Organic Baby Formula Ecommerce Company: High Rate of Repeat Orders
This company is an unparalleled organic baby formula eCommerce that has already generated $12 million in lifetime sales. It offers three brands of European baby formulas – Hipp, Holle, and Lebenswert – direct from suppliers to fulfillment centers earlier than shipped to customers. These organic, healthy products are made from the highest quality standards and are sourced from biodynamic farms that prohibit the use of antibiotics and pesticides. The company is open to selling 100% of its equity, but maintaining equity would be entertained for the right buyer. It currently has 15,000 active, repeat customers and boasts a monthly run rate of over $1 million.
OPERATIONS
Over the last three months, this company has focused on supply chain optimization and profitability. Tasks such as identifying multiple lower-cost suppliers, reducing transportation costs by partnering with key shipping providers, and reducing unneeded or duplicative operational expenses have contributed to this focus.
A variety of fulfillment centers, including third-party logistics and a seller-owned warehouse from Europe and the United States, stock and ship all their organic baby formula to their customers directly from their suppliers.
MARKETING AND KEY METRICS
This organic baby formula company markets itself as a high-quality, healthy option for parents seeking formula replacements. They advertise that European-made formulas are produced by the EU and are therefore closer to pharmaceutical quality standards compared to American-made formulas.
This organic baby formula eCommerce company’s current sales model and practices have led to a strong customer repeat rate and monthly sales run rate of over $1 million. As the company transitioned the focus towards supply chain optimization and profitability, significant changes have been put into place to reduce expenses and streamline the company’s operations.
This eCommerce company currently boasts a monthly run rate of over $1 million and has already generated $12 million in lifetime sales. They have 15,000 active, repeat customers and a customer lifetime value of 4-5 times that of their current product mix.
This company caters to parents and caregivers seeking an organic and healthy alternative to traditional baby formulas.
BUSINESS MODEL & RESOURCES NEEDED
This entirely online company has four employees and is not tied to a physical location. Its current operations make it possible for the current operators to relocate anywhere in the world.
THE INDUSTRY
This multi-brand organic baby formula eCommerce company falls under the baby food eCommerce industry. Other eCommerce companies under this industry include Little Spoon, Yumi, and FreshBellies.
OPPORTUNITIES TO SCALE
By extending their product mix to include items beyond infant formula, this company can increase their customer lifetime value by 4-5 times. Also, expanding their marketing and outreach to new parents could boost customer acquisition and lead to greater levels of success.
Asking Price: $8,750,000
Gross Income: $12,736,316
Cash Flow: $2,750,599
Year Established: 2019
Employees: 4
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