Website Closers® presents an eCommerce Company that turned a hobby into a tremendously successful business, marketing what has become one of the hottest trends in urban areas … the use of Hoverboards and electric scooters to get around. This is a market that’s maturing quickly, and this brand has taken advantage of that, earning $7 million in revenue after developing and successfully marketing their own products.
The company operates its DTC business via an Exact Match, Premium Domain, which by itself is very valuable real estate in this sector. The company’s products are manufactured directly for them, built to this company’s own specifications and color options. Based in the U.S., the company developed its hoverboards with safety and durability in mind, which has only made them more popular with their growing base of customers, including the parent and grandparents that purchase these products as gifts.
The website is built on the back of WooCommerce and WordPress, making it very user-friendly, easy to manage and update, and importantly for a buyer, easy to learn. The site is user-friendly, modern and fun with great product and brand images that reflect a young user mentality.
Customers receive fast delivery from anywhere in the country from the brand’s centrally located 3PL fulfillment center. Their emphasis on producing unique and high-quality products, excellent customer service and a growing number of SKUs have only widened their appeal via word-of-mouth acknowledgment.
As this brand has discovered, customers are also attracted to hoverboards that have unique designs and features, come in different colors, and stand out visually when they’re using them. So the company set out to create unique designs and colorways so that the customers could both make a fashion statement and use a product that allows them to get from point A to B faster than walking (and more fun than riding a bike).
This vertical is growing in popularity throughout urban areas across the globe. The global hoverboard market was valued at $778 million in 2021 and is projected to grow by 5.4% through 2030.
From Hobby to Business.
The business was initially started as a hobby due to the owner’s love of using hoverboards himself. He was working a full-time position as an employee when he originally started the company. Sales grew fast and it quickly became clear there was a strong audience for these products. In fact, revenue grew by more than 200% in the company’s second year when it became the full-time occupation for the owner, who began focusing on scaling operations.
The owner was able to run the business by himself for a while, but brought on a Virtual Assistant more recently to help with customer support tasks. More VAs could be hired by a new owner for administration, but there really is no need as the daily tasks for an owner-operator are not onerous under current sales volume given how simply the entire business is to operate.
Through the company’s Website, the company markets 4 models of hoverboards that vary in wheel size, color and style for use on different terrains. They also sell an electric scooter which has shown encouraging results so far.
Their 50 SKUs, which include a variety of colors to choose from, have appealed to parents purchasing hoverboards for their kids or grandparents buying them for their grandkids. The company’s focus on safety has been a strong selling point to this demographic, since the brand emphasizes that their products are made from the highest quality standards and materials.
They are also sold at a higher price point, but the company has found their customers are willing to pay extra when it comes to quality and the safety of their children. However, at this higher price point, some families just cannot afford the current models sold by the company, which is why an entry-level model is being released in May to capture this huge market that has been missed since its inception. Profit margins are still very strong for this lower-end model, and volumes are likely to be high.
Word-of-mouth referrals have been a strong marketing tool for the company, since buyers are eager to recommend their hoverboards to family, friends and coworkers.
Operations.
The company has continued to expand, offering longer-lasting battery packs and a wide selection of custom and unique color options that competitors don’t have. All products are sourced from a single supplier they have been working with since the company was first launched, and currently, no other U.S. company offers this array of models and colors, including some colors that are exclusive to this brand.
Their Average Order Value is now $241, which might change slightly with the advent of the aforementioned lower-end model that is coming soon.
Products are stocked in a 6,300-square-foot warehouse and they typically stock up to 3 months’ worth of inventory to keep up with orders. The company is shipping between 10 and 40 packages a day, and up to 150 a day during peak season.
Besides word of word referrals and strong customer testimonials, the company has used Google Ads to drive sales higher and recently began testing social media marketing campaigns as well.
The company has additional major scale options, including expanding their current listing on Amazon to include all models (as currently only one model is on Amazon & only select colors) while also launching Walmart.com will reach a new demographic.
This brand has become a favorite of urban dwellers, providing them with a fun, safe and reliable means of transportation. Adding a fashionable touch to the products has only made them even more popular, and their growth potential is enormous.
