baby products

3 Baby & Kids Ecommerce Sites: 10 Years of Success Selling Baby Products

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This company is a parent company of three seasoned websites that specialize in high-end baby and children’s products. The eCommerce business sells anything and everything that parents need in the baby and toddler market, and it has over 9000 SKUs lined up. The company enjoys high volume sales with 2018 sales over $5m and TTM earnings over $380,000, and it requires a minimum time investment from the owner. The business requires only 20-30 hours of work per week, requires limited overhead, and has approximately 50% drop-ship fulfillment.

OPERATIONS

The company primarily runs via eCommerce and direct to customer sales through its three main websites and 5-star Amazon store. Overcoming limited overheads, 50% drop-ship fulfillment, and a workflow of only 20-30 hours per week, the company has managed to secure and maintain a well-rounded, exclusive offering lineup comprising over 9000 SKUs.

Approximately 50% of the business needs drop-shipping, while favorable vendor terms imply minimal working capital requirements. The business has constructed an extensive product lineup consisting of high-end baby and toddler products, including everything from strollers and baby beds to nursery wall art, toys, clothes, and children’s books.

MARKETING AND KEY METRICS

The company’s marketing focus is on the fair division of sales between Amazon (approximately 50%) and its three websites. The existence of an email database of approximately 50,000 email subscribers and 10-15% repeat customers underscores the limited direct marketing opportunities the digital company has tapped. It is also natural for the business to consider expanding its presence and ROI in other channels such as Etsy, Walmart, Pinterest, and international Amazon marketplaces.

Apart from its established dominance in Amazon sales, the company is a natural choice for expansion into other market-leading channels such as Pinterest, Etsy, and Walmart, all of which have significant growth potential. While their direct marketing initiatives could use some improvements, the company has significant untapped potential in this avenue.

The internet company sells anything and everything that parents need in the baby and toddler market. It enjoys generating high volume sales and earnings with the 2018 sales reaching $5m and TTM earnings over $380,000. The average ticket price of the eCommerce business is around $450 per sale. The email database has approximately 50,000 email subscribers and a repeat customer rate of 10-15%.

The company has over 50,000 email subscribers and 10-15% repeat customers. Without any direct marketing initiatives in place, the email database stands as a testament to what the business can achieve in potential sales. The company has a diversified mix of both Amazon and several other websites.

BUSINESS MODEL & RESOURCES NEEDED

The company has four employees, and its workload is around 20-30 hours per week. The company’s books are pristinely clean and have been well-documented, representing an excellent opportunity for a qualified entrepreneur with as little as 10% down and a 10-year amortization period to make use of our Lending Partners at Website Closers.

THE INDUSTRY

This business is one of the highest performing businesses in the baby and children’s high-end consumer products vertical with over 9000 SKUs lined up and an excellent set of value-added baby products and services. Some of the industry verticals are baby strollers, nursery wall art, toddler clothes, baby furniture, children’s books, and toys.

OPPORTUNITIES TO SCALE

The business is a turn-key opportunity with clean records and low overhead costs, making it an excellent addition to any pre-existing eCommerce retail portfolio. Apart from its already impressive product catalog and high-performing sales, the company has room to add even more products and styles from its existing suppliers, offering outstanding potential for future growth and scalability.

Asking Price: $1,250,000
Gross Income: $5,334,596
Cash Flow: $382,992
Year Established: 2002
Employees: 4

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