Digital Horizons
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Digital Horizons
Riding the Wave of E-Commerce: Opportunities and Challenges of Being First to Market
Ever wondered how an e-commerce upstart thrives against the big-box giants? Strap in as we take a ride with Mark Cash from iScoot, who illuminates the path from sourcing scooters internationally to establishing a booming business in Australia. Our conversation peels back the layers on what it takes to stand out with exceptional service and expertise, striking the perfect balance between online sales and the gold standard of a physical store presence.
Join us as we tackle the bumps in the road, from the logistics of stocking parts and ensuring safety compliance to the craft of curating a strong online presence. In the electric scooter market, where competition is fierce, Mark shares the art of educating customers and the necessity of adapting to unforeseen challenges like soaring freight costs. It's not just about the ride; it's about creating an experience that keeps customers coming back for more, all while navigating the digital revolution of retail.
For those with an entrepreneurial spark, this episode is a treasure trove of insights. Our discussion with Mark also delves into the marketing strategies that skyrocketed iScoot's growth, the importance of customer feedback in expanding product ranges, and the anticipation of evolving family-friendly models. Learn how a well-oiled combination of targeted Google Ads, a vibrant social media presence, and genuine customer care can propel a start-up into the limelight and what the future holds for this dynamic sector.
The Digital Horizons Podcast is hosted by:
James Walker - Managing Director Walker Hill Digital
Brian Hastings - Managing Director Nous
By aligning ourselves with an agent overseas in China that really understood what we're looking for. He then did a lot of the groundwork to find the right factories In China. You've got the manufacturers, then you've got agents selling for the factories and then you've got agents selling to the agents. So there can be several layers of margin if you're not going direct to the factory. So basically, after sourcing the product and in between sourcing the product and actually arriving, that's when we did a lot of our research. We did explore wholesale but ultimately found that in order to sell wholesale, especially to some of the larger brands, there's a lot of stock, required a lot of training and ultimately, if they're not specialised in selling the product, they weren't necessarily going to be selling the product to the right customer. The challenge for us was to make sure we were competitive from a price point but also had a point of difference to JB Hi-Fi, which is range, which is service and, obviously, the knowledge of a product.
Speaker 2:Welcome to the Digital Horizons podcast. I'm your host, James Walker, and today I'm joined with Mark Cash. Mark has been working in sales for over, well, nearly 35 years. That's really speaking your age, Mark, Thank you. Starting out in Birmingham in the UK, and since then he's worked in many different areas, but has most recently launched iScoot in Australia, which was six years ago well, coming up onto six years. Today we're going to be talking about the different challenges and, I guess, benefits of launching a new product into a new market or brand new market, and looking a bit about your journey within the e-commerce space. Mark, welcome to the show, Thanks.
Speaker 1:James, great to be here and just to clarify, I did start sales at the age of 11.
Speaker 2:You missed that bit out. Yes, that's true. I mean yes, definitely. I mean if we've said that you started that after you'd finished college or something, it would put you in a much older range. So, mark, I guess if you could just give us a little bit of a background into yourself and how you got to the point where you are now, where you're operating to, in anybody's terms, successful e-commerce dollars, yeah, sure.
Speaker 1:So look, I won't go back too far, but ultimately came to Australia at the age of 21 and saw there was a massive opportunity in Australia for people like myself that weren't particularly academic but loved sales and spent most of my 20s and 30s in quite corporate retail businesses that had B2B as well as B2C sales channels and through that learned lots about different sales techniques and towards the end of that, actually we started launching some e-commerce businesses as well.
Speaker 1:Some of them were quite unsuccessful to begin with, because it's still in the very early days of looking for that new space for sales to come from, but ultimately, through trial and error, built a couple of successful online businesses with building products, which is notoriously quite difficult to sell building products online especially. So selling building products for 20 years, as good as it has been. Probably the thing that sticks in my mind is my daughter saying to me one day when I took her into the office Dad, this is quite boring, and I was like you know what? It is a little bit. So I was looking for products online and I was actually looking for a product for my wife for her birthday and came across electric scooters. I was looking for products online and I was actually looking for a product for my wife for her birthday and came across electric scooters and just was quite impressed by the technology and this was about seven years ago, so that would be what the 2018, 2017, we'll be talking about.
