The U.S. Bicycle industry has been growing steadily over the past ten years and is currently over a $6 billion industry. While the bicycle industry is seasonal that can be impacted by unusual weather, national trends related to the green movement, environmental sustainability, the need to address health problems related to inactivity and higher gas prices bode well for the future of human-powered transportation! This easy to operate internet business has over 30,000 bicycle parts & accessories for sale and is one of the premiere sites on the web in the bicycle parts industry! Although this internet business is easily relocateable and can be operated from any location, a brick and mortar bicycle shop is required to order product from the suppliers. The owner operates the website from a 700 sq. ft bike shop with an existing store employee handling customer service, packing and shipping and ordering products in proportion to sales. The owner developed a unique feed system that automatically updates the website with product photos and descriptions. With product listings refreshed automatically everyday, there is a savings of thousands of hours of labor in writing product listings by hand. Consistent with a “Just-in-Time” inventory model, product is ordered from the supplier at the time the customer places the order. When the product arrives at the store, it is shipped out to the customer so there is no additional inventory storage. By simply maintaining this internet business, a new owner will receive the current profit level which requires very little effort. By applying proven strategies and the other new ideas, this business has huge potential for dramatic growth and is an excellent opportunity for a bicycle shop to enhance an existing business further!
For bicycle shop owners who are feeling the pressure of the internet encroaching on their business, this website can be easily added to your existing shop to instantly propel your business into the millennium and provide the channel needed to grow with the times! Building upon its established foundation, there is plenty of room to expand this internet business further. Some ideas for future growth include: enhance the current affiliate program, focus more on the Froogle data feed process, provide a newsletter to consistently promote products and additional SEO.
In the U.S., bicycles can only be sold by retailers that have a storefront and service department making the cost of entry into this market high and prohibits new competition. This business has expanded its product lines, increased traffic and streamlined operations thereby surpassing its competitors in traffic and gross sales.