In recent years, the cycling industry has seen a remarkable shift in how consumers shop for bikes and accessories. No longer confined to brick-and-mortar shops, cycling products are increasingly purchased online — a trend catalyzed by convenience, competitive pricing, and rich buyer information. This article explores how shopping transactions in cycling have surged to record highs, focusing on the mechanisms, drivers, challenges, and future outlook.
The Rise of Online Cycling Transactions
Cycling-related e-commerce has seen explosive growth. In the UK, for example, major cycling media platforms—Cyclingnews and Cycling Weekly—drove nearly £12 million in retailer sales across more than 310,000 transactions in 2023, representing a 7 percent year-on-year increase. November of that year alone saw double-digit e-commerce growth, delivering £1.5 million in sales via affiliate links.
Such affiliate-driven sales models illustrate how online content and shopping experiences converge: riders read reviews or gear guides and can instantly click through to purchase. The most clicked brands in those periods included Giro, Castelli, and Rapha.
High Volume, Lower Average Order
Interestingly, while transaction volume surged (43 percent rise in the UK), average order values dropped 17 percent there. This suggests a democratization of cycling purchases—buyers may be opting for smaller or more affordable items, perhaps influenced by economic pressures. In contrast, in the US market, transaction volume remained relatively flat, but average order values increased by 15 percent.
Why This Is a Peak Moment
Several factors align to make now a peak in cycling e-commerce transactions:
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Post-pandemic demand continuation: While the immediate rush of pandemic bike-buying has eased, many consumers remain committed to cycling both for leisure and transport.
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Affiliate and content strategies: Media outlets monetize trusted content effectively, bridging browsing and buying.
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Market competition and discounting: Oversupply has led to steep discounts—some reaching up to 50 percent off recommended retail prices (RRPs). While this drives consumer purchases, it poses existential risks for local bike shops.
Challenges Undermining the Momentum
Despite strong e-commerce metrics, the wider industry faces headwinds:
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Oversupply and price pressure: Post-pandemic overproduction led to inventory glut. European bike and e-bike sales dropped 8.9 percent in 2023, with production and exports down nearly 20 percent. Heavy discounting is one result of trying to clear stock.
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Erosion of RRPs: As highlighted, the devaluation of RRPs has turned them into aspirational rather than actual price points. Independent bike shops, with thin margins, struggle to compete and stay solvent.
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Tariff pressures: In markets like the US, new tariff surcharges push prices up on many models—costs ultimately passed to consumers or absorbed by retailers with shrinking margins.
Peak Sales Amid Turbulence
Despite the challenges, e-commerce in cycling has achieved high transactional peaks. In 2023 alone, the combined efforts of affiliate-led sales platforms brought in almost £12 million for retailers with a massive volume of transactions. This illustrates that, in terms of sheer number of transactions processed, we are at a high-water mark, especially considering the breadth of products ranging from components to full bikes.
What This Means for Shoppers and the Industry
Online shoppers benefit from unprecedented selection, convenience, and deals. However, they must weigh short-term savings against the long-term value of supporting local service and expertise.
For the cycling industry, sustaining growth requires balancing:
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Effective inventory management to avoid oversupply cycles.
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New pricing strategies that preserve value without alienating consumers or bankrupting retailers.
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Diversification into e-bike offerings and premium niche products, where margins may be healthier.
Looking Forward
The current peak in transaction volumes may be followed by a recalibration. Experts suggest 2024 might be another “lost year” for cycling sales, with overstock pushing margins down and slowing recovery. Yet, some markets (e.g., the Netherlands) already show signs of rebound, and recovery is anticipated toward the end of 2024.
Industry players will need to innovate in digital engagement, streamline supply chains, and champion community-based retail to emerge stronger in the next phase.