Website Closers® presents an eCommerce business operating in the rapidly growing Smart Cycling tech market, one that strives to provide their customers with the ultimate cycling experience. They have spent years working in-house to develop their proprietary technology, services, and products, which all work together as a fully developed and highly useful ecosystem of desirable gadgets, app services, and innovative fitness and lifestyle-based features.
Among their 12 SKUs, their key products are their smart cycling lights. These lights utilize a combination of advanced sensors and a smart app to provide riders with tools and features that significantly boost rider safety, make them more visible to drivers on the road in dark and unfavorable conditions and provide anti-theft features.
The company has also expanded on the popular anti-theft features by creating a Smart GPS tracker for customers that want more robust and customizable tracking features that suit their busy lifestyle. Whilst being a pre-order product, the Smart GPS tracker has already taken off with hundreds of customers purchasing and committing to the subscription data plan tied to the product. The company has completed its creation of an additional service that provides users with world-class fitness and training features. Upon release, it will be able to unlock untapped segments of the cycling market, essentially leap-frogging its traditional competitors, such as Garmin and Lezyne.
Among the first of their kind to bring smart technology to bike accessories, it’s no surprise that customers responded so positively to their SKUs. The brand’s Average Order Value sits at a comfortable $95, which has led to gross profits of 70%, and net profit margins that fall between 25-40%. One of their biggest selling points outside of their network of products is their free app. They have 35,000+ users for this useful service, and there are new features ready for launch that will monetize it, with subscribers already flowing through. This will rapidly lend itself to a new and healthy source of revenue for the company even before the new owner steps into a leadership role.
The company’s advertising strategy focuses heavily using on social media to boost organic traffic, with an affiliate system in place that has been instrumental to their marketing. They have 100+ affiliates signed up, and this system’s benefits can typically be found through their website program. They also have an excellent SEO campaign in place, managed by a full-time SEO writer. This writer is also responsible for running the brand’s blog system, with blogs being created daily, and currently sitting at over 120 blogs and premium articles.
They can also be found on social media, where they have active accounts on Instagram and Facebook. The former has 5,000+ followers to its name, and the latter has 6,000+. These have contributed to the company’s 45,000+ email subscribers, a useful asset that has only recently been utilized as a marketing tool. The company supplements these tactics with PPC ads on Instagram and Facebook, ensuring that even if a consumer doesn’t necessarily follow their social media accounts or is otherwise unfamiliar with their brand, it’s easy for them to find their website.
These strategies, along with the exclusive, high-quality nature of their offerings, have made the company a force to be reckoned with in this industry and has spread their reputation among cyclists everywhere. They can easily drive 150,000+ unique monthly visitors to their website when scaling and have a healthy mixture of DTC and retail sales — excellent launching points for a buyer. The company has already taken strides to develop their customer base and grow as a brand, it should hardly be any challenge for the new owner to step in and send profits skyrocketing.
The biggest hurdle that the company faces now in their growth journey is their lack of capital. By investing additional capital into their inventory, they could almost immediately scale and see consistent growth moving forward. The brand has more than a few additional products in development that, once launched, are expected to be an easy source of revenue for the buyer to enjoy. They could then use that momentum to develop new products and release additional back-end service offerings.
One offering idea that might be particularly promising is high-ticket coaching programs, which would take advantage of the brand’s cycling fitness service. They could also build upon an existing subscription-based anti-theft service which has 200+ subscribers and 300+ confirmed interested individuals. The company already has plans to release a cycling fitness subscription service for their fitness-centric consumer base.
Scaling operations are paved out for the business, with a focus on the launch of its new hardware and services, and expansion.
The company’s market research clearly shows untapped segments within the cycling and fitness market, which the new hardware and services will effectively penetrate. The new customers will also continue to flow by engaging a wider group that overlaps with the cycling fitness market and other untapped segments by promoting features that will showcase benefits in a more convenient manner and at a fraction of the price of its competitors.
The most straightforward way to expand further is to launch additional distribution channels outside of their website, such as Amazon, Walmart or other popular eCommerce platforms. These websites are popular with millions of consumers around the world, and in the case of Amazon, allow for easy worldwide sales thanks to their international platforms. The brand could also expand by licensing their tech ecosystem to e-bike brands and even insurance partnerships leveraging the anti-theft smart GPS product’s capabilities, expanding their network of partners, increasing their revenue, and cementing their reputation as a trustworthy name among an even broader number of consumers. Another quick and easy win is the setup of localized fulfillment centers, which will provide 2–3-day local shipping and subsequently increase conversion rates by 25-30%.
A buyer looking to scale this business could strengthen the flow of organic traffic by effectively building up their social media marketing campaign, creating a stronger social media presence and making regular posts on their platforms. They could also expand onto TikTok, another popular social media site that can make brands viral practically overnight if used correctly and could also work well with their affiliate marketing program.
This smart cycling accessories company has a bright future ahead of it. They have a highly profitable sales funnel that makes the customer eager to purchase more accessories, including the addition of smart sensors and an optional high-ticket cycling coaching/training service that can be offered at the back end at the buyer’s discretion.
Their business model already encourages customers to stay with the company once they’re hooked, and with the right moves and strategy, a buyer can create far more loyal customers than ever and grow into a household name for cyclists everywhere.
