Profitable Chicken Coop Accessories eCommerce Brand with Strengthening Sales in Shopify and Etsy Channels
This eCommerce brand provides premium backyard chicken coops and accessories directly to consumers. With a growing industry and expanding customer base, this company has seen strong sales growth and promising profitability.
OPERATIONS
This highly automated business requires only 10 hours of work per week from its current owners. The primary tasks include customer service and order fulfillment, with inventory orders placed three times per year. The company operates on multiple sales channels, relying on PPC ads, SEO, and email marketing to drive traffic and conversions.
The company stocks about 70% of their products, with new inventory orders placed three times per year. They use strong, high-quality, and non-splintering fir timber for their chicken coops, and egg aprons are hand sewn and contain original art. This efficient operation practically runs itself and does not require any employees at this time.
MARKETING AND KEY METRICS
The company relies on PPC ads on Google, an SEO program, and an informative blog to drive traffic and sales. They have a large email database for promotions and have upsold third-party automatic chicken doors at checkout to increase their repeat customer rate. They have also diversified their product line to include chicken egg aprons.
The company sells products through their Shopify website and expanded onto Etsy as well, contributing to higher profits in the past two years. They could easily expand sales onto new platforms such as Amazon and Walmart and employ affiliate programs to further grow the business.Online Market’s growth strategy involves expanding its sales channels through partnerships with other e-commerce platforms. The company also plans to invest in advertising and marketing campaigns to reach new customer segments.
The company has seen a 19% growth rate when comparing 2021 to the last twelve months (through September 2022). Their discretionary earnings are up 35% for that same comp period. They have an average order value of $1,200 and process up to 50+ orders being shipped daily. They have a growing customer base, with 12,800+ monthly unique visitors to their website and an email database of 14,100+ subscribers.
The company targets individuals who desire backyard chicken coops and accessories, as well as those who want to become more environmentally conscious and own farm-fresh eggs. They also target the wholesale market by selling bird-friendly accessories.
BUSINESS MODEL & RESOURCES NEEDED
This eCommerce business does not require many employees, with the current ownership only spending 10 hours per week operating the company. However, a new buyer would need to spend more time growing the business if desired.
THE INDUSTRY
The demand for backyard chickens continues to rise, especially since the pandemic resulted in temporary poultry plant shutdowns and raised prices. The company has capitalized on this trend, which is predicted to continue with more people becoming environmentally conscious, looking for zero-waste stream options, and desiring farm-fresh eggs. The company also targets the wholesale market, selling not only chicken coops but also other bird-friendly accessories.
OPPORTUNITIES TO SCALE
The company could target the wholesale market and retail sectors for new sales, launch an aggressive new social media marketing campaign, and expand sales onto new platforms such as Amazon and Walmart. They could also employ affiliate programs and add more products to their line to increase sales.
Asking Price: $2,300,000
Gross Income: $2,506,871
Cash Flow: $575,160
Year Established: 2015
Employees: 0
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