Facts and Figures
The business is an Australian based baby beanbag business. The businesses exists with the purpose of creating the safest seating solution for babies, so that they can sit upright from birth, and enjoy the world around them. Products can be ordered online and can be shipped worldwide, with Australia being the main focus, and the USA being a virtually untapped market to date.
The products unique ability to swap from a baby seat (harnessed, for use from birth) to a toddler seat (unharnessed) makes it possibly the only product in the world that can be used from birth to pre-teen.The designs are created in-house, and are exclusive to the brand. There are also accessories for the bean bag, including a foot muff and rocker. This makes for a very interesting opportunity in a niche market.
- Customer support (1-3 hrs/wk); about 5 tickets per week. Most are about how to open the bean bag to insert filling, as there is no zipper pull and they don’t read the label information or enclosed booklet.
- Planning and purchasing new inventory (0-5 hrs/wk); The hard part (product creation and establishment) has been done. Now, it is up to the owner if new items are to be introduced to complement the beanbag item, or create a completely new category to add to the brand. The parts are manufactured in China and the lead times can be between three to four months from ordering of all parts to shipment of goods, as they are made exclusive to the brand
- General Administration (0 hrs/wk); the basic bookkeeping is currently done by a freelancer
Fulfilment and Assembly
- Fulfilment: All orders are fulfilled in-house as the vendor’s partner owns a warehouse. 3PL is the ideal scenario for worldwide distribution and flexibility for the new owner unless they already operate out of a warehouse and currently fulfil orders. Thank you emails, order confirmations, tracking information and review requests are sent automatically.
- Assembly: Can be done either of 2 ways: (1) The seat color chosen is picked and packed into the bag that contains the chosen beanbag (current way) or (2) Be packaged as a complete set by China manufacturer with seat colors before shipment to warehouse/3PL facility (previous way for over 9 years)
Marketing and Business Development
- Marketing, (0-5hrs/week). There is high potential for growth for someone with experience in marketing
- Business Development (0 hrs); currently no time is spent on business development. There are interesting options to explore such as partnering with web shops and resellers for other sales channels.
Customer Profile and Segmentation
- Our target market is 25 to 40 year old females.
- 50% are expecting/had a baby
- 50% are purchasing as a gift for someone they know who is having/had a baby
- 99% of our customers are from Australia. Huge expansion opportunity within the USA for someone with marketing experience or existing clientele in baby sector.
- Customer have been mostly acquired organically.
- 75% of Social media is via Facebook
- While direct traffic driven by SEO represents 22.8% of the total traffic (AU FY2017-18)
- Not a lot is done for customer retention.
- The mailing list currently has 5500 active subscribers.
- Private-label products in the evergreen and highly desirable baby sector
- Health benefits: Designed to prevent reflux & flathead in babies and widely reviewed for this
- Freedom to run business from anywhere in a world, using a 3PL facility or within an existing warehouse
- Compact item (about 960pcs per 12cbm)
- Multiple potential ways to grow business worldwide by expanding into similar markets, plus expanding through other sales channels
- Exclusive designs
- Territory focused websites, including Australia, USA and New Zealand
- Low time commitment
- Long term, trusted and reliable manufacturing partners
- Long term, trusted and reliable product design partner
- Long term, trusted and reliable developer partner
- IP protection and trademark ownership worldwide
- Sale conversion rate ranges between 2-6%
- Return rate <.5%
- Strong customer satisfaction
- Soft packaging minimises potential damages to stock in transit.
- 1st page SEO ranking for “baby bean bag” geo specific to Australia.
- Introduce the product to Amazon FBA in the US.
- Unlimited growth potential via marketing/exposure
- Partnering with online marketplaces, resellers and expanding wholesale sales avenues
- Influencer marketing
- Expand product offering (‘not yet released’ product & designs included)
- Supply chain ready (Walmart & Costco etc)
- Minimal exposure to USA & Canada audience
- Amazon FBA or SFP
- Over 3.8m babies born each year in USA alone, so potential growth is unlimited!
- Branded so that new items can be added without needing to complement the existing range.
NOTE ON THE FINANCIALS: All figures displayed on the platform are seller discretionary earnings displayed in a month by month context. These figure are intended to be a high level overview of the potential month by month earning potential of the business in it's current state, they are thus simplistic so please refer to P&L's for more in depth analysis.
After one of the partners in the business decided to leave in order to create his own entity in home renovations, the remaining owner has found it hard to maintain the business. This impacted sales and time management. With zero experience in marketing the current owner knows that it’s a great time to sell the business, and allow a buyer to take the business to the next level.
It’s a very simple product to sell if it has the exposure it requires, and has enormous growth potential. When the focus was only on this business, with two partners running it, it was very lucrative. To this day, visitor-to-conversion ratio is enviable. But due to lack of know-how and attention to maintaining an online presence, traffic has dropped. The belief of the current owner is that by generating targeted traffic, sales will increase. The site has never had less than 1 sale per 30 visitors, and the last few months have seen it much better at 1 in 20 visitors with very minimal SEO and Google Ads. So whilst the traffic has become more credible, it has decreased and this is largely due to changes in the Google algorithm. Due to the loss of the co-owner, it became too much for the remaining, time-poor owner to handle, let alone understanding the new algorithm and undertake marketing campaigns.
The current owner believes that the ideal buyer will be USA based, with experience in marketing to a USA audience as we notice the buying patterns between countries varies. The brand is well established in Australia and has a healthy returning customer base. Minimal marketing can easily create new customers. Owner owns their own warehouse, so they have always picked and packed on-site. The business can easily be transitioned to a 3PL with no hassle and current owner can help with this.
There are only about 300k babies born in Australia each year, as opposed to 3.8m in the USA. So the potential in the USA is huge for someone who understands marketing or has an existing retail client they can sell to.
Anyone with good business and marketing sense will see this is a golden opportunity. The current owner regrets this sale and has held on with the hope they can build it to where it should be. It has become apparent that they do not possess the skills and time management to do this. This has not been an easy decision, but it’s a necessary one.
Current owner would provide 3 months ongoing support as required.
- Supplier relations
- Inventory at time of closing
Post sale support
This is support provided by the seller when transitioning the business to a buyer.
About the Seller
Paulitta was always determined to make her mark on the world. She never knew it at the time, but the years she spent rifling through home design magazines in the early 90’s woke a spirit in her that craved design and authenticity. A bit of a rebel, she wanted to jump straight into creating her own products, and by 30, had launched 5 different brands. But one stood out and took up all of her time. So she quit the rest to focus on her this venture. After 13 years on this project, she is now keen to study marketing and launch a new homeware's business.