A SellerForce® offering, this eCommerce company has products that are very popular with children – which means the company itself is very popular with the ones who count the most: parents.
Launched in 2017, this company has become a popular brand for its muslin baby blankets that are printed with original and colorful designs. These unique designs have enabled this brand to stand out in the competitive field of baby products. Their SKUs are manufactured directly for this brand and are known for their softness and high quality.
The company has become a solid Amazon seller. With an Average Order Value of $17, their profit margins are rising as more and more families discover them. Customers have found their products even though the company has not invested in any kind of marketing campaign, which represents a massive opportunity for a buyer eager to scale this operation.
The company is certainly operating in a profitable niche space. There is an increasingly high demand today for newborn baby blankets, and, even more, these products are recession-proof since parents want the absolute best for their newborns. The global baby products’ market size was valued at $214.13 billion in 2021 and is projected to continue growing by 5.7% through 2030. The easy availability of premium baby products on online sites is driving sales higher as well.
Amazon has proven to be a very strong platform for the company. Their products are now available in 13 countries through Amazon, including the U.S., United Kingdom, Germany, Australia, and Singapore. All products are conveniently shipped through Fulfillment by Amazon, and since they market small products, their shipped costs are low.
Their products are sourced from a reliable manufacturer that the company has a trusted relationship with, and the manufacturer stores their stock at no extra cost. This brand has an NDA with its supplier, guaranteeing that the manufacturer cannot share designs or any other relevant information with anyone else. All products are manufactured exclusively for this company, which owns the design patterns and printing films stored and used by the manufacturer.
Only the minimum required quantities are shipped to FBA monthly to keep the FBA costs low. The brand also has trademarks with the US Patent and Trademark Office.
As their sales have gotten stronger, the company has been able to expand and create new products, including four-layer crib blankets and baby wearable blankets that serve as sleeping bags. Their products are lightweight and do well in the summer months, although there is no seasonality to their crib blankets and sleeping bags.
Their customer demographics are strong and include young families, parents, and grandparents buying for newborns. Their products have also become popular as gifts for baby showers and birthdays of newborns.
The company has also received strong feedback from parents who note that their children love the blankets and have asked for more of them – a very strong endorsement that has helped to give the company excellent word-of-mouth referrals.
This is a highly automated business. The current ownership devotes no more than 8 hours per month to running the business, having streamlined operations as much as possible. The owners have no employees on staff. Most of the daily tasks – including processing orders, shipping, and customer service – are managed by Amazon.
There are massive scaling opportunities available to this company. Because of its clear success on Amazon, the company could shift to additional online platforms such as Walmart and eBay, introducing their products to the millions using those sites.
A buyer could also continue to introduce new, related baby products, including ones with new designs, and expand into other nursing and bedding products that customers are looking for.
Undoubtedly, the primary growth opportunity of this business is marketing. The owners have not invested in any marketing to date. The buyer could invest in running PPC ads on Amazon and Google, launching their first SEO campaign that includes a blog on their website, and launching social media marketing campaigns. Each one would likely send this brand’s profits skyrocketing.
The company could also start collecting emails on its website and use that for a strong email marketing campaign.
Parents can be very selective buyers, but when they find something they like, the profits can soar – as they did for this company. Contact SellerForce today to learn more about how this offering won over the hearts of so many happy babies – and their parents.
Listing ID: SF 129