Speaker 1:That's right, yeah, yeah okay and really I mean scooters have been around for a very, very long time, but electric scooters for adults it was still very new, and especially with the lithium battery technology as well. So the product we looked at I imported a few just to have a look at from America and really liked what I saw and I thought the technology was quite interesting. No one in Australia was doing it at the time, so we decided to try and source supply and we worked with an Australian agent that was based in China that was able to find the factory force and organize supply. That whole process sort of took six to eight months from start to finish. So the first shipment arrived. It would have been in October, just in time for Christmas, and that's actually when I first engaged with you guys to do my e-commerce platform, yeah, so basically after sourcing the product and in between sourcing the product and actually arriving, that's when we did a lot of our research. Now, in an ideal world you would have done majority of research before you committed to buying the product, but we just saw that it was a gap in the market. It was a new product and there was very few people that actually sold the product by the time it landed.
Speaker 1:Coincidentally, that exact week that the product landed was when ride-sharing of electric scooters got launched into Brisbane. So all of a sudden the streets were full of electric scooters and people going what are these doing? And we were quite nervous that people would go. Actually, well, why would we buy when we can rent? But actually it really helped to build a business and to build knowledge about electric scooters and the capability, and especially when it came to people that were renting scooters on a regular basis daily, they realized actually it was much more economical to just purchase a product and actually rent it. So it was actually really good for us and it was perfect timing to have the ride sharing arrive pretty much in Australia at the same time as our stock arrived.
Speaker 1:We then looked at other avenues to sell our products other than just online, and we did explore wholesale, but ultimately found that in order to sell wholesale, especially to some of the larger brands, there's a lot of stock, required a lot of training and ultimately, if they're not specialized in selling the product, they weren't necessarily going to be selling the product to the right customer. And this sort of brings me on to the challenge with a new product, was people's expectation around what the product can do. Ultimately, we weren't 100% sure going into it, the capabilities and when I talk about the capabilities I'm talking about the longevity of a product, the requirements for servicing, how they're going to stand to daily use, as opposed to just someone using them on a sort of semi-regular basis, once a week or whatever.
Speaker 2:Well, I guess, when you're looking at it, so you would have gone through and this would have been probably not thought about in your, as you said, the research stage didn't really happen at the beginning and so these wouldn't have been things you would have considered at all when you're like, hey, I'm going to import a bunch of scooters over from China into Australia, dealing with the servicing side and I guess the flow on effect of there's a lot more to this product than I guess many others.
Speaker 1:A hundred percent, so we actually hadn't even thought about well what's required to keep these products moving on the road literally so through, probably within six months, we very quickly realized that there was a need for spare parts and the need to be able to service, and also the need to be able to fix scooters that have been in accidents. Like any product with wheels, be it a bike, be it a car, people have accidents. So the need, then, to be able to actually fix these products and get the people back on the road as well, and that also, I suppose, opened up what the product was getting used for. What we found with some of our customers was that actually they were using it for the entirety of their journey. Initially, the product we brought in was called Last Mile Rides, so ultimately, what it was meant to be used with was conjunction with trains and buses, where people would ride the scooter to the train station or the bus, catch the bus or the train and then ride the scooter either to work or home, so it was to fill that gap as opposed to walking. What we found was actually the product was used for the entirety of the journey. So actually, people weren't using their cars, weren't using the trains or buses. This was a sole purpose or sole transport for them to get to and from work, to and from to the shops and so on. And so the scooters were being pushed quite significantly. And obviously, australia with its conditions, especially with Brisbane, with the heat, we were concerned about how the product would last. So we then had to relook at the product we were selling, to then upgrade the product to make sure that actually it was suitable for people to use it for their journeys and for what they actually wanted to do.
Speaker 2:Yeah, and at this point you're using your own products. This is your own brand, or which ones you're importing? Ones that have already been manufactured, or what was the situation in terms of actually bringing the product in at that point?
Speaker 1:Initially we were 100% using a product that was existing, so we were basically just buying a product that was off the shelf, so to speak.
