Revolutionary Electric Bike Ecommerce Brand: Proprietary Bike Designs, 27% Net Margins, 83% YOY Growth, and a Strong Social Media Following
This Electric Bike eCommerce Brand offers all proprietary bike designs with a net margin of 27% and YoY growth of 83%. The brand has a strong social media following and sells street-legal bikes across the USA. The bikes are made specifically for the brand in Asia, and logistics are managed through a top-tier global firm. The company’s target market is middle-aged males who purchase both individual bikes and add-ons. The company website is highly user-friendly and easy to browse, and the owner spends 20 hours a week overseeing daily activities. There is enormous potential for expansion through digital and affiliate marketing, selling to bike stores nationwide, and international expansion.
OPERATIONS
All bikes are made specifically for the brand in Asia, with the business owner maintaining a great rapport with the supplier. The bikes can be used almost immediately after being unboxed and are street-legal across the USA. Except for rare wholesale and distribution variations, all orders are placed through the company website. They are subsequently delivered to a third-party logistics provider for fulfillment by a top-tier, global firm where around ten bikes are shipped daily. Management constantly tweaks procedures to ensure that operations run as smoothly as possible and that logistics are first-rate.
All bikes are made specifically for the brand in Asia and are street-legal across the USA. Except for rare wholesale and distribution variations, all orders are placed through the company website. They are subsequently delivered to a third-party logistics provider for fulfillment by a top-tier global firm where around ten bikes are shipped daily.
MARKETING AND KEY METRICS
The company’s Shopify-built website is simple and loaded with expertly photographed product images, highly user-friendly and easy to browse. Additionally, the graphics clearly display the SKUs and their salient characteristics, emphasizing the unique selling points. Management should consider extending its reach to secondary channels and eCommerce behemoths like Amazon to introduce its products to the platforms’ existing millions of users and open up new revenue and advertising opportunities.
There is enormous potential for expansion through digital and affiliate marketing, increasing sales to bike stores nationwide, and international expansion. Selling to bike stores is a fantastic prospect for direct and indirect exposure as every bike sold is on display in public and thereby promotes itself. Introducing their products to the massive user base of eCommerce behemoths like Amazon will also open up new revenue and advertising opportunities.
The brand has a net margin of 27% and an 83% YoY growth with a target customer demographic of middle-aged males purchasing an average-priced bike for close to $1,500 before returning for up to $100 in add-ons. The average customer is between the ages of 30-50, with women accounting for a fifth of all sales. The Shopify-built website is highly user-friendly and easy to browse, with the graphics clearly displaying the SKUs and their salient characteristics, emphasizing the unique selling points.
The company’s target market is middle-aged males who purchase both individual bikes and add-ons. The average customer is between the ages of 30-50, with women accounting for a fifth of all sales. There has been a recent uptick in the rate of customers purchasing two bikes at once, and the brand has provided incentives to encourage this.
BUSINESS MODEL & RESOURCES NEEDED
A director of operations and a customer support representative work full-time, while some independent contractors work for the company in operations, mechanics, and customer service. The owner spends fewer than 20 hours weekly on the business. His primary tasks involve overseeing advertising, social media management, web maintenance, managing his team, and supervising the customer support department.
THE INDUSTRY
The eBike market is expected to continue its tremendous growth in the coming years and for many years to come. Consumers are seeking more enjoyable, car-free transportation options and cost-free substitutes that enable them to reach their destinations without incurring further expenses or posing a threat to the general public’s health. Some examples of key players in the eBike market include Rad Power Bikes, Trek, and Bosch.
OPPORTUNITIES TO SCALE
The growth prospects for this business are enormous. As digital marketing has vast applications, the potential of social media and affiliate marketing has mostly yet to be explored. Additionally, selling to bike stores nationwide is a fantastic prospect for direct and indirect exposure. Every bike sold is on display in public and thereby promotes itself. The brand’s success in the USA makes international expansion an extremely lucrative possibility. As they start to expand operations to consumers where demand is high, this will have an impact on sales and boost revenue further.
Asking Price: $5,010,000
Gross Income: $4,665,370
Cash Flow: $1,286,644
Year Established: 2017
Employees: 2
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