Amazon dominates online elements sales, but dealers still have advantages
This is useful for SEMA, AASA, or Auto Care Association members, in addition to for private buyers following AMZN stock on the NASDAQ change. Learn about Amazon’s online sales volume for auto components and equipment. Amazon reached $5.5 billion in components & accessory gross sales, and over $1.4 billion in OEM replacement components gross sales in 2018, for complete of $6.9 billion.
Although the dealership sells components by itself website, it has had an Amazon presence since 2016 in an effort to stay competitive, Rankin says. Earnhardt Toyota sells greater than $1 million in elements each month. Most of that’s wholesale, and about 5 to 10 p.c of it is e-commerce, Rankin provides. Jay Rankin, elements manager at Earnhardt Toyota in Mesa, Ariz., readily enumerates the costs of his dealership’s participation in Amazon Marketplace.
Analysts say carrying tons of of thousands of different components is unwell-suited to an organization with out deep experience in the subject. Amazon might need trouble stocking and selling bulky bodily elements and batteries — new engines, brakes, and exhausts — which are specific to a automobile’s make and mannequin. On the other hand, promoting automobile elements and batteries make up sixty five% of Advance’s total gross sales. Adding to its advantage, Advance has close relationships with auto components suppliers. Many manufacturers are wary of selling by way of Amazon as a result of they worry that it would help the corporate study the enterprise and one day take it over.
Here yow will discover almost any used automotive half. Rock Auto is an unbiased web site that carries hundreds of auto elements. They ship fast and often, you get the parts in three to four days. All the components of their inventory are new.
The company makes around 58% of its gross sales to technicians at garages, service stations and auto sellers, who typically do not know what elements they’ll want till the day begins. Rapid delivery is important. One of them is Advance Auto Parts.
Advance Auto Parts (New Car Parts)
Learn about Amazon’s auto parts market share. We have gross sales statistics on Amazon auto components, which have important annual gross sales progress. Amazon is now the most important on-line retailer of auto components on the earth. Learn about Amazon’s 2019 gross sales information together with growth trends for the long run, for 2020 and past.
Auto Parts: Online Sales to Break $6 Billion in 2015
The market generated more than $68 billion in revenue in 2015, according to Grand View Research. And The Financial Times reported final year that, whereas US auto sales grew only one% per 12 months over the earlier decade, sales at the main aftermarket auto elements chains grew 7% per year. This is essentially because of an getting older car fleet in the US, which has drummed up enterprise for aftermarket elements sellers. In a September report, funding bank Jefferies mentioned Amazon is offering similar-day delivery for auto components in forty major US cities — at prices that average 23 p.c lower than those of O’Reilly, Advance and AutoZone. Amazon, which rang up income of $128 billion within the 12 months ended Sept. 30, might see its auto elements business expand more than 50 percent this yr, to $5 billion, based on one Wall Street analyst’s current, confidential prediction circulated amongst purchasers.
Advance may seem like an unlikely firm to thrive in the digital period, however the outdated-college automobile store has taken steps to organize for Amazon’s encroachment. “We’re happy with the client response to our Ship-To-Store providing,” Amazon’s director of automotive Adam Goetsch advised CNN Business. Cars at present are built to final a long time, but meaning extra maintenance and care.