Speaker 1:We had no say in any of the specifications and we were hoping that that would work for our customer. What we found was that our customers in Australia actually wanted product that was bigger, faster and could go further. So down the track we then decided to speak with the factories and see what options there were to upgrade the product and to actually have it slightly changed to suit our need. All that was possible, but obviously then came a large commitment around volume and obviously trying to make sure that you're dealing with the right factories and the QC and the quality was there was probably the next biggest challenge. So that was something where we decided we'd launch our own brand called Carbon, which was working with a couple of different factories and basically building a range of scooters that was applicable, that we thought to our customers' needs. We were then able to give those scooters a three-year warranty as opposed to standard 12 months, and that product there, I suppose, ultimately was just better for the consumer as far as what they needed from a scooter.
Speaker 2:Yeah, and I imagine your margins on that would be better as well. Right, because you're not a reseller of a product, you're going direct to manufacture it, to build these A hundred percent, yes, okay. So I guess, being that you were one of the first coming in, what did you find was the biggest benefits of coming to a market? I mean, you didn't know how the Australian market was going to react to these products, and obviously they did react very positively to start. There's probably challenges as well, but what did you find were the biggest benefits of bringing a new product into a new market?
Speaker 1:I think the biggest benefit was the fact that we were the only person that had the product, so we had a captive audience and we were able to set the pricing based on what we thought the product was worth, but also based on what the product was getting sold for in America.
Speaker 1:So the product we were initially bought in had been selling in America for probably 12 months prior to us bringing it in. So, other than being able to set the price, it also meant that we could play around with the marketing and aim it at who we felt the product was suitable for. So we really didn't want the product to be a child product. We wanted it to be aimed at the adults, because we felt that A the market was bigger. But also we felt that there was an opportunity, especially with people that were conscious about doing something that was a bit more environmentally friendly. If it meant that some people could leave the car at home and ride a scooter, that was really quite exciting for us as well. So ultimately, being able to change the way that people would commute was also really interesting, being able to sort of look at that space and see what that meant.
Speaker 2:Yep, and so I guess over time then there's been more competitors coming to the market. It's definitely a different landscape. Now, seven years on, how do you feel that the competitive space has changed over the years, with more to more obviously more competition happening, more regulation. Where do you see the market at this point?
Speaker 1:Yes, so the market now is extremely strong. The last numbers I looked at, there's about 400,000 scooters getting sold a year or got sold the previous financial year. So the market is certainly very strong and we've actually gone through where a lot of people are actually on their second or third scooter because they bought it, they saw a great opportunity initially to use it and they've enjoyed riding one, so they've upgraded it to something bigger, faster. That will go further. So the market has certainly grown.
Speaker 1:The amount of suppliers now you've got people selling solely online. We've seen over the last seven years I reckon I would have seen at least 30 of them turn up and disappear. The great thing for us with the product is that it's very difficult to sell online and not have a retail presence or workshop of some description. It's also not the sort of product where you can't be passionate about it. People have specific requirements from a scooter and you need to be able to give them the right information and really make sure that the product is suitable for them. The other side of it is a lot of these online businesses. They would see it as a trend where they can just jump on the back and just make some quick money out of it.
Speaker 2:Were these dropshipping mostly, do you think, or were they actually buying stock and then selling it?
Speaker 1:Look, it was a mixture. I would say that probably 70% were dropshipping and, interestingly, actually a lot of our suppliers that started bringing in scooters, they actually moved away from supplying to people that were purely dropship because they saw that these guys weren't adding any value to the market. So, yeah, you had the guys that were coming in and setting up purely e-commerce, and then you've got the guys like us that would have a store, a couple of stores that were trying to add some value and give a customer an opportunity to look at the product, assemble it, potentially do test rides and offer servicing and after-sales support. You then got the big box, the likes of JB Hi-Fi, harvey Norman. That would move a lot of volume. Their range very small but extremely well-priced. So the challenge for us was to make sure we were competitive from a price point but also had a point of difference to JB Hi-Fi, which is range, which is service and, obviously, the knowledge of a product.
Speaker 2:Yeah, and by adding that extra value, I guess it's given you the ability to not be competing on price, completely competing on price Because, as you said, with all these dropshippers and business popping up, it makes it very hard to not, especially in the Google shopping feed. You're just sitting there looking at the same product with the price tag next to it. So by having the brand that you'd established over the last seven years, it gives you the ability to say, all right, well, it may not always be the cheapest, but look at all these extra value that iScoot's adding when you're purchasing from us.
