SBA Pre-Qualified eCommerce Brand | Online Bicycle Pro Shop | 60% Repeat Order Rate | 13 Years Business | $100,000 in Inventory Included | $200 AOV

Pending

Website Closers® presents a 13-year-old eCommerce Brand that has made a strong name for themselves as a premier Online Bicycle Pro Shop. They have established themselves as a staple in the BMX community, with several accounts for BMX parts and mountain bikes that other businesses struggle to acquire. They generate 90% of their sales online through eBay, Facebook Marketplace, and their own website, with the remaining 10% made through their retail location.

The brand has an AOV of $200, 20,000+ subscribers in their email database, and a respectable Repeat Customer Rate of 60%. Their operations are structured in such a way that 100% of the products sold on their website could be DropShipped from about 20 different supply houses in the US. This would streamline the brand’s operations and save them money currently being spent on warehousing.

The company is also prequalified for SBA financing, which will help qualified buyers achieve a swift ROI post-purchase due to the 10-year amortization and lower interest rates on a down payment of just 10% of the purchase price. This, coupled with approximately $100,000 in inventory, will allow an ambitious buyer to quickly grow the brand.

Business Broker Takeaways

1. Valuable Sponsorships. The brand has lucrative sponsorships with a team of about 40 to 50 BMX riders, who wear the company’s jerseys at all race events put on by USABMX. They also have over 250 co-sponsored riders, who feature the brand’s logo somewhere on their jersey and use coupon codes to purchase all their items through the brand.

Every year during Thanksgiving week, USABMX hosts the annual Grand National, which sees over 3,000 racers attend and participate. As the company has a large “pit space” for their team, riders, and promotional items, these events act as powerful opportunities to attract new customers.

2. Strong Organic Marketing. As the company’s products fall under popular brand names, they often sell themselves among BMX enthusiasts. This, coupled with their excellent sponsorships, leads to a substantial flow of organic traffic. The brand supplements this natural growth through polished organic marketing strategies.

Their website incorporates SEO strategies, with the current owner updating the SEO for each product when a new product is added. They also have an active presence on social media, posting daily to each of their accounts. The brand now has over 50,000 followers on their Instagram account, 5,000 targeted friends on Facebook, and over 1,000 subscribers on YouTube.

They also have a rapidly growing TikTok account that a savvy buyer could develop for an even stronger online presence.

3. Low Workload. Current ownership spends an average of 15 to 20 hours per week managing their responsibilities. These include updating products on the website, handling order fulfillment, and running marketing and social media efforts.

The brand also employs an associate/mechanic, who works part-time in their store to work on bikes. This worker isn’t needed if a buyer plans to take operations entirely online, however. Their web hosting and backend updates/changes are handled by Freshysites.

Scale Opportunities

The company is well-positioned for growth, having worked to obtain strategic relationships with mountain bike manufacturers. This new product line gives them another edge over competitors, as by targeting this niche, they can appeal to a broader range of potential customers.

The brand could draw attention to this new market and their other products through a paid digital marketing strategy. The seller feels that there is unlimited growth potential available if enough time and money is put into paid marketing, and that a polished online campaign could easily send the company into the $4+ million range.

They could also add to their pool of potential customers by establishing a new Amazon storefront. With Amazon being as popular and as widespread as it is, this expansion would make their products more accessible and drastically broaden their reach.

Conclusion

This brand is a well-known and well-recognized name in the BMX community and has created a strong network of relationships since their launch in 2012. The foundation that the company has built over the years will allow a buyer to put the pedal to the metal and take them to the next level.

The seller will require no special skills to run the brand, outside of optional knowledge on how to build a bicycle wheel and a willingness to learn DropShipping.