The paddlesports industry is changing and so should we!
On the road from Utah to Oregon, the wind had me hiding out at a rest area and I decided to take on the hot and scary issue of Direct-to-Consumer-Sales (D2C) within the paddlesports industry on the Happy Paddlin’ Podcast. Listen Here:
This is such an emotional issue for many. Almost to the point that no one in the industry wants to take it on! D2C has been life-saving for vendors during tough times, a top of the list issue for retailer’s and rep’s long-term health and an area of confusion and mixed loyalty for the paddling enthusiast.
I personally feel that in 2-5 years everyone will say, “we were doing it wrong” (the same conclusion made by Nike and many others already). If we wait too long to figure this out it may be too late! In the case of Nike, it is called the “Billion Dollar Mistake”!
I’m feeling very optimistic because almost every vendor I talk to and work with is really trying to figure out a solution that is a win-win for all. At the Paddlesports Trade Coalition meeting last August all who attended really were rooting for each other’s health and certainly anything they could all do to increase participation in a sport we love. This is the nucleus of a solution in my belief and I think our small cottage industry might even someday be an example to other industries about how to work closely together. 
The goal for any healthy outdoor activity and industry is to have vibrant community participation that supports progression, new adventures, new participation and innovation. Specialty retailers, (along with clubs and social groups) are key to creating these vibrant communities and new participation and their outreach has only become more costly. Many I speak to have had to give up costly demo days, trips and services that make new paddlers because they don’t have the retail sales to help support these increased costs (insurance, added staff, access fees). The manufacturer is under increasing pressure from higher import and labor costs, 3rd party imposter sales and post-pandemic right sizing. The allure for a vendor to have a direct relationship with the paddler is completely sensible yet they know that it is the ambassadors on the ground that are leading new participants on new adventures that generate sales. How can we shift our D2C model so that all of us our working together?
I’m not foolish enough to say or ask for D2C to go away. But, I think there are reasonable solutions to put us all back in partnership together. And, there are so many more ideas that could be implemented and I hope that the brilliant industry leaders can put some energy into more ideas!
Suggestions for creating a shared partnership with D2C/Retailer/Rep partnership:
- Share the Data – Vendors can share the details of their wins with the retail partners. More than just “best sellers” but actual quantity data. Let’s not be scared to share this data specifically–if a manufacturer has a win then they should be proud to share actual numbers to help their partner retailers be better assorted in the future.
- D2C Freight Charges – This just makes sense to offset the high cost of individual item shipping costs and to offset the vendor’s cost of acquiring these sales and staffing added to work directly with consumer costs. It gives your partner retailer an advantage for carrying stock in their stores and the end-user some motivation to shop local and get advice for the best choice for their application. The higher margin of manufacturing – direct sale should not be considered an opportunity to give free freight. Watch this summary of the case study of Nike that prove the cost of direct sales is much higher than thought.
- Embargo new products from D2C for a reasonable time period. This will give the retail store more confidence to bring in and promote the newest products. They’ll be more likely to refer customers to the vendor’s website educational materials and promotional content. The retailer will also be more likely to create their own content and reviews of these new products knowing that they have some runway to land sales.
- Use Locally and other 3rd party applications for retailers to share their inventory to the vendor and for vendors to link paddlers back to their local store. There is an expense for both the vendor and the retailer so this isn’t always reasonable or feasible but technology is quickly offering more solutions. Look to Trek, Santa Cruz bikes, etc for the option of buying on vendor site and then shipping to a local specialty store for proper guidance, instruction and community invitation. This is fast moving and I’m not sure that just one software solution/company (like locally) is the key. We can do even better here with the talented folks that make up the paddlesports industry.
- D2C kickback/Dip-of-the-beak. D2C sales “kickback” can be used to entice specialty retailers to step up their partnership with their vendors through co-op marketing and maybe even purchase credits. In the podcast, I describe a strategy related to me by a dealer or The Green Egg Smokers. Essentially, the vendor-retailer-rep come together to find a stocking assortment at store level that gives a great local presentation and if sales go consumer-direct there is a quarterly marketing kick back to help this dealer further improve their in-store success. High tide raises all boats!
There have been many great articles on this subject by people that even have Linked-In accounts so don’t just take my word. Learn about the rising costs of D2C, the pitfalls that big companies have had and ask if paddlesports can do D2C better than bigger and more well-funded industries.