Speaker 1:Definitely, james, and I think that's been the constant thing for us is looking at what is our competitive advantage, what can we do slightly differently? And for us, obviously having the range, the fact that we can do servicing but ultimately we can sell additional warranty, we can trade in your scooter. So if you've had a product for X amount of time and you want to upgrade it for something else, we do trade-ins as well. So ultimately we feel we can look after the customer on their whole journey while owning the product.
Speaker 2:I guess, also growing with them as well. So, as you said, not just from that first scooter, then you're there, from that journey of upgrading to the next one and having a range large enough that they can continue, and then, I guess, with the kids ranges as well. You're then sort of supplying for the whole family in this category.
Speaker 1:Definitely, and I think that was the advantage of having a couple of showrooms where we could see firsthand that the parent would come in looking for a scooter for themselves. The child is then feeling a bit left out and saying well, what about me? And so that's where we looked at the range and we started bringing in children's product and that became a big part of our business, especially going into Christmas. So the challenge I suppose, trying to have all these different types of product, is keeping parts available for all of them as well, because regardless of the scooter, you've got to have the backup of the parts for them. With the children's product as well, having that safety factor, having three children myself, just making sure that the scooters are coming in with the right compliance, have been tested properly.
Speaker 1:And because the industry's grown so quickly, there has been product out there that's come in that hasn't been fit for purpose, which we've been able to touch wood so far been able to avoid. But ultimately it has put pressure on the industry and particularly with some of the guidelines and the laws that have come out from the government, which is a good thing. With the children's product, there's been a lot of new growth in that space. The quality certainly for most manufacturers is there, but ultimately there's a few manufacturers that have not focused so much on the quality. It's been more about volume. In saying that, though, we've also seen a lot of factories disappear or change what their scope has been and actually transition into other products such as skateboards, bikes and whatnot as well. So it's been a very interesting space where retailers and the factories have thought this is something that's relatively easy and haven't always invested correctly in the product itself.
Speaker 2:Yeah, and so going. I guess now I think you've got the biggest, or if not one of the biggest, ranges of electric scooters on the market in Australia. In terms of brands, how did you get from the point of you're bringing in carbon as your own brand? You've got a small handful of brands, but how did you, I guess, get access, Because I know a lot of listeners who potentially might be like all right, I want to start an e-commerce store. I've got this idea, or I have an idea for this product, but then being able to, I guess, access suppliers and build out a really strong range, how did you go about that process, and was that done over a long period of time, or was it something that you found was quite fast? Or what happened there, without giving away all your secrets, obviously?
Speaker 1:Initially it was really as I said we fell into the market and just came across a product. But then, by aligning ourselves with an agent overseas in China, that really understood what we're looking for, he then did a lot of the groundwork to find the right factories In China. You've got the manufacturers, then you've got agents selling for the factories and then you've got agents selling to the agents. So there can be several layers of margin if you're not going direct to the factory. So it's super important for us to be dealing with our agent that was going straight to the factory A to save on margin but also to ensure that the product was the right product and it was getting made with the correct Australian standards as well. So it was certainly a challenge to begin with, but as our business grew we actually found a lot of the suppliers came to us. So I would say almost weekly a new supplier will send an email to myself talking about what they're doing and basically advertising their business and their point of difference. So there's a lot of manufacturers. In fact, I would say now it's to the point where it's a little bit saturated in China went from being only a handful to now there'd be well over 150 factories in China that are manufacturing this product.
Speaker 1:So the other interesting side to this is about the brand as well. So, unlike building products that I've sold previously, a lot of factories will make the same product for different companies and put a different brand on. So the challenge then is also trying to have that point of difference. So, for example, there's products in the Australian market where there's seven or eight different companies selling the same product but calling it seven different things. So the challenge is do we want to be part of that or do we want to venture away from that and have a point of difference and try and build a market around a product that's a little bit unique? Now, ideally you want to have something that's unique, but ultimately you don't want to be too unique that it doesn't sell.
Speaker 2:Yeah, okay, and so let's talk about returns, because we know most e-commerce businesses, this is, it's just a fact of running the business. But when we're talking about electric scooters and a new product and a product that, as you said, is getting a lot of wear on it, how have you dealt with that and what kind of challenges has that brought up for you, being that this is not a light product you're not sending back a t-shirt in a bag. How have you approached that process and have you found? What have you learned over the time? Because I'm sure what you were doing seven years ago is probably very different to what you're doing right now?
