B2B Retailer in Cycling Lights and Accessories – International Distribution in 29 Countries – Exceptionally High AOV – Easily Scalable

Asking Price:
$275,000
Sales:
$443,712
Profit:
$79,316
Year Established:
2020
Multiplier:
3.4x

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Seller Force® presents an exciting opportunity that’s definitely worth shining a light on. Selling an impressive series of Cycling Lights and Pumps, this fast-growing, international B2B Wholesale company demonstrates dynamic industry saturation, an exceptionally high AOV, and high-quality, private label products fully attainable to the long-standing cycling community on a global scale.

Forged with the knowledge of distinctive lighting properties like lumen intensity and optimized lenses, they pull the finest resources and materials to ensure outstanding quality and execute clever design techniques that maintain their products’ affordability. These standards have been achieved through the strong relationship built between current ownership and the brand’s manufacturer. This partnership also assists in securing them cost-effective pricing and production flexibility, driving potential for future product diversification.

Peddling a B2B model currently managed out of South Africa, they’ve adapted their sensational products into year-round profits by selling to vendors in both the Northern and Southern hemispheres. As they currently occupy massive sales in 29 countries, this model has lent itself to quick growth and distribution worldwide. The bulk of their products sell directly to distributors, many of their recurring orders surpassing $10,000 with each shipment, and all inventory is managed through their supplier.

Their current model also boasts a quick turnaround time for orders and low overhead, a sum of only 5 hours per week designated to managing this business with ease. Overseeing order fulfillment and customer support are the primary tasks for current ownership. The addition of a VA would potentially cut this workload in half, leaving time to further invest in product development.

In recent years, as many began to take more interest in outdoor activities, the market for cycling accessories has become even more desirable. Cycling equipment revenue increased 15% to $8.5 billion (July 2021) and is expected to expand at a Compound Annual Growth Rate (CAGR) of 7.0% in the next decade. Many interpret bike lights as a necessity for safety and are even legally required in a number of regions around the world.

As a fully fortified brand, their products successfully indulge this market by offering a long line of unique front and rear lights as well as bicycle pumps, another year-round profit-driving item for them. Whether commuting, training, exercising, or treading leisurely, each of their carefully crafted lights ensures optimal safety and all-around visibility at a value cost.

Having proven such industry prowess at an accelerated rate, there are many illuminating scale opportunities available to effectively scale this venture.  As they proceed to dominate a vast amount of the market already, there is still room for further saturation.

Expansion to countries like Germany where there is a massive surge in the cycling market taking place would brand them an industry leader in the European Union as they have already secured distribution in the UK, Spain, and Portugal. Other areas for diffusion could include South America and the United States — the latter being the most intriguing — for there is a myriad of direct selling platforms to utilize, Amazon active promotions, and store distribution opportunities to maximize sales.

A natural progression for a business like this would be to tap into areas like product development and industry expansion to boost profitability and achieve higher sales volumes. While they don’t have any of their own proprietary products, they could begin developing their own line of coveted cycling accessories and offer them up as OEM (Original Equipment Manufacturer) products to other brands.

Shifting gears, this company could extend its current line of products and begin offering accessories for motorcycles, ATVs, and UTVs. Branching out into camping and outdoor lights, diving lights, and webcam/photography lights would fare well for them as well.

Conducting a solid digital marketing strategy would present another chain of excellent growth opportunities. This company has attained over 8,000 contacts in their email database, first-rate source material for them to begin implementing substantial email campaigns that introduced new products and promotions, increasing customer retention rates. Statistically speaking, 94% of B2B buyers partake in extensive online research prior to making a purchase.  Optimizing their content for organic search engine results, investing in PPC advertising, and successful social media engagement are perfect ways to nurture genuine B2B leads.

This is a gleaming opportunity to own a well-established business with strong international ties in a market that’s only going to experience continuous uphill growth. On the path to success, a growth-minded buyer will be backed with the right set of tools to light the way.

 

 

 

Listing Number: SF37

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