, allowing a buyer to continue releasing high-quality designs for continued growth.