Speaker 1:No, 100%. Originally, our first product that we bought in it was costing us, on average, $28 per scooter to send out pretty much anywhere in Australia. Now that's jumped up to circa $90. So it's a massive part of our costs is the freight, but when it comes to returns, ultimately what we're trying to do is educate the customer as much as possible, and that really starts before the purchase, and that's around qualifying the customer, finding out what they're looking for from a product. And that's around qualifying the customer, finding out what they're looking for from a product, and that's where we go through online, you know, are you looking for something that's light, that's fast, that's long distance? All these different categories and then basically trying to find a scooter that's fit for them and their budget.
Speaker 1:So the first part of it is really finding a product that is right for them, and again, that sounds very simple and obvious, but initially we weren't, and so we were. We were, but we were, but several times we shipped scooters to customers that were expecting something completely different and obviously, being an online business and a business that reliant on having happy customers, we're then having to bump the cost of that to return the product to us to then either refund or find something that's correct. So we'd certainly learned most of our lessons the hard way. But but ultimately, like any business, you want happy customers. So really understanding the customer, giving the right product initially.
Speaker 1:Now if that product for some reason failed, then certainly we had dedicated workshops around the country that we could get the customer to send that product to for repairs. So ultimately we tried to limit as much of the freight coming back to Brisbane as possible because a lot of the time the cost involved but also the risk of the product getting damaged and nine times out of 10, the customer threw away the packaging anyway. So logistically it was almost impossible. So we've obviously tried to limit returns as much as possible from a warranty point of view and making sure that the product is safe and fit for purpose. That's really where it comes down to working with the right factories. So we try to eliminate factories that have had higher than normal failure rates and then really work with factories that we know and trust, where we know the failure rate is extremely low.
Speaker 2:I think a fun fact as well, I guess, is that you guys well, not probably fun for yourself, but you guys have experienced more theft of deliveries, in terms of when you're sending stuff out, than I think I've heard from any of the clients that we've worked with. It just seems like a product that is just being spotted in the freight journey and just disappearing. Is that something that I guess? I guess obviously couldn't have anticipated, but something that you've had to deal with as well?
Speaker 1:Definitely didn't anticipate it and ultimately it's a product that is, as you said, it's highly vulnerable to getting stolen. So we've had to come up with different ways to try and be creative, ultimately wrapping the product in black plastic, which again is an additional cost to the whole process of being able to ship something out. But that has eliminated majority of the theft Over the last couple of years. So we have also seen much better tracking through our freight providers as well, to the point where the freight is actually scanned in at every single location, every single touch point. Now the freight is getting scanned, so it's much less likely to go missing now because of a constant scanning. So processes at the back end have certainly changed, for us with the wrapping of the product, but also for our freight providers as well. They've also stepped up the game as well.
Speaker 2:Well, it's good to hear, since they're charging you four times the price they were originally.
Speaker 1:That's exactly right.
Speaker 2:yes, yeah for sure. Okay, so obviously, when the scooters have started hitting the streets, especially around Brisbane with the, I guess first of all just seeing people riding around on them and then the ride share that was popping up everywhere with the little scooters sitting on the corners, it was already sort of, I guess, creating a bit of a buzz around the neighborhood and people are starting to talk about and probably start searching for them. But I guess where do you feel the strongest part of generating the online sales were coming from in terms of your marketing, and how was your approach to that?
Speaker 1:Yeah, look really good question, and I think there were several things that we did. We had a really good website that we launched, initially through Shopify, and that website was extremely easy to navigate. It highlighted the product extremely well as far as great images, videos around, what the product could do. So I think having a strong website is absolutely paramount. But ultimately, if no one knows you exist, no one knows you exist. So the challenge then was obviously to divert traffic to that, and that was where paid Google was just absolutely critical.
Speaker 1:So we invested quite heavily in Google Ads and certainly we saw significant results. You could see a direct correlation between investment versus sales. So we played around with all sorts of strategies around trying to spend as little as possible to get as much as possible, but ultimately, with any new business and a new product, we had to invest, but we certainly got some great return on investment. We also had some really good Facebook and Instagram following as well and advertising, and we created some events. We did ride days. We launched some quite good sales through Facebook, which got some really good traction as well. So for us it was really sort of focus on the local market through Facebook and Instagram, and then Google was talking to the whole of Australia.
