Trek opens online bike sales in Canada

Online shopping is changing the bike industry. Even before 2020 gave us all incentive to shop from a distance, consumer habits were shifting. This change has historically been seen as putting traditional brick-and-mortar bike shops at odds with online retailers. Trek, who just launched its own ecommerce system in Canada, is looking to resolve that tension.

How do you keep up with the increasing demand for online shopping and continue to support the local bike shop? Trek’s ecommerce system takes a different tact than being just consumer direct. It’s one that has already proven successful in other markets.

I talked to Taylor Cook, Trek’s Canadian Marketing Manager who has spent the last 8 months developing Trek’s Canada e-commerce site, to find out how the new system works, and why it’s different than the direct-to-consumer model.

Why ecommerce? 

From Trek’s perspective, developing some kind of online system isn’t just one option, it is now mandatory. Web traffic on trekbikes.com has hit an all-time high, and customer intent to purchase online is increasing. All this was building momentum before COVID, too. With a massive influx of new riders this year, Trek was looking for a way to retain customers but also to connect them with their local dealer network.

COVID amplified the need, and accellerated development. But Trek has already had success with the model in the U.S. and in the U.K., where the brand’s eCommerce has been live for 5 and 4 years, respectively. “Even with limited bike availability this year, online sales in both those markets have seen major growth,” says Cook. Canada is the third market, with more in the works.

Trek vs. Consumer Direct 

The past decade has witnessed the rise, and massive success of several consumer-direct brands. Where previously online retailers competed with LBS sales, now several prominent brands operate exclusively on a direct-to-consumer basis.

Trek, though, is not interested in doing that.

“We’re a hospitality focused company,” says Cook. “We want that hospitality to be both consumer-facing and with our dealers as well.”

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Instead, Trek is looking to provide an alternative for those that want to shop online – so that they’ll stay with Trek – while introducing them to, and supporting their local Trek dealer.

That dealer support comes in several ways. One part is financial. Dealers receive a commission for all orders that are Click and Collect at their store, and all bikes ordered online must be picked up in store or via Home Delivery by a local Trek retailer. Cook says dealer commission on these orders will be essentially the same as if they sold the bike in store, after factoring in credit card fees and shipping expenses.

Accessories and parts, though, can be ordered directly to your house without the shop being involved. But again, Trek retailers will receive a commission for any referrals to the online store, including all accessories and other products.

The second is messaging. Trek’s website encourages consumers – at several points in the purchase process – to engage with their local dealer.

“We really built this around keeping our dealers involved in the online experience. Our on-site messaging is really focused on encouraging people to pick up in-store,” says Cook. “We really want to connect new customers with their local dealer.” For Trek, that means offering options like free delivery when picking up orders in-store, even on smaller items.

“It might start with a helmet purchased directly online, but our goal is for that ultimately to be a bike and include the retailer.”

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What about supply? And backorders?

With the COVID bike boom, there’s been a global shortage of bikes, parts and accessories, making this equal access to inventory crucial. With many bikes on backorder, or pre-order awaiting resupply, dealers will have first dibs. That means your local dealer is still the fastest way to get your hands on the Trek you want, if what you want isn’t in stock online right now.

“You can’t pre-order a bike, or backorder a bike online. You have to do that through your local dealer,” says Cook. “We have Spring level of bike shipments arriving every month now through the summer. Dealers already have those bikes on order. So the best way to get a bike right now is to preorder it through your local dealer.” All pre-orders made through local dealers will be delivered before open stock is added online.

Trek will not be holding back any inventory from dealers for online sales, and it will not be undercutting MSRP online. Consumers will see the same price online as in person in store.

What does ecommerce add, then?

For consumers, it is another option way to shop. To ensure the ecommerce experience is as complete as the in-person shopping is, Trek is expanding its online presence with editorial content and tools like Live Chat.

“It’s about helping equip our customers from an educational standpoint so that when they do go into stores they are less overwhelmed.”

For added convenience – or reduced contact – Trek also offers a Home Delivery option for all bikes purchased online. The bike still goes through a local dealer, which have the option to participate in the program and will receive the delivery fee.

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For some of those customers, online is the easier way to approach buying a new bike.

“Our goal for Trekbikes.com is the ultimate bike shop online. We’ve introduced editorial content – how to buy a bike online, or size a bike online – to help inform our customers. We’re seeing so many new people, and people new to cycling that we need to engage with.”

For Trek, it means the ability to retain customers that prefer to shop online, or first engage with Trek through the brand’s website, without alienating the dealer network they rely on.

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