Have you had a look at the annual report ? Revenue isn't that great. The company mainly makes it's money on Commission i.e retailers / normal people selling stuff on their website. You have big competitors such as Wiggle and Chain Reaction Cycles, these website tend to offer cheaper price than retailers here in Australia. Purchasing a actual bike on the internet can be great if you know what you are looking for, but majority of cyclist like to try out specific bikes prior opposed to blind purchasing. If they tend to need something desperately they would go to their retail stores if not they would wait and order via web i.e above mention due to cheaper rates... At this current rate they would probably need to take in $10M sales to break even or $100M worth of purchases per year as they base their Commission on approx 10%...
How ever if Bike Exchange was to have their own products and distribution like Wiggle or CRC with better competitive pricing than brick and mortars it would be something worth considering. But I'm sure they are spending huge on teams to get their names out...
A loss of $10M per year and only $5M Rev... They are spending more on employees and operating than whats coming in...
But the question is, why should I sell on BEX when I can sell it on eBay or Gumtree and get more value for my money and less fees ?
I'm not a hater, I'm a cyclist myself. I own a Cannondale CAAD 10.
There is just to much risk and not enough value. I would love to comeback a few years later and see what innovations they can come up with opposed to Commission based sales.
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