Facts and Figures
Our e-Commerce business sells affordable and stylish electric bikes. Launched in 2015, the business has earned an average $8,976 profit/month and has an email list of 30k+ Subscribers. Included in the sale is $50K inventory. The business has done over $1,740,000 in sales between March 2016 and April 2018.
In May of 2018, the owners of the business had an unsolvable dispute in their partnership and ceased advertising, effectively closing the business. No resolution was reached so the owners are looking for an exit.
How does your business make money?
Selling patent-pending electric bikes online to consumers throughout the U.S. and Canada. We manufacture the ebikes in Asia and own a U.S. design patent on our main product.
Why should someone buy this business?
This is a well-established business with a very strong brand and potential.
The business is well structured: A 3rd party logistics company can manages the inventory, shipping, fulfilment, and even customer service, which means you can run the business virtually just by managing Google AdWords and Facebook ads.
There is a simple margin improvement to be made by reducing Fedex charges on an oversized shipping fee.
The RRP could be increased to align with direct competitors. The added revenue generated could be reinjected back into marketing to grow the business.
Improve AOV and CAC metrics:
- AOV $993 per customer (1bike)
- CAC $150 customer acquisition cost.
Included in the sale of the business:
Assets: ~80-100 electric bikes
Trademarks: logo, name, and slogan
Subscriber Database: 30,000+ emails of prospective customers
How can the future owner improve this business?
Expand distribution channels (Amazon, big box retail, rentals, bike shops, college campuses, etc.) and add additional products, up-sells, and cross-sells.
Social media and reviews are also a major opportunity for the future of this business. The 1st generation product was below original expectations, which caused some unfavorable reviews of the original product, but a complete upgrade to a 2.0 model generated a lot of positive feedback, which can be touted throughout various social media channels.
Managing inventory is a large component to the success of the business, considering this is a physical product which takes time to manufacture and ship from Asia. The owners did not do an adequate job in forecasting and managing inventory, which led to several periods in which there were months of little to no inventory.
Spending more time and money on Google AdWords, Facebook Ads, and SEO. Per the P&L, one can see how profit margin increases as ad spend increases.
- Brand and Community Loyalty
- Evergreen Niche
- Large Customer Database
- Passive Revenue
- Turn-key Operations
Opportunities for a new owner
- Launch New Products
- Start Selling into New Markets
- Improve Customer Service
Key day-to-day operations
- Customer Support / Service
- Website Maintenance
- Adwords Maintenance
- Email Marketing
- Facebook Advertising
- Google Adwords
- Brand assets
- Custom technology
- Customer databases
- Existing manufacturing relationships
- Inventory on hand or on order at the time of closing
- Marketing materials and collateral
- Registered trademarks
- Relevant email accounts
- Social media accounts
- Vendor contacts
- Website files, source code and content
- e-Commerce platform accounts
Post sale support
This is support provided by the seller when transitioning the business to a buyer.
About the Seller
I am an entrepreneur and adventure seeker looking to help the world one day at a time.