Explosive DTC Ecommerce Ebike Brand with Proprietary Models and 28% NET Margins on 68% YOY Growth and 60,000 Monthly Visitors
A flourishing company in the eBike Vertical primarily selling directly to consumers from its website. The company offers affordable and practical solutions during a time when fuel prices soar, public transport becomes more expensive, and living costs escalate. With 60,000 monthly site visitors, the brand sells proprietary bikes and exclusive designs. It has 28% Net Margins on 68% YOY Growth. The customer base has changed considerably, catering now to seniors, teens, and women.
OPERATIONS
The company operates from office space in the back of its small New York City showroom, where customers can view and test the range or have their bikes serviced. It works closely with its Asian manufacturer, who designs the bikes exclusively for the brand. Management makes a wide selection of add-ons available, including luggage racks, safety locks, LCD displays, and kickstands. Orders are received via a Shopify-built website and fulfilled by a 3PL. Logistics involves sending out eight to ten orders on a typical day, with spikes during certain seasons and holidays.
The business works closely with its Asian manufacturer, who designs the bikes exclusively for the brand. An excellent relationship exists between both parties, and deliveries have been reliable even through tumultuous global supply chain woes. Desirable payment terms have been effectively negotiated by the owner.
MARKETING AND KEY METRICS
The brand relies on digital marketing platforms such as Facebook, Instagram, and Google Ads to reach an audience of millions. With the proliferation of influencers and streaming platforms, this company could unlock significant revenue by partnering with YouTube and TikTok influencers. Affiliate marketing also presents a potentially lucrative endeavor, particularly considering the quality of the brand and the incredible growth in this vertical.
Currently, 98% of sales are made in the US. There is potential for this company to launch internationally or license its products, with incredible success. A focused move into wholesale could also level this business up. Platforms such as Amazon present another potential sales channel for this brand.
The brand has 28% net margins on 68% YoY growth. The average initial order approaches $1,700, with most buyers adding at least $80 worth of accessories shortly after. Recent data shows a noticeable increase in customers purchasing more than one e-bike at a time. Replacement parts comprise additional repeat business, increasing customer lifetime value. The traditionally slower sales months have been negated somewhat by shrewdly increasing inventory sales to distribution and brand partnership channels.
The customer base has diversified to include seniors, teens, and women. The average initial order approaches $1,700, with most buyers adding at least $80 worth of accessories shortly afterward. Additional repeat business comprises replacement parts such as lights, tires, and replacement keys, increasing customer lifetime value, and bringing in a steady income stream aside from the hero SKUs. Recent data shows a noticeable increase in customers purchasing more than one e-bike at a time.
BUSINESS MODEL & RESOURCES NEEDED
The owner endures a light workload, and only two employees are required to manage this growing business. Their efforts involve operations and customer support, allowing the current owner and a prospective buyer to focus on scaling up the brand. Additional contractors assist primarily with mechanics, customer service, and order fulfillment.
THE INDUSTRY
The eBike industry is rapidly growing as more people seek affordable and practical solutions during a time when fuel prices soar, public transport becomes more expensive, and living costs escalate. The customer base has changed such that now seniors, teens, and women own these products. The global eBike market size exceeded $23 billion in 2018 and is anticipated to surpass 130 million units by 2026.
OPPORTUNITIES TO SCALE
This brand offers diversification opportunities in terms of its product. Sophisticated advertising tactics such as SEO, PPC, and social media marketing remain underutilized; additional sales channels like Amazon and retail store placement could increase revenue. With proprietary branding and increasing brand awareness, its products could command a premium price. International expansion, licensing prospects, and moving into the wholesale market also offer revenue growth potential.
Asking Price: $5,700,000
Gross Income: $4,508,282
Cash Flow: $1,267,808
Year Established: 2018
Employees: 5
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