Velo Media

Go Where the Customer Is: The Case for Amazon

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To sell on Amazon has historically been a hot button issue for cycling brands.

 

The colossal online retailer is notorious for deep discounting and undercutting retailers. But the whole story is much more nuanced.

 

Customers Love Amazon

 

73% of US households have an Amazon prime membership. Amazon is currently operating in 9 major European countries.

 

There is a myriad of reasons why Amazon has been so successful over the last two decades. Amazon provides unrivaled selection, great customer service, and often low prices. For these reasons, the number of customers on Amazon is massive.

 

The Amazon one-click shopping experience with free shipping for prime customers is unmatched. To ignore this fact is irresponsible for any brand operating in 2023.

 

Brands want to (over)protect their Distribution Network

 

For years most cycling brands have been reluctant to work directly with Amazon due to the potential conflicts with distributors and dealers. The dealers feel that Amazon is undercutting their prices and stealing their customers.

 

The reality is much more complex. Amazon provides and additional sales channel for brands. Dealers simply cannot compete with the service that Amazon provides. But that’s doesn’t mean the end of dealers, it means that dealers must adapt.

 

Dealer Strategy

 

To continue to be relevant, Dealers have had to change their strategy in response to the unrivaled assortment and service from Amazon and other large online retailers(I will talk about this in a future article).

 

Most dealers have doubled down on products that Amazon doesn’t typically stock. Bikes, Frames, and Wheels are some examples of items that are complex to sell and therefore require dealer support. Dealers provide a personal relationship with customers both, at the moment of purchase, and throughout the life of the bike.

 

Amazon Friendly Categories

 

Amazon purchases are typically made when customers are searching from their computer and have an immediate need. Some popular items on Amazon include tapes, mini-tools, tires and accessories in general. Clothing, supplements, and helmets are also hugely popular on the site as they

 

Lack of Control

 

Brands reluctant to sell on Amazon often cite the lack of control as one of the motivating factors for staying away from the platform. While pricing can be controlled on the Amazon Seller Central plaform, the more lucrative Vendor Central platform does not allow for brand price control.

 

It’s about the customer, duh!

 

In the end any debate around whether to use a platform like Amazon is moot, as the customer decides in the end where they want to shop. If customers are shopping on Amazon, then brands need to be there to serve these customers.

 

I am a Prime subscriber, and I purchase on Amazon at least twice a month. I can honestly say that Amazon saves me time. My 10-year-old son recently asked me why I shop on Amazon rather than a local store. I explained that the time it takes to leave the house, go to the store, without the guarantee that the product will be available is just too big a risk.

 

Times have changed and brands need to change with them.

 

Happy riding.

 

Wyatt