PRESS RELEASE: Norco BicyclesWe are launching our online shopping platform to provide the ease of e-commerce while still supporting local bicycle dealers.
The online shopping platform is a milestone for us and a boon for bicycle enthusiasts across the country. Local bicycle retailers will benefit significantly from the initiative with the e-commerce platform providing an uptick in foot traffic to brick-and-mortar stores as well. Moreover, retailers will benefit from the purchase of additional in-store bike-related items as well as earning margin dollars from fulfilling the initial bike sale. Statista estimates that online retail sales will top $47 billion (USD) in Canada by 2020, which is approximately 10 percent of all sales. However, despite online sales burgeoning, experts from the Retail Council of Canada say that online sales will not replace brick-and-mortar stores. With the public preferring a ‘click-and-collect’ model — to order online and then pick up their order in person.
| Norco is always striving to live up to its commitment to our independent bike dealers. By blending the ease of online ordering with exceptional in-store customer service offered by Authorized Norco Dealers, we are driving online to offline consumer relationships. The potential for dealers to set the bar for customer service is also an opportunity for them to encourage relationships that could potentially lead to further in-store sales.—John Williams, President of Norco Bicycles |
He explained that “the click-and-collect system is frictionless for both the public and the bicycle dealer. Providing high-quality service is at the root of our business so we have real-time tracking that allows the customer to know where their product is at all times. Dealers also benefit from bike sales of specific models that they don’t have in stock.”
After launching in Canada, we plan to expand our e-commerce platform to the US in 2019.
Visit
www.norco.com for more details.
MENTIONS: @norcobicycles
It sounds like a good solution to some of the problems people have with online bike-shopping.
Some stuff needs a professional to get sorted out- win/win imo.
Poked around trying to see if my local shop comes up, but after going through FIVE different bikes trying to find one in stock I'm left a bit confused...did I really just have that kind of luck to pick the only bikes not in stock or what the heck?
What this program does is provide bigger margins to Norco...
I bet you on this program, it is similar to the Trek program. Normally, if a dealer orders the bike for inventory as a booking order, let's say they get somewhere between 30-40% margin on a high end bike...but the shop doesn't want to sit on multiple $6,000 bikes...so they only order one in large and one in medium. Well they sell those and tell customers they can order them one in (no test ride, special order, no refunds). So the customer orders online, and the shop probably is only getting a 15-20% margin on that on-line sale...so the shop loses out on margin (but doesn't have to inventory), and I bet that that sale doesn't count towards their booking order discount in re-orders.
The dealer makes less margin and doesn't have this count towards their booking order discounts. The customer loses out (pays full retail). Norco makes out like a bandit....
What should happen is the retail prices all drop by 15% and the shop gets a 20% margin for online sales or 25% if you have demos, which is plenty if you don't have to tie up capital in stock. The current model is unsustainable.
The sooner shops concentrate on service and small parts stocking instead of being greasy salesman the better.