Website Closers® presents a flourishing company in the eBike Vertical, primarily selling directly to consumers from its website. The pandemic increased the speed of adoption of an already rapidly growing new market, and this brand has taken full advantage, with revenue continuing to grow beyond expectations.
The economic climate may be dire for many businesses, but this is certainly not one of them. As fuel prices soar, public transport becomes more expensive, and living costs escalate, people are looking for affordable and practical solutions. The e-bike ticks all boxes, and the customer base has changed considerably. By simply looking at the broad demographics now purchasing the product, it’s evident that these bikes have transitioned from a novel hobby or fashion statement to a necessity for many.
The brand’s products have historically been favored by men between 30 and 50 not so long ago. Now, senior citizens, teens, and women are all customers, and judging by the glowing reviews of this cohort, delighted customers at that. The average initial order approaches $1,700, with most buyers adding at least $80 worth of accessories shortly afterward. Astutely, management has made a wide selection of add-ons available, including, but not limited to, luggage racks, safety locks, LCD displays, and kickstands. Additional repeat business comprises replacement parts such as lights, tires, and replacement keys, increasing customer lifetime value, and bringing in a steady income stream aside from the hero SKUs. Recent data shows a noticeable increase in customers purchasing more than one e-bike at a time. There is little coincidence in that metric, as the owner has been savvy by offering discounts for that very purpose.
Considering the proliferating business, the owner endures a light workload. As a result, only two employees are necessary to manage this business comfortably. Their efforts involve operations and customer support, allowing the current owner, and a prospective buyer for that matter, to focus on scaling the brand. Additional contractors assist primarily with mechanics, customer service, and order fulfillment.
As well-oiled and automated as the company is, the team continually hones processes for maximum efficiency and client satisfaction. Logistics is an excellent example. Orders are received via the Shopify-built website and fulfilled by a 3PL. Typically, eight to ten orders are sent out daily, with spikes during certain seasons and holidays. The traditionally slower sales months have been negated somewhat by shrewdly increasing inventory sales to distribution and brand partnership channels.
The company operates from office space in the back of its small New York City showroom, where customers can view and test the range or have their bikes serviced. Plans are underway to run the business virtually, which will further lower costs and improve the bottom line.
The business works closely with its Asian manufacturer, who designs the bikes exclusively for the brand. An excellent relationship exists between both parties, and deliveries have been reliable even through tumultuous global supply chain woes. Desirable payment terms have been effectively negotiated by the owner, who has visited his faithful supplier on numerous occasions.
Growth prospects are broad and promising. Digital marketing presents an immense opportunity to reach an audience of millions who may not yet have discovered the brand. Platforms like YouTube and TikTok could significantly boost revenue to complement existing advertising on Facebook, Instagram, and Google. Affiliate marketing, too, presents a potentially lucrative endeavor, particularly considering the quality of the brand and the incredible growth in the vertical.
Currently, 98% of sales are made in the US. It stands to reason then that this company could conceivably launch internationally or license its products, with incredible success. Furthermore, a focused move into wholesale could well level this business up.
Additional sales channels like Amazon seem like low-hanging fruit to escalate sales. A buyer with expertise on the platform could realize a speedy and substantial return on investment.
This brand is enticing and unique for many reasons, including the diversity of buyers who could prosper as new owners. The acquisition would just as easily suit a strategic buyer as a financial buyer. In any event, few special systems or expertise are needed for a new owner to seamlessly transition into the business, making it that much more desirable, given its proprietary nature.
Contact Website Closers today to kick the tires and light some fires in your portfolio before this opportunity vanishes.
