This US-based distributor offers top-tier brands of organic, premium, and GMO-free European baby formulas. Founded almost 3 years ago, the company already has over $3.7 million in sales and a 38% repeat customer rate.
The company sells multiple brands of formulas that cover each stage of a baby’s needs. It sources products from certified, registered suppliers in the Netherlands and in Germany, ships them directly to a 3PL fulfillment center, before shipping directly to customers and subscribers. The company has built a solid foundation on its 2 primary websites and no sales on any other channel, including Amazon.
All infant formulas are purchased from certified and registered suppliers located in the Netherlands and in Germany. In the US, they are shipped directly to a 3PL fulfillment center, where the orders are then shipped directly to customers and subscribers.
MARKETING AND KEY METRICS
There are numerous opportunities for growth immediately available within the current suppliers, including the expansion to include all baby-based organic products such as cereals, food jars, and snacks. Additionally, the company can grow with smart SEM & SMO plans, adding affiliate marketers, and expanding to other channels.
The company currently has 2 branded websites and has the rights to 27 additional, strategic domains that have yet to be developed. There is also an opportunity to expand to other channels at the right time, including Amazon.
Currently, the company has over 300 subscribers and a 38% repeat customer rate. Its average order value is approximately $115.00. As of February 28th, 2019 TTM earnings were $600k, a 30% increase in YOY earnings.
The company has over 300 subscribers and a 38% repeat customer rate. Its high-quality, premium baby formulas are in high demand from parents who prioritize organic and natural products for their babies.
BUSINESS MODEL & RESOURCES NEEDED
The company currently has three employees and is easily relocatable. Potential owners would have a great deal of flexibility from both location and scale perspectives.
The baby formula industry is part of the overall baby products industry that is valued at $55B in the US alone. The market is projected to grow at a CAGR of more than 7% between 2019-2025. The demand for organic and natural baby products is a major factor driving the growth of this industry.
OPPORTUNITIES TO SCALE
The company can be expanded to include all baby organic products, including cereals, 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, which has huge potential.
Asking Price: $1,725,000
Gross Income: $1,524,433
Cash Flow: $569,285
Year Established: 2016