Backyard Chickens: Ecommerce Coops, Accessories & Chick Sales – 52% Repeat Order Rate
The Backyard Chicken eCommerce Business sells chicken feed, chicken coops, coop accessories, and live chickens. With remote staffing, digital management systems, and multiple eCommerce selling platforms, the company targets the high-growth phenomenon of backyard chicken farming. The company leverages a unique shipping process, including 71% drop shipping and 29% inventory. The average order value is $130. The eCommerce business has a repeat order rate of 52% and 95,000 active newsletter followers. The company provides pet poultry, supplies and gifts, and chicken coops. It is a 14-year-old profitable company with a strong consumer base.
OPERATIONS
There are 31 people working at the company, with only a cumulative 20 hours of work from the current owners. A Director of Operations is in place to run the company after closing, requiring basic customer service, eCommerce, and business development skills. Furthermore, the company has exclusive partnerships with key hatcheries and breeders that no other competitor has, creating a significant competitive advantage.
When sending live poultry to customers, poultry is sent directly from one of their partner hatcheries or breeders. The company stores and ships supplies and gifts from a company-owned warehouse, sourced from wholesalers and manufacturers. The company’s in-house chicken coops are exclusive designs developed and produced by a manufacturing partner while non-exclusive chicken coops are drop shipped by US-based partners.
MARKETING AND KEY METRICS
The company primarily sells via its branded website, with minimal Amazon sales. Moreover, the company runs PPC campaigns with dynamic ads on Google Shopping and leverages retargeting and remarketing in advertising. The company also runs weekly promotional emails to over 95,000 opt-in contacts. The company has a record of excellent profit margins in each advertising medium.
The company primarily sells via its branded website. The nearest option for growth is Amazon sales. The company has a record of excellent profit margins on Amazon, and growth through Facebook advertising, actively using SEO practices, strategic partnership development, and gift marketing.
52% repeat order rate, $130 average order value, 95,000 active newsletter followers
The customer base is comprised of consumers within the pet, sustainable living, and lifestyles community who raise backyard chickens. As stated, there is a very high repeat order rate of 52% and 95,000 active newsletter followers. The business’s innovative shipping process is one of the reasons that the consumer base is sticky to the brand.
BUSINESS MODEL & RESOURCES NEEDED
There is a low turnover rate among employees due to their passion for both the products and the brand, and no previous knowledge of chickens is required of a new owner. Full training can be provided to employees as the current owners only require a cumulative 20 hours per week. Current staffing consists of 17 customer service representatives, 3 customer service managers, 1 director of operations, 1 fulfillment manager, 3 fulfillment staff, 1 designated buyer, 1 director of marketing, 1 director of business development, and 2 bookkeepers.
THE INDUSTRY
The industry is the eCommerce agriculture business that targets the highly profitable backyard chicken farming vertical. The company provides a range of products from chicken feed, coops, coop accessories, and live chickens. Targeting the pet, sustainable living, and lifestyles community the company leverages a unique and successful shipping process with a mix of in-house and dropshipping that creates an excellent average order value.
OPPORTUNITIES TO SCALE
Possible areas for growth include SEO development, extended pet offerings, and refined sales channels. For instance, the business can leverage social media, Facebook advertising, and strategic partnership development to expand sales. The company can create digital and physical partnerships to extend its catalog and sales network. Additionally, the business can focus on new product development, including gift marketing and extended pet offerings.
Asking Price: $3,500,000
Gross Income: $5,693,680
Cash Flow: $771,451
Year Established: 2006
Employees: 29
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