If you have watched Shark Tank, you’ll think that D2C is the Holy Grail of business strategy. This doesn’t factor in that for paddling to be a safe and positive experience, you do need guidance. Sure I can go buy a welder online but there is no way that I’m going to fire that up and see if things work out! I would have to pursue guidance and instruction and make sure I baby step my way into success. For paddling, the specialty retailers/outfitters are the experts that develop these baby steps for their local waters and paddling community. They use their retail sales to fund these activities and programs. If they go away long term, that will be the end. Perhaps an exclusive sport is what some want?
Update 5/6/25
I’m so happy that I’ve heard back from vendors, retailers and paddlers about this subject. And, I want to admit 100% that there is no way I could possibly see all perspectives in perfect balance! It’s easy to point at the Vendor/Manufacturer since they are the newest addition to the retail interaction with their D2C but it’s important to explore all the reasons they may feel it is necessary to do this. I think I shared some of them in the podcast but definitely not all of their reasoning and definitely think it would only be fair to share the “best practices” that a vendor might ask from their retail outlets. Until specialty retailers can show that they are also willing to lean into these brand supporting gestures, I don’t think it is reasonable to ask for all of the above. The “Come Together” title was chosen for a reason. Here is the start of the list of how a retailer can “Come Together” with their vendor to best represent product lines:
- Share vendor created content on product pages, email/socials and with staff. Retailer staff has to watch and comprehend these educational materials. Sales staff can not be less educated than the enthusiastic paddler who likely is hungry and willing to consume the vendor’s content. Retailers must make sure to share and familiarize themselves with this content too! Actionable Ideas: Print QRs with vendor generated content and make additional hang tags near these items in your store. Share this content both on product pages and on social blasts. Quiz staff and hold them responsible for knowledgeInvite your reps for in-store PKs and more than once-a-year training sessions. I’d love to do these virtually one-on-one since the only cost is time vs fuel. Even a 10 minute call with a staff member can go a long way.
- Retailers partner with vendors to help move through overstock. Communicate with vendors when they send these lists out even if you can’t take it all or any. Perhaps this conversation helps find a mutually agreeable sale that keeps these items off D2C promotions. We all want the newest stuff but the reality is that the vendor can’t be the only one holding the bag during product transitions.
- Get your vendor’s products accurately online and on your webstore. These days, most dealer’s online stores are getting easier and easier to add products and content. Could more staff members be contributors to these efforts to sharpen your online presence?
- Create your Own content, story and experiences with your vendor’s products and add this to the conversation! You know your market and you know how a given product’s features might particularly benefit your paddlers and the type of waters they frequent. Editorialize and tell that story!
Update 5/18/25
In the podcast, I reference a younger rep who I was very impressed by and used the idea that he may not make as healthy of a living if his commissions are lost to direct sales. I believe and know this to be true. However, I owe a bit more detail to the story — he worked hard with his retailer in Utah to try to correct the D2C frustrations of his dealer and continues to do so. Apologies if I didn’t make this clear. He was on his retailers side. He is also very involved in trying to be helpful in the Paddlesports Trade Coalition and believes this could be a possible way to bring the industry together. His brand is a a D2C marketer and perhaps from the inside he will help find a win-win for all!
Lastly, there is a new narrative that some vendors are adding to the conversation:
“The blended margin of our D2C channel helps us do more for the dealer base like more buying incentives and better programs for dealers, local marketing, sponsorship and innovation“.
I find this a pretty bullet proof argument and have even used a version of it myself when selling off a demo fleet or sales samples. I don’t doubt the veracity of it for myself or the vendors that do use their higher D2C margins to fund the above dealer and brand benefits. However, if those higher margins are the goal then why not charge freight? Freight is a real cost for your direct business. If it benefits the amount of available funds for dealer programs, marketing, innovation, etc. then why not share the data (skus/location)…both to help your on the local ground team (rep and retailer) better assort and plan? Plus, if these juicy margins are creating this added benefit that raises all boats then I think quantifying and detailing the benefits of these earnings may help smooth things over a bit.
Do your sales help support and develop new enthusiastic, properly outfitted and safe paddlers? If not, maybe it is time to Come Together!
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