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eBike Brand Selling its Proprietary Bikes, Parts & Accessories via its Shopify Website

Website Closers® presents an eCommerce company that has done extraordinarily well in the past few years operating in the transportation field – only their niche is not cars or SUV’s … but electric bikes – also known as eBikes. With just 4 parent SKUs (and plenty of parts and accessories), sales have soared for this company, which has done an exceptional job using social media to entice consumers into the joy of using an eBike for daily commutes, recreation, or just the great pleasure of being outdoors. Launched in 2018, this brand turned out to be in just the right position to ride the emerging wave of popularity for eBikes and to find a highly receptive audience for their SKUs. With a high average sale value of $1,500, the company focuses on maintaining products with a lightweight design and unique features, such as security systems and lights built into the frame.

This brand’s story says a lot about this new lifestyle trend and why eBikes are becoming so heavily in demand. But the company’s background illustrates how smart marketing techniques and wise business decisions make a huge difference.

Bicycles are increasingly popular, historically in urban areas but increasingly in suburbs and even rural regions. The global bicycle market was valued at $54.4 billion in 2020 and projected to grow by 7% through 2028. That’s a massive market of bicycle enthusiasts, but the eBike market is quickly catching up to it. The eBike market was valued at $23.89 billion in 2020 and is projected to reach $47.68 billion by 2026, a phenomenal 12.27% growth rate. Consumer preferences to spend more time outdoors, lower energy consumption and leaps in eBike technology have helped to send the sales of eBikes skyrocketing among people looking to use them for both leisure time and commuting, and for the rising number of people eager to go car-free or to avoid public transportation.

While electric bikes look similar to traditional pedal bikes, the bike peddle on an eBike is actually operated with the support of battery power, although riders have the option to not utilize the electric engine. Either way, these bikes are considered a healthy way to get around, and fun as well.

The company started this branded eCommerce website after designing their own brand of electric bikes, which were created after considerable research was conducted to decide the features that were most likely to appeal most to the growing eBike market. Their bikes are sourced in a factory in Asia, designed specifically for this company and sold exclusively under their brand name. All products are shipped from their 3PL in California.

While the brand developed 4 different bike models, each one has several specification variations in terms of battery size and color, which adds up to 15 SKUs. They also sell a wide variety of spare parts and accessories, such as rear and front racks, chargers, chain locks, helmets, replacement lights, saddles, and grips, giving the company more than 100 available SKUs. The brand operates entirely on its DTC Shopify Website. Their 600 square foot showroom has a basement that can hold 55 bikes and spare parts. However, because their sales are actualized across the U.S., in Canada and in Europe, a physical location isn’t a necessity.

For this brand, sales remain particularly strong in the spring and summer months and slow down a bit during the cold weather months, although the brand has responded by increasing inventory sales to distribution partnership channels. While eBikes were originally targeted to older users who relied more on the electric pedals, this brand’s customer demographics are considerably younger. Their typical customer is between the age of 30 and 50, although the customer base ranges from teenagers right up to customers who are 87 years old. Their customers typical spend $1,495 and come back for an average of $80 in add-ons. 

While the brand’s repeat customer rate is now 5%, those numbers are projected to rise quickly. In 2021, the company has seen a sharp increase in the number of customers buying multiple bikes at one time, so the brand has started offering new incentives for that option. Of the vast majority of their present customers, 80% are men. Creating a step-through design, in the works, is expected to increase the appeal for women and elderly customers.

The company is now shipping up to 10 bicycles per day, and they keep 3 months’ worth of inventory in stock at all times. New orders are being placed every 30 to 60 days. The brand’s vibrant presence on social media has been instrumental in their success. They now enjoy strong followings on Instagram and Facebook where posts showing people using their bicycles and enjoying outdoor activity have helped drive sales. The brand also does video marketing on YouTube demonstrating the pleasure of using their eBikes, and those videos have received up to 12,000 views so far. For eBikes, a picture (and video image) truly does speak volumes. The brand is now averaging a whopping 50,000+ monthly visits to their website.

Other effective marketing tools have included PPC ads on Facebook and Instagram, and a smaller number of ads on Google. The company has a massive email database of 12,000+ subscribers which is an effective tool for their email marketing campaigns. Having achieved so much success in just 3 years, the company has tremendous scale options. There are enormous growth opportunities by launching an affiliates marketing campaign, and by boosting their video marketing efforts on YouTube and TikTok. 

Another major opportunity would be launching B2B sales targeting the thousands of bike shops across the country. There are additional brand partnerships the company could cultivate as well. Right now, the company has an exclusive contract with a major ride share company which is valid through 2022. This could be extended, and the company could pursue additional fleet sales. Finally, the company could increase its ad spend on not only social media but Google as well, which has proven to be so effective at reaching customers in the past.

This is a busy company that presently requires around 15 to 20 hours per week from the current owner to operate, focusing on tasks that include advertising, social media management, customer support supervision and product revisions. Fortunately, the company has an experienced team in place to handle daily operations, including a full-time director of operations and 5 contractors who work as mechanics and customer service representatives. 

For this brand, every eBike they have sold has become a visual display of their high-quality products, and every time someone rides one of them and people notice, that’s a major advertisement for them. The fact that the eBike market is getting stronger puts the brand in a desirable position for skyrocketing growth. A fortunate buyer has the ability now to enjoy their recurring revenues and past success and quickly build on it

This eBike Company is Represented by:

WebsiteClosers.com

Tech, Internet & Website Business Brokers

Listing ID: WC2469

Asking Price
$ 3,325,000
Cash Flow
$ 686,453
Gross Income
$ 2,466,129
Year Established
2018
Employees
7

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