Organic Baby Formula Ecommerce Retailer: Over 300 Subscribers and 38% Repeat Customer Rate
This US-based company distributes top-tier, premium, organic, GMO-free European baby formulas directly to consumers through their two primary websites. They offer products covering each stage of an infant’s needs. Despite being founded under three years ago, they have already booked $3.7 million in lifetime sales and over $1.2 million in earnings, with a 38% repeat customer rate. They currently have over 300 subscribers and TTM earnings of $600k. All infant formulas are purchased from certified suppliers in the Netherlands and Germany, then shipped to a 3PL fulfillment center before being shipped directly to customers and subscribers.
OPERATIONS
This business is easily relocatable and allows for flexibility from both location and scale perspectives. The Company has numerous opportunities for growth immediately at hand, especially with the current suppliers. The business can be expanded to include ALL baby products, including baby cereals, baby food jars, snacks, etc., as the current suppliers carry all of these items under the same brands. Additional growth opportunities include the development of smart SEM & SMO plans, adding Affiliate Marketers, and expanding to other channels.
All infant formulas are purchased from certified and registered suppliers located in the Netherlands and in Germany. They are then shipped directly to a 3PL fulfillment center in the United States, where they are then shipped directly to customers and subscribers.
MARKETING AND KEY METRICS
The company’s marketing strategy includes having two primary websites, social media channels, and email marketing to attract and retain customers. They rely on affiliate marketers and SEO to improve visibility and growth.
The company solely relies on its two branded websites for sales, but they have additional growth opportunities, including affiliate marketers and other channels.
The company has over 300 subscribers with a 38% repeat customer rate. They have generated $3.7 million in lifetime sales and over $1.2 million in earnings. TTM earnings reached $600k, which was a 30% increase compared to the previous year. The average order value is approximately $115.00.
The company has over 300 subscribers who are parents or affiliates who purchase organic baby formula from the company regularly. The target market includes parents who prioritize healthy and organic products for their infants.
BUSINESS MODEL & RESOURCES NEEDED
The company has three employees, and the business is easily relocatable with a lot of flexibility from a location and scale perspective.
THE INDUSTRY
The organic baby formula industry is a rapidly growing market that is becoming more popular among parents because of the benefits of using organic products. Other companies in this industry include Baby’s Only, Hipp, Lebenswert, and Plum Organics. According to the global organic baby formula market report, this market is expected to grow at a CAGR of 10.6% from 2020 to 2025.
OPPORTUNITIES TO SCALE
The company can expand its product range to include other baby products, such as cereals, snacks, and baby food jars. They can develop SEM & SMO plans, add affiliate marketers, and expand to other channels. Additional growth opportunities include expanding into additional geographic locations.
Asking Price: $2,100,000
Gross Income: $1,641,172
Cash Flow: $599,733
Year Established: 2016
Employees: 3
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