The evolution of bicycle mail order

Before the internet, (yes, kids, there was a time when there was no internet) bicycles were not generally sold via mail order. Almost all new bikes were sold through bricks and mortar bicycle stores. These are what some people used to call Mom and Pop shops. Anyone who was a young boy or girl fifteen or twenty years ago remembers the thrill of getting their first bike in one of these places. You would walk into the store absolutely filled with shiny, colorful bikes all over the floor and hanging from the ceiling. It was almost too much to take in. Of course, most of us, as kids do, chose the most elaborate, fun looking bike we could spot. It rarely came true that we got that one, because which bike came home with us was not really our decision. Mom or dad had a budget in mind, and had read the ads about how much a bike would cost.

Things began to change, at the turn of the millennium. Many online bicycle oriented mail order outfits opened for business. Most were only selling parts; however, as they found more and more success, (the internet is a powerful selling tool) they moved into bicycle sales. Needless to say, the established bike shops on the streets were not happy, since their retail sales dropped dramatically. Soon after, bicycle shop owners and their associations filled the trade journals with ideas about ‘rigging’ the market via ‘price fixing’. Bicycle retailers were firm on their opinion - they simply refused to negotiate prices. Their determination about the price fixing concept eventually gave birth to MAP (Minimum Advertised Price), which would put all retailers on the same level (in their advertisements at least) and it would not allow online sellers to compete with local bike shops based on advertised price alone. The MAP did allow manufacturers with new brands, like ours, to compete on price because we had an exclusive product. By selling consumer direct many new companies found efficiencies that did not exist before.

Starting in 2016 everything changed, the biggest brands in the industry Trek, Specialized, and Giant started selling online directly to consumers. Many other brands have followed suit, and those that haven't are in a rush to get online.

Today the bike trade journals are still littered with silly ways to artificially fix prices. Most shops complain about being fiscally insolvent and refuse to change their ways. Mobile bike shops are taking over the repair market to add to bike shops retail problem.

The Downtube started import folding bikes and selling customer direct in 2003, I guess one could say the big brands have followed our lead... it just took them 13 years to catch up.

Are you interested in reading what bike shop owners think? Take a look at Bicycle Retailer.