Electric Bike Brand with 25% Repeat Customer Rate Through Direct-to-Consumer Website and Organic Traffic
This energetic eCommerce company is at the forefront of the growing eBike industry, offering flexible, versatile, and eco-friendly electric bikes. With 6 uniquely designed and trademarked bike models and 50+ SKUs, they have established themselves as a leading D2C eCommerce brand. The company’s sales are conducted through their Shopify website, with an average order value of $1,400. They have a strong customer base, with 25% of sales coming from repeat customers.
OPERATIONS
The company operates through a direct-to-consumer (DTC) sales channel via their branded website. They have successfully accumulated organic traffic and achieved a 25% repeat customer rate. Their operations are managed remotely, allowing for scalability and flexibility. The company has strong supplier relationships with two main eBike suppliers and four accessory suppliers located in China. They also maintain inventory at their warehouse, with an average of 2,000 eBikes and 2,000 accessory components in stock.
The company has established strong relationships with their suppliers, who are located in China. They stock inventory at their warehouse and handle an average of 50 shipments per day. The company has a reliable and efficient supply chain and logistics system in place.
MARKETING AND KEY METRICS
The company employs a multifaceted marketing approach, utilizing social media platforms like Instagram and YouTube to generate organic traffic and engage with their target audience. They have also implemented PPC ads on Google and Facebook to expand their customer base. Their successful affiliates campaign and word-of-mouth referrals contribute significantly to their sales. The company has a blog on their website and implements SEO strategies for improved visibility. They have over 100,000 unique monthly visits and an email database of 14,000+ subscribers.
The company has significant sales expansion opportunities across multiple channels. They can form partnerships with bike rental companies, businesses promoting eBike usage among workers, schools, police departments, and municipal governments. By expanding marketing efforts, such as the affiliates campaign and increasing PPC ad spend, the company can further drive sales growth.
Key metrics for this business include a 25% repeat customer rate, a high average order value of $1,400, 100,000+ unique monthly visits, and a 45%+ gross profit margin in the past two years.
The company’s customer base consists primarily of younger and older consumers who are environmentally conscious and seek alternative commuting options. Currently, 40% of buyers are aged 55 and older, 35% are between 40 and 55, and 25% are between 20 and 40. The majority of buyers live in higher income areas, and 70% of customers are male, with 30% being female.
BUSINESS MODEL & RESOURCES NEEDED
All employees of the company work remotely, allowing for flexibility and the ability to operate the business from anywhere. The company currently has 9 employees.
THE INDUSTRY
The eBike industry is currently valued at over $40 million and is projected to double in the next few years. Electric bikes have gained popularity due to their eco-friendly nature and health benefits. Governments worldwide encourage their use as an alternative to cars, which has boosted the demand for eBikes. The market is still in its early stages of significant growth. This company is well-positioned within the industry, with proprietary SKUs and a strong customer base.
OPPORTUNITIES TO SCALE
There are opportunities to scale this business by offering new services like extended warranties, introducing new products, and targeting B2B sales. The company can expand its partnerships with bike rental companies, businesses, schools, and government organizations. Additionally, investing more in marketing, particularly the successful affiliates campaign and PPC ads, will contribute to scale opportunities.
Asking Price: $21,000,000
Gross Income: $12,966,700
Cash Flow: $4,382,874
Year Established: 2018
Employees: 9
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