BikesOnline streamlined global payments and reduced FX risk

Riding the momentum of their local bicycle tour business on Sydney’s northern beaches, eCommerce retailer BikesOnline was born.

Co-founders Jonathon Allara and James van Rooyen identified a gap in the market and set out to transform the traditional bicycle market industry. At the time, the industry was dominated by a few players with steep prices. 

Here lay the opportunity to shift gears: eliminate the wholesale middleman and tap into a growing market that traditionally favoured in-store purchases. In true Australian spirit, the duo decided to give it a red-hot go, testing the waters on eBay with a container of bikes sourced directly from overseas manufacturers. The bikes sold out within three weeks.

Buoyed by this success, they established their online bike store, evolving into a full-fledged eCommerce business.

Today, BikesOnline boasts an impressive handful of brands, introducing the Polygon and Marin brand to Australia and the US, along with their own brand of everyday bike parts and accessories. They’ve embraced the rising demand for e-bikes, a savvy move that not only caters to a growing trend but also dismantles traditional barriers to cycling.

Managing a global operation with suppliers in Indonesia and China, the business largely handles payments in US dollars. Seeking a better exchange rate than what their bank was offering, BikesOnline turned to OFX in 2017.

Navigating the complexities of global trade, particularly the unpredictable shifts in exchange rates on invoices, can pose many challenges for businesses. The potential impact on budgeted costs underscores the substantial risks associated with FX volatility.

In this regard, the business found a reliable ally in OFX’s currency hedging tools.

“By locking in exchange rates for future transactions, Forward Contracts have provided us with cost certainty. This is especially beneficial when ordering new stock from Asia, as it ensures that the cost of these orders does not increase due to unfavourable shifts in exchange rates.”

“Knowing the exact cost of the bikes we have purchased in advance allows for more accurate cash flow forecasting. This predictability helps in planning for other expenses and investments, ensuring that the business operates smoothly without facing liquidity issues,” said Jonathon.

The business experienced a further notable boost in operational efficiency upon discovering OFX’s unique offering. This solution not only eliminated the risk and frustration of double-handing across multiple platforms, but OFX’s proactive team ensured no challenge was deemed “too-hard”, delivering tailored solutions that addressed the specific needs of the business.

“OFX has been a game changer for us as we have been able to create Forward Contracts,  process approvals, have greater visibility over our team corporate cards and introduce an expense reimbursement process all within one cohesive system,” said Jonathon.

BikesOnline has experienced exceptional growth since their inception, attracting families, professional cyclists and weekend warriors alike in Australia and the US. Safe to say, the business has gained serious pedal power, simplifying their financial operations and optimising their global payment processes along the way.