In a bid to reverse slumping sales, Bugaboo is quietly planning to sell its strollers and accessories direct from its web site starting October 1.
According to person familiar with the company's plans, Bugaboo plans to offer free shipping and no sales tax if you live outside of New York or California (where the company has offices).
This news has angered quite a few Bugaboo retailers, who tell BABY BARGAINS they see it as a sign of desperation. Sales are down 35% to 40%, said one large retailer of his store's Bugaboo sales.
By offering free shipping, retailers fear they will be used a showroom for Bugaboo shoppers, who will then order online to skip the sales tax and shipping. (And of course, when you are talking a $900 to $1000 stroller, saving in sales tax comes close to $100 in some cities).
Of course, Bugaboo isn't the first stroller maker to sell direct online—Orbit, for example, sells its strollers from its own web site as well. But Orbit doesn't offer free shipping (charging $30-$40 for ground shipping on a travel system). And Orbit has many fewer retail dealers compared to Bugaboo, which perhaps better justifies selling online.
And its no surprise the plan to start selling online begins October 1—the same day Bugaboo plans to begin donating 1% of its proceeds to the RED charity.
Will this gamble work? Hard to say—clearly, online sales of strollers is a growing part of the market. But throwing your retail dealers under the bus when trying to sell a premium product doesn't sound like a winning strategy.
Meanwhile, we will have more news on Bugaboo, including word on a revamped model, coming shortly.