Flippa
FOR SALE
Business Name

Confidential

Business Model
e-Commerce
Industry
Sports and Outdoor

$19,000

Asking Price
Multiple 0.2x

+ $50,000 Inventory

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Californian eCommerce business selling affordable electric bikes. Our bikes are affordable, reliable and performance driven. As featured in Forbes, Mashable and CBS.
This business owner has manually entered their financials

Facts and Figures

Location
United States
Date of Founding
2015
Full-Time Staff
Owner Operated
Annual Revenue
$580,068
Annual Expenses
$472,356
Annual Net Profit
$107,712
Profit and Loss
Evidence of Revenue
Note: Where the business is less than 12 months old the annualized data represents total sales for the period of operation.

Business Description

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. Optional 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 electric bikes online to consumers throughout the U.S. and Canada. We manufacture the ebikes in Asia and keep inventory in California.

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:
Domains
Website Files
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.

Why are you selling this business?

Split in the partnership.

Business Strengths

  • 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

Marketing

  • Email Marketing
  • Facebook Advertising
  • Google Adwords

Inventory

Value
$50,000

Assets

  • Brand assets
  • Custom technology
  • Customer databases
  • Domains
  • Existing manufacturing relationships
  • Marketing materials and collateral
  • Registered trademarks
  • Relevant email accounts
  • Social media accounts
  • Vendor contacts
  • Website files, source code and content
  • e-Commerce platform accounts

Social Media

Facebook
9K followers
Instagram
280 followers

Post sale support

This is support provided by the seller when transitioning the business to a buyer.

Included

Confidential

Verified Account

United States