High-Margin eBike Ecommerce Brand with Proprietary and In-House Designs and Strong Social Media Following
The company is a leading brand in the niche electric bike space and offers a wide range of proprietary eBikes with exclusive in-house designs. Their products are marketed and sold through their D2C eCommerce site and have shown steady growth with strong margins. The brand has a significant social media following and targets customers of all ages who enjoy the power and convenience of eBikes for leisure or commuting.
OPERATIONS
The company sources 90% of its products from a single supplier and stocks inventory. They maintain a strong relationship with their supplier who designs their unique SKUs. Products are shipped to their 3PL in California, and they maintain at least 3 months’ worth of inventory to ensure continued growth.
About 90% of the company’s products are sourced from a single supplier and the business stocks its inventory. The company has maintained a strong relationship with the supplier that designs its SKUs. Products are shipped to their 3PL in California, and they maintain at least 3 months’ worth of inventory to ensure continued growth.
MARKETING AND KEY METRICS
The company’s highly successful marketing strategies include social media advertising on Facebook and Instagram, as well as PPC ads on Google. Their email database of 15,000+ subscribers is used for newsletters, promotions, and upsells. The company also provides incentives for customers who purchase two eBikes at one time.
The company has excellent scale options and can define itself as a leader in the field. The brand has an email database of 15,000+ subscribers would be used for newsletters, promotions and upsells. Another option would be to invest in the company’s first SEO program. Applying popular keywords that buyers of eBikes are using in their Google searches would generate an enormous increase in their organic traffic, and the company could also invest in an educational and informative blog on their site to further expand traffic.
The company has a significant social media following and targets customers of all ages who enjoy the power and convenience of eBikes for leisure or commuting. With 130% YoY growth and 26% net margins, the brand has shown steady growth and profitability.
The brand targets customers of all ages who are attracted to the power and convenience of eBikes for leisure activities or commuting. About 80% of their customers are men, although their typical customer spans a wide age range, from 30 years old to over 80.
BUSINESS MODEL & RESOURCES NEEDED
The company employs two workers who handle customer inquiries. The current ownership spends no more than 12-20 hours per week overseeing advertising, social media management, staff management, and supervising customer support.
THE INDUSTRY
The electric bike space has grown in popularity among consumers due to its health and environmental benefits, as well as its monetary value. Rising gas prices have led to more people using bikes for commuting, and with the incorporation of batteries, eBikes are becoming an attractive alternative. The company has positioned itself well in this growing market and has shown steady growth with strong margins.
OPPORTUNITIES TO SCALE
With a highly successful brand and steady growth, the company has several scale opportunities. The company is set to launch a new step-through product, targeted towards women and older bicyclists. They continue to look for new ways to innovate and launch different SKUs.
Asking Price: $4,850,000
Gross Income: $3,671,163
Cash Flow: $989,755
Year Established: 2019
Employees: 5
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