SwaddleDesigns

Transitional Swaddle Sack Ramp-up

Seattle, Washington

https://www.SwaddleDesigns.com

Total Raised
$268,372.50
Total Payout
$288,090.00
Instructions

Inventory Inspection Type

7.34% Co-Op Profit Margin $2.39 profit per pack

4 MonthsDuration

80%PSC

Purchase Methods

The co-op program will be used to purchase Transitional Swaddle Sacks with a wholesale value exceeding $550,000. Over 80% will be purchased by Amazon. SwaddleDesigns has two first-party (1P) relationships with Amazon.  We have a primary Amazon relationship under the SwaddleDesigns brand and a secondary relationship under Amazing Baby by SwaddleDesigns brand exclusive program.

Over the past year, the Amazing Baby Transitional Swaddle Sack assortment has become a category bestseller. This Co-op includes SwaddleDesigns and Amazing Baby branded TSSs. The Amazing Baby Transitional Swaddle Sacks will be sold exclusively to Amazon, and the SwaddleDesigns TSSs will be sold to Amazon, Target, other retailers, and to consumers via our web site.  

Over the past two years, our sales on Amazon have outpaced our working capital capabilities and we have experienced extended periods with minimal inventory leading to OOS situations where we must cancel Amazon POs. 

In July, we received 18,760 Transitional Swaddle Sacks from our factory and within four weeks, we shipped over 85%.  Thirty days after receiving the July shipment, 7 of 12 SKUs were out-of-stock.  This recent example highlights Amazon's order velocity and the consumer demand related to the Transitional Swaddle Sack.

Our China factory has completed production of 20,000 Transitional Swaddle Sacks and a container with these 20K units will ship on August 26th. The remaining units will ship in September. We anticipate no issues related to production. The first container will arrive at the Tacoma port and within days the container will be delivered to our Seattle warehouse, and within days, we will ship a major order to Amazon.

Given Amazon's August PO quantities and consumer sell-thru, we anticipate the 80% milestone to be achieved in less than 10 weeks. 

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