Re: Inventory risk of E-Bikes

E-bike sales in Europe are booming to the delight of bicycle dealers and the the whole industry. Demand for electric bicycles is going through the roof and growth is not expected to slow in the coming years. Take Germany where electric bike sales in the first half of 2019 rose to nearly one million units, about the same volume as in the whole year of 2018!

As a consequence, dealers are tempted to increase their inventory of e-bikes in order to meet the demand. However by doing so, due to the rapid improvement of electric bicycle technologies and pricing, overall inventory risk will also increase.

Recent market figures show that the annual depreciation rate of e-bikes is on average 20% higher than that of regular bikes.

For independent bicycle dealers, inventory is usually the largest position in their balance sheet and they need to manage it carefully. Too much inventory will negatively impact debt levels and profitability while dealers with not enough inventory will loose customers to competitors.

Are you looking for solutions to benefit from the e-bike boom while still running a lean inventory? Don't look any further: Bike2Shop's digital platform allows independent bicycle dealers to increase their offer to customers and in the same time reduce inventory risk.

The future of cycling is digital. Contact us today for more information.

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