Bicycle Parts & Accessories Ecommerce Brand with Mobile App & Subscription Service
This eCommerce brand operates in the bicycle parts and accessories sector, providing customers with a range of products and services to enhance their cycling experience. With a mobile app that has been downloaded 35,000 times, the company offers smart cycling lights that improve rider safety, anti-theft features, and a Smart GPS tracker. The brand has a strong online presence with a website, social media accounts, and a blog system. They have a diverse customer base and generate revenue through B2B and direct-to-consumer sales. The company has experienced strong growth and has potential for further expansion through new product offerings and distribution channels.
OPERATIONS
The company’s operations involve the development and sale of bicycle parts and accessories through various channels, including B2B and direct-to-consumer sales. They have created proprietary technology, services, and products to provide a comprehensive ecosystem of cycling gadgets, app services, and fitness features. The company focuses on product innovation, customer satisfaction, and efficient supply chain management to ensure smooth operations.
The company manages its supply chain through efficient logistics and inventory management. They ensure timely delivery of products to customers and maintain an adequate inventory to meet demand. The brand may consider establishing localized fulfillment centers to further improve shipping and conversion rates.
MARKETING AND KEY METRICS
The brand’s marketing strategy includes social media advertising, affiliate marketing, and search engine optimization. They have a strong presence on Instagram and Facebook, with a significant number of followers and email subscribers. The company also monetizes its free mobile app through subscriptions. Their marketing efforts have created a strong brand reputation and generated a high volume of organic traffic to their website.
The company utilizes multiple sales channels, including B2B and direct-to-consumer sales. They have a well-established online presence with their website and mobile app, which has 35,000+ downloads. The brand’s social media accounts and email subscribers also contribute to their sales channel growth. The company has the potential to expand its distribution channels by partnering with popular eCommerce platforms like Amazon and Walmart. They can also explore licensing their technology to e-bike brands and forming insurance partnerships to increase their reach and revenue.
The key metrics for the company include average order value, gross profit margins, and net profit margins. The average order value is $95, contributing to gross profit margins of 70%. The net profit margins range from 25-40%. These metrics indicate the company’s profitability and efficiency in managing costs.
The company has a diverse customer base, including both B2B and direct-to-consumer customers. Their products and services cater to cyclists of all levels, from casual riders to professional athletes. The brand’s smart cycling lights, GPS tracker, and fitness features appeal to safety-conscious cyclists, while their high-quality products are sought after by cycling enthusiasts. The company has a strong reputation among cyclists, contributing to repeat business and customer loyalty.
BUSINESS MODEL & RESOURCES NEEDED
The company has a team of six employees who are responsible for various aspects of the business, including product development, marketing, customer service, and operations. The team works collaboratively to ensure the smooth functioning of the business and achieve its goals.
THE INDUSTRY
The bicycle parts and accessories industry is a rapidly growing sector, driven by the increasing popularity of cycling as a recreational and fitness activity. The industry includes manufacturers, retailers, and service providers who cater to cyclists’ needs. Key players in the industry include Garmin and Lezyne. The industry has seen innovations in smart cycling technology, such as the company’s smart cycling lights and GPS tracker, which enhance rider safety and provide additional features. The industry is also influenced by trends in sustainability, health and wellness, and urban transportation. With the rise of e-bikes and advancements in technology, the industry is poised for further growth.
OPPORTUNITIES TO SCALE
The company has several scale opportunities, including the launch of new products, expansion of distribution channels, and the introduction of additional service offerings. They have plans to release a cycling fitness subscription service and a high-ticket coaching program. The company can also leverage its existing customer base and brand reputation to partner with e-bike brands and insurance companies. These scale opportunities will drive revenue growth and help establish the company as a leader in the bicycle parts and accessories industry.
Asking Price: $675,000
Gross Income: $571,051
Cash Flow: $224,718
Year Established: 2019
Employees: 6
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