Rather than sell via the world’s most popular online retailer, Pacific Northwest Components is pulling their mountain bike products from Amazon and putting them in local bike shops, many of which are facing limited stock due to continuing supply chain issues. At least for the time being.
In a statement released Thursday, PNW said they expect to still have a limited supply and an overloaded supply chain for the foreseeable future and need to put their products in places that will best benefit their customers, and the click-through nature of Amazon can’t replicate what a bike shop can offer.
“We’ve learned the best way to support our customers is to ensure they have the information and resources needed when making a purchase. Not only is this best for our customers, but it is good for business, too, as it minimizes returns that result from confusion on which spec to choose at the point of purchase,” said Aaron Kerson, Co-Founder and CEO of PNW.
“Moreover, in a time when inventory is tight, the best way we can support our business partners is to empower them with product and make decisions that keep dollars inside the industry, especially important for small, independently owned businesses.”
PNW is coordinating with their network of retailers to pull all of their products from Amazon across the site. To make the transition as seamless as possible for consumers, PNW has lowered their threshold for free expedited shipping for free 2-day shipping to $40 or more.
While this is a pretty fresh topic for the bike industry, many brands across the US like Nike and Ikea and others have pulled their products from Amazon in recent years, which according to CNBC, controls 38% of the e-commerce market. These brands cite products and competition from counterfeiters and unauthorized sellers or even Amazon’s own private label which can undercut the profits of reputable companies.
While Amazon Basics probably won’t produce a dropper post lever or grips anytime soon, there are quite a few shoddy-looking options on the platform and local bike shops will likely be happy to have a few more products on their shelves.
Good call by PNW. One of the issues they cited, counterfeit goods, has gotten increasingly bad on Amazon in recent years.
I suppose that works great in most circumstances, but the nearest bike shop for me is over 15 miles away. So there’s no “local” shop and I get my parts online. I love PNW products so I’m sorry they won’t be available without a trip to a local bike shop.
The PNW online store is still up (and will continue to be based on the note about 2 day shipping) so you can order from there still. Which begs the question…
PNW has built enough goodwill lately that I won’t judge their motives too harshly. But it’s a little hard to see how this is a move to support shops when they’re keeping their online store active. Seems more likely that Amazon is a lower profit sales route and so is first on the chopping block. Which, great, seems like a no brainer. But not exactly a groundbreaking decision.
Um. MSRP vs. MAP.
PNW site will be MSRP and the LBS can sell at MAP and there you have it.
MSRP Manufacturer Suggested Retail Price
MAP Minimum Advertised Price
Most manufacturers have price lists that show wholesale, MAP and MSRP. Some regulate it to the point that if caught, a reseller can lose their product line access.
This is probably the best news I have heard in a while. Time for the rest to join in.