Bicycle Retailer reports that Giant USA will begin direct-to-consumer sales via their website by August 2016. However, in this case “direct to consumer” is a bit of a misnomer, because while parts and accessories will be drop shipped directly to the buyer’s front door, a Giant bike purchased online will be shipped to the closest Giant dealer for the buyer to pick up.
Here’s an example of the pricing structure for the IBD:
An outline of the program would give dealers 100 percent margin on the advertised retail price (ARP) ordered online through the Giant USA website to those dealers who normally stock the bikes that are ordered less a 2.5 percent credit card fee and any financing costs.
Dealers would only receive 80 percent margin if they don’t stock the bike, and they also must absorb shipping costs, similar to if they were special ordering a bike.
While this program is similar in some respects to the one that Trek launched last year, it appears that Giant dealers won’t experience a loss in margin. Also, while the bike will be shipped to the local dealer similar to the Trek model, in the Bicycle Retailer article there’s no mention of trying to develop a home delivery system similar to Trek. This appears to simplify the plan for buyers and shops: buy the bike online, pick it up at the shop, and done.
