Branded Cycling Accessories Ecommerce Company with 5-Star Amazon Account
This fully branded Amazon and eCommerce company offers high-performance cycling accessories. They have three floor and hand bicycle air pumps which are fast-moving and highly coveted. The shop has a 5-star, 100% positive-rated Amazon storefront and a polished dot com storefront. With quality assurance a guarantee due to the warehouse located in Ontario, generous net terms help facilitate cash flow. The company’s solid marketing strategy of Facebook, Google PPC, Amazon Sponsored marketing, coupons, blogs, and email marketing could be expanded even further, including social media diversification, wholesaling, and even brick & mortar retail sales. Opportunities for profitable growth are immense.
OPERATIONS
With a warehouse in Ontario and suppliers of top-shelf equipment, quality assurance is top-notch. The company’s only sales channel is their Amazon storefront, and marketing expenses are kept to a minimum while seasonality is low. The company’s whole operation is finely tuned, which makes it a profitable business model.
Suppliers provide top-tier equipment, so the company purchases from them with generous net terms to facilitate year-round cash flow. The company has a warehouse in Ontario to ensure inventory quality and to ship items to Amazon, currently their only sales channel, which minimizes seasonality.
MARKETING AND KEY METRICS
Comprising long-established Amazon and eCommerce companies with active and engaged social media accounts, this company already has an effective marketing strategy. The company also uses Facebook, Google PPC, Amazon Sponsored marketing, coupons, blogs, and email marketing. These online marketing channels, along with existing branding and a website, have helped to generate a loyal customer base.
Currently, this company only sells through their Amazon storefront. However, avenues for growth include social media diversification, wholesaling and even brick & mortar retail sales.
The company has a net income of $50,000 and gross income of $305,000 annually. It was established in 2014 and currently has only one employee.
The company has a loyal customer base that patronizes them for the purchase of high-performance cycling accessories, with a customer return rate of 22%. Most customers come from their Amazon storefront, but social media diversification and brick & mortar retail sales could help the company expand its customer base.
BUSINESS MODEL & RESOURCES NEEDED
Currently, this company only consists of a single employee, which affords an opportunity to augment team growth during an expansion phase.
THE INDUSTRY
The cycling accessories industry in North America is vast, with key businesses that offer a wide range of products and services to meet the needs of customers. Examples of these include Dero Bike Racks, Park Tool, TwinSix, and HED Cycling. Cycling whizzed past the pandemic-induced slump due to individuals seeking safe and socially distanced methods of exercise, offering an opportunity for growth in this industry.
OPPORTUNITIES TO SCALE
To increase its profitability, this business could use social media marketing, incorporate wholesale sales, and sell their products in brick & mortar stores while continuing to expand their Amazon storefront. Even though the company only has three floor & hand bicycle air pumps, purchasing and selling more cycling accessories items would help increase the company’s annual revenue. The operation has already established partnerships with manufacturers in the cycling niche to ensure consistency and quality control.
Asking Price: $150,000
Gross Income: $305,000
Cash Flow: $50,000
Year Established: 2014
Employees: 1
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