Automotive Aftermarket in Fast Lane with e-Commerce

Automotive Aftermarket in Fast Lane with e-Commerce

Selling mechanical parts online has never been easy but it is becoming increasingly inevitable to have online presence for Automotive Aftermarket players such as Parts Sellers, Retailers and etailers. With changing consumer behavior and the emergence of Do-it-yourself (DIY) economy, automotive aftermarket players are actively positioning their business towards e-commerce.

A vast majority of the aftermarket business is focused on replacement parts, which allows vehicle owners to maintain their vehicles longer with greater efficiency. This phenomenon holds true in case of sluggish economic growth where vehicle owners prefer to repair their old car instead of buying a new one. This premise has created a lucrative opportunity for Aftermarket players to build a more robust e-commerce strategy.

Compared to other automotive consumer products, the penetration of e-commerce for parts is less.

Undoubtedly, the aftermarket is evolving at a fast pace and has realized the benefits of fast-growing ecommerce channel. As Technavio depicts, “Global e-commerce sales for the automotive aftermarket are projected to grow at a compound annual rate of 18.9% from 2017 to 2022, reaching $49.5 billion in 2022”.

With the rise of convenience economy coupled with fast internet connectivity and smartphone penetration, Automotive customers prefer shopping for vehicle parts online. No surprise that this ecommerce drive for selling auto parts is led by giants such as Amazon and eBay by building and deploying intuitive, technologically robust and scalable shops. Amazon, over the years, has been able to deliver value for consumers by deploying concepts such as “same-day delivery” in major cities allowing them to capture a large market share from automotive parts sellers and other outlets that cater to price-sensitive do-it-yourself (DIY) vehicle owners, including gas stations, mass merchants, and local hardware stores.

To compete with the bigwigs, traditional retail chains and distributors are actively extending their cataloguing features and capabilities to attract vehicle owners. These retailers also have to compete against the learner, fitter pure-play e-tailers with streamline supply chains and price discounts at their disposal. However, in order to counter the threat of e-tailers, traditional retailers can rely on their brick-and-mortar presence to fulfil ‘Last Mile Delivery’, considered as the holy grail in distribution channel.

Additionally, these retailers have realized that they need to deploy a comprehensive e-commerce strategy in which online convenience enhances the in-store customer experience and leverages the distribution network and in-store employee expertise. However, the most critical element in achieving success and bringing more vehicle owners to your web shop is your ability to achieve parts accuracy. In a hyperactive competitive environment where incentive for users to switch to competitors’ web shop is enormous and churn rate is piling up, it is imperative that these retailers are able to enhance search criteria to display the most accurate and relevant spare parts to vehicle owners.

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Typically, demand for complex mechanical parts or components such as powertrains or disc brakes etc. is lower compared to easy to deploy parts and vehicle accessories. On top of that, users do not have adequate technical knowledge to determine the right part for their vehicle. Additionally, the weight of many mechanical parts can increase the shipping costs.

Owing to these challenges and opportunities, e-commerce is the future for the automotive aftermarket, which is estimated to contribute 10–15% of the overall aftermarket revenue in North American and Europe by 2020.

AutoDAP, a Smart Data solution platform is poised to help the automotive aftermarket transition in their digital transformation journey. With decades of Automotive experience and unique understanding of the European automotive market, we help businesses transform faster by minimizing risks and improving profitability. Parts Sellers, Concept Workshops, Dismantlers, Insurers and Used Cars dealers can lookup car specs by VIN number and derive parts information accurately.

To learn more or for a quick product demonstration, you can contact us at info@autodap.parts or visit us at www.autodap.parts

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