Speaker 2:Yeah, I mean we're lucky, dan. I think this was at the point where I met you and we started collaborating together. This was the first project we collaborated on, I believe, and so I guess introduced from a mutual connection, and we, I guess, when you came to us and said, hey, we're going to sell scooters, we thought you meant the little kick scooters and had no idea what we're in for for this category. And I mean what we're in for for this category and I mean we're so excited to be a part of it because, I mean, you guys turned up with the cool scooters to the office and there was something that we'd never seen before. And when we put these on Google, it just took off.
Speaker 2:People were searching, there was very high intent and this wasn't a cheap product. So, for a campaign and, as you said, we started with quite a small budget and then, by scaling it up, we're consistently hitting about a 20 ROAS, which I mean $20 back for every dollar in within these campaigns, and it seemed very scalable and as scooters were becoming more popular around different cities and I think legislations were changing and the rules were changing, it just opened up more markets as to where it could turn these campaigns on which we knew would work because they'd worked within the local area, and then overlaying it with the Facebook and the remarketing and really educating people on the environmentally. You know elements of it and the different angles. It really did take off so quickly for a new product in a new market and it was the first time that we were, I guess, had the experience of seeing such a fast uptake within a brand new product category.
Speaker 1:Yeah, definitely. Experience of seeing such a fast uptake within a brand new product category? Yeah, definitely. I mean we were very unsure about how quickly it was going to take off, and we sold for our first container quicker than we we could imagine, and I think probably our pre-sales were 40 of our total supply coming in at the time, which we were blown away by and what we then found that word of mouth was extremely strong as well. So people that had purchased from us online, they would take their scooter out, ride it in the street and the next door neighbor would be going well, where did that come from? And people at work and so on.
Speaker 1:So all of a sudden we actually our first issue was not having stock and then having to place orders with China. They were then taking off as well because the product was growing so quickly throughout the world, and so then the challenge was having to wait. So probably one of the biggest frustrations was we built the market and then couldn't supply, and then we had to then build it again when the stock came back in. So we lost that bit of traction. So look in hindsight, would we have ordered more stock? Definitely, but did we know it's going to take off so quickly. We didn't have a clue, to be honest.
Speaker 2:And it's not a cheap product either. I mean, when you are investing, you're not talking about just ordering a few boxes of a low cost product. So I mean there was a serious investment from that initial point too.
Speaker 1:So you did take quite a bit of risk on your part at that point. Definitely, and much to my wife's dismay, our first container I actually got dropped at home and we had a 20 foot container sitting on the driveway for two days where myself and some friends hand off, loaded 300 scooters into the garage and we dispatched from there. That was very quickly short-lived for obvious reasons, and we obviously saw that. You know we needed to do it properly and utilize our own warehousing and and the mixture of that and 3pl down the track. But yet, to your point, it was circa 180 000 for that first container, plus and obviously the cost of building websites and everything else. So we were very nervous to begin with because what ultimately was let's launch a product that is new and exciting and see what happens to. Okay, this does need to take off. We've got some serious investment here. It can't fail.
Speaker 2:Yeah, yeah, and it definitely did not. It's been a market that, as you said, I think that you guys really helped grow it within the Australian industry, which has been great.
Speaker 1:Yeah, I appreciate that, james, but I think certainly we were very fortunate to align ourselves with some great marketing people such as yourself and Alex Chapman as well in the later stages. So we've had some really good support. We've had people that have been really passionate about our product as well, and I think that's probably the key to it is working with people that understand your business, that are also passionate and want to see you grow. I remember getting text messages on Saturday mornings from yourself saying Mark, I think we can invest some more in the marketing. It's going ballistic this weekend. I'm like James, I trust you Just do what you've got to do, sort of thing. So you know very grateful to having that and been able to sort of you know, know that you've got people on your side helping you succeed. Yeah for sure.
Speaker 2:It's super important. Yeah, For sure. So what's next? So what's the next thing for iScooter and yourself?
