The Newest Threat to Independent Bicycle Dealers – Data Feeds

Lilydale, Vic

I’ve spent 18 years in a growing family bike shop that has seen many challenges & changes over these years. But none that pose such a huge and overwhelming risk to the future of bicycle retail “as we know it” compared to the latest technology driven, AI built sales strategies born in the most recent post-covid years. Specifically, I’m talking about live feeds to marketplaces. These include generic marketplaces such as Amazon and Bunnings and specific bike industry focused marketplaces.

The 2019 – 2022 Covid years saw a huge growth in bicycle supply and demand. Sales were through the roof, profits industry-wide were healthy and bikes were trendy. We saw new brands enter the market, some old brands rejuvenated, and large bike businesses stamp their authority on markets with company owned stores & partnerships.

“Data feeds and marketplaces are a slap in the face for all good bike shops.”

Along came the post-covid bust: a major slowdown in sales, overstocks, brand shuffles & bike brand bailouts. The global and national bike industry was hurting, and the desperation to stay in business has been clearly visible.

Two years down the post-covid road and our small but vibrant industry now has its biggest challenge, and I’m not sure anyone knows how to combat it! Data feeds and marketplaces are a slap in the face for all good bike shops.

Data feeds are an action by which stock on hand reports from wholesalers containing very basic inventory listings are shared with IT based businesses to advertise many if not all the products in suppliers’ warehouses.

These IT businesses are data gathering businesses only. They often gather live data from suppliers & process this data using AI technology to write product ads that are then shared to multiple online sale platforms, ie marketplaces. These marketplaces are not bike shops. They are department stores, hardware stores & the biggest multinational technology online stores that simply process the sale and take their cut. They are a primary reason why multiple independent bicycle dealers will have to close their doors – and some already have.

This is not just about losing some sales, or the revenue, or the margin. Our priority is to open our distributors’ eyes to the industry damage that they are causing, all for a few extra sales, in what is a very desperate time.

As a bike shop business owner, our industry is our passion, we are proud to demonstrate the products on the shelf that are well developed, well priced and sought after. A bike shop is a local hangout, a meeting spot, a place to see new products, gather advice & emerge yourself in the outdoor possibilities. This will never wholly disappear, but the choice of product on offer, the range of items and the passion to stock the latest and greatest in our stores will shrink dramatically, if there is no protection enforced by our brand / distribution partners.

My word to you all – make some noise! Express your frustration to anyone that will listen. Use your independent business dollar spend as a warning to those that have the power to cut the feed. Be sure to stamp your foot at the distributor that allowed your favourite helmet brand to be purchased at Big W online, or your best-selling light being sold at Bunnings, or the Bike Rack that you so kindly educate a unknowing customer about, being drop shipped via Amazon.

There is no time like now to make a stand, many of these new marketplace resellers are in their honeymoon period. These wholesalers still remember you, and how much business you have done with them.

Over the past two years, they have almost sold all their distressed inventory and are edging closer to normal stock levels. But if we don’t shut these feeds down now, they will be there forever, running wildly low prices, and we as Real Bike Shops will have very little point of difference. I urge you to check every marketplace you know, find the products that you stock and get noisy!