8-Year-Old Children’s Accessories Brand With $312K Revenue, $190K Profit and 61% Margin
Established in 2018, this DTC and B2B eCommerce brand sells children’s backpacks, travel bags, and accessories through Shopify, Faire, and direct wholesale relationships. The listing says 90%+ of traffic comes from organic sources, with minimal paid advertising.
The numbers: The $514K ask is based on approximately $312K revenue / $190K net profit, a 61% profit margin, or about 1.6x revenue and 2.7x profit. Inventory is not normally included in the asking price.
Why it’s interesting: Products include customizable and interchangeable backpack elements that the listing says contribute to repeat purchases. The primary supplier in China holds a utility patent and grants the business exclusive purchasing and distribution rights for specific product lines. U.S. and other trademark assets are also included in the sale.
What to watch: The business performs particularly well during the back-to-school season, making revenue and inventory needs seasonal. Buyers should also understand the economics and terms of the supplier relationship given the exclusive rights attached to specific product lines.
Worth asking: How much of annual revenue and profit is concentrated in the back-to-school period, what inventory investment is typically required ahead of that season, and what are the duration and transfer terms of the supplier’s exclusive purchasing and distribution rights?