Speaker 1:Just one of the things I did want to talk about was the challenges around legislation. So, coming from a building industry where you're selling product that is technically what they call a dumb product and then selling a product with moving parts that is high risk, it was very interesting. The challenge was obviously different councils had different rules, different states had different rules. So the product and still to this day some states haven't made the product completely legal to use. So the challenge was trying to work with the different councils, trying to stay within the boundary of making sure the product was legal to use for our up. And we followed the different conversations and we went and basically spoke as a group of resellers, but also as a group of people that were looking to change the legislation around how the product gets used in different states, and with that we literally flew all over the country and attended meetings. We had varying degrees of success. Some people really embraced the product and attended meetings. We had varying degrees of success.
Speaker 1:Some people really embraced the product and they thought it was a great opportunity to take traffic off the roads. Other people saw it as just too dangerous. So it's like anything. I mean the product can be dangerous in the wrong hands and that really also helped us with our sales around making sure consumers were fully aware of using helmets. All scooters have to be fitted with a bike. The correct way or correct places a scooter can actually be ridden. So again, every state is different. Some states you can ride on the road, some you can't, and so on. So really education was a key then and that probably was a big learning curve for us. It wasn't a case of just selling a product. It was actually a case of working with the local authorities and obviously educating our customers.
Speaker 2:Yeah, and I'm sure when you're ordering that first shipment over, these aren't things you're thinking about at all. Not at all.
Speaker 1:And then when there was talk about it, certainly there was a lot of concern. When we're committed to our second, third, fourth container and the stock's on the water and then you hear that there's been an accident and you're thinking to yourself I really hope this product doesn't get banned, and it's sort of yeah, that was certainly concerning in the early stages.
Speaker 2:Definitely so, I guess we've come from. Over the last seven years, gone from zero sales to being one of the largest suppliers of scooters in Australia. What's next for your journey within iScoot and this industry?
Speaker 1:For us as iScoot I mean, really we've hit the tip of the iceberg. We feel there's a long way to go. We see there's a big opportunity in providing backup service and after-sales service for people that haven't necessarily even bought the product from us. So around the servicing and really supporting people through parts. So we're also diversifying our range and we've introduced electric bikes, e-moto, which is electric motorbikes, skateboards and also ride-ons, such as some of the products that comes out of Razor and Micro. So we've actually been able to align ourselves now with all of the big brands in Australia, but also in America as well. So our range has grown to probably over 600 individual units.
Speaker 1:We're heavily focused on our retail experience as well and been able to bring people in and really sort of go through that selection process and having a great in-store offering for them.
Speaker 1:That's going to be supported by opening up new stores in new states over the next 12 months.
Speaker 1:But ultimately we want to continue to make sure we're selling a great product at a great price and then backing that up with good service, and for us there's still a lot of work to do in that space and we don't get it right all the time and we learn from our mistakes, like anyone does, and ultimately, I'm as good as the staff around me and I think we've got a really good team and that the team is still fairly new.
Speaker 1:The industry is still new, so we're constantly learning ourselves. We're constantly working with our suppliers around improvements and, ultimately, we're heavily reliant on our customers, and our customers have been absolutely fantastic in supporting us on this journey. We've had customers that have come back four or five times upgrading their product, bringing their neighbors back, bringing their relatives back into the business for us, and we really appreciate that repeat business and that support and, ultimately, listening to the customer, and the customer has helped push us where we need to be, and a lot of that is around having the backup parts, so when something goes wrong, when there's a puncture, when there's an accident, we've actually got the parts at hand to be able to fix them. So, yes, that's kind of where we're going and the future.
Speaker 2:Yeah, okay, nice. Final question how often do you ride a scooter?
Speaker 1:Not as often as I'd like. To be honest with you, james. I would ride a scooter every single week. I probably do maybe half an hour on a scooter, and it's predominantly during work times, if I've got to go to the bank or to do some kind of errands or go get a coffee or something. So it's purely for me, for pleasure, and to remind myself how much fun it is. As I've always said, james, you never see someone riding a scooter without a smile on their face. And it still brings a smile to my face. I wish I could ride a scooter to work, but logistically it doesn't work because I'm dropping off kids. But no doubt there will be scooters down the track where I'll be able to put my whole family on.
Speaker 2:Yep, okay, looking forward to it. Well, thank you for your time. Today, mark, I found that anybody who's been listening has really got a good idea of, I guess, first of a lot of the challenges that are involved in it, but also the opportunity that it can be from. Entering a market is completely new and in a new space. So thanks for your time. No-transcript.