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Amazon dominates online elements sales, but dealers still have advantages

amazon auto partsThis 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.

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Amazon dominates online elements sales, however dealers still have advantages

amazon auto partsThey have most auto elements brands obtainable together with Moog, Bosch, Denso, Magna, Valeo, NGK, Beck Arnley and much more. Rock Auto appears to focus on quality automobile components and that is why lots of the parts on their inventory are from manufacturers who provide elements to automotive producers. Prices are very aggressive and a number of the larger auto components retailers such as Wholesale Direct Auto list their stock on eBay. You will also discover used components at a fraction of the supplier costs.

Amazon seems intent to compete with the standard auto components retail chains on comfort and lower prices. For instance, one RedTop Optima automotive battery that sells for $216 at AutoZone is listed at $166 on Amazon. Additionally, Amazon offers similar-day delivery on auto elements in 40 US cities, funding financial institution Jefferies said in a report released final September. This could take away the necessity to ship bulky steel components via traditional bundle delivery. This will put Amazon in direct competition with aftermarket auto elements retail chains like Autozone, Advance Auto Parts, and O’Reilly Auto Parts.

Can Amazon afford to get into the ad enterprise?

Disobeying Amazon’s guidelines can get a Marketplace account penalized or disabled. E-commerce is comprising a larger share of that. E-commerce auto elements sales in the US grew 16% final year to achieve $7.4 billion, with Amazon and eBay holding the top two spots when it comes to on-line auto parts sales, based on market research agency Hedges & Company. Amazon … Read More