Online Sales of Aftermarket Parts: Be Careful How You Interpret Things

Main Navigation

Advertisement
Social Connect
Resources
Our Brand Family
Counterman - Babcox Media
Counterman has been serving auto parts jobbers, retailers and distributors since 1983.
Opinion

Online Sales of Aftermarket Parts: Be Careful How You Interpret Things

Sure, the internet and technology are distractions (and in some cases interruptions), but the automotive aftermarket exists because it has always been nimble and solution-driven.

S. Scott Shriber
By S. Scott Shriber
Published:

Related Articles

In a recent report on aftermarket parts sales, Hedges & Co. predicts that online retail sales of auto parts and accessories in 2018 will exceed $10 billion for the first time, marking a 16.3-percent increase over 2017. More than $5 billion of that will take place on mobile phones.

Hedges & Co. also forecasts that online sales of auto parts will climb to nearly $16 billion in 2021.

The digital marketing agency predicts that online activity will have an influence on nearly $152 billion in parts and accessory sales through all retail channels – chain retail stores, automobile dealers, big-box retailers, independent brick-and-mortar retailers, jobbers and online sales – by 2021.

On the surface, these figures could be alarming. However, if you take a closer look, they’re probably in line with what you would expect.

The forecast doesn’t predict that all parts sales are going to the internet, and it doesn’t say that all brick-and-mortar locations are going to disappear. But it indicates that there’s a shift in buying habits, due to the availability and adoption of new technology.

While $10 billion sounds like a big number, it’s still a small percentage in terms of the overall aftermarket. The Auto Care Association’s Auto Care Factbook estimates DIFM parts sales at $109 billion and DIY parts sales at $57 billion.

Also, remember that the $10 billion number includes parts and accessories. For years, accessories have been sold through different channels, so this component really shouldn’t be surprising. However the order is created, it still will ship from a location – and today that distribution system is the aftermarket. Even one of the largest online parts sellers uses the traditional aftermarket to fulfill. It’s just hidden behind the curtain.

As far as influence, of course online is influencing the sales. The internet is a real thing and people are going to use it. Probably a bigger contributor is the population’s adoption of smart devices – this is what really gives them access to the information. The reality of this connection is it provides/requires pricing transparency. This will affect distribution channels, but in the end, orders will need an entity to fulfill them.

Along with all of this, let’s not lose sight of the fact that the sale of most parts today
requires knowledge of the operation and application of the parts. Yes, cataloging has come a long way. But it still doesn’t have artificial intelligence. Repair professionals, DIYers and the entire channel depend on the distribution system to provide this service.

Here’s my point: Sure, the internet and technology are distractions (and in some cases interruptions), but the automotive aftermarket exists because it has always been nimble and solution-driven. As long as there’s a need for a part to repair a vehicle – however the part is ordered – the distribution channel will be there to deliver that part.

You May Also Like

Auto Industry

Customer Service: How It’s Done

Customer service should be your number one priority, and it all starts with the greeting.

Eric Garbe
By Eric Garbe
Eric Garbe is a graduate of Columbus State Community College with a degree in Automotive Maintenance Technology. He has extensive independent and dealership field experience as a technician and shop owner and is an ASE Certified Master Technician and former Adjunct Automotive Professor. He has been professionally writing automotive technical articles and documents for many years and in his free time enjoys restoring old cars and creating custom interiors and upholstery.
Published:

This is always an important topic to discuss, because I consider excellent customer service one of the most important tools you can have to earn trust, respect and repeat business from the customers that come through your door. Whether that customer is do-it-yourselfer from across town or the professional repair shop across the street, your business depends on a solid relationship.It’s a subject that I am passionate about, and it’s one that many people are losing touch with. Whether you are communicating to someone in person, on the phone or using some type of social media, good customer service and bad can both exist. You can’t afford the latter, so this is the first in a series of topics which can and should be shared from the front of the shop to the back. No matter which role you hold, you represent the shop and yourself. Customer service should be your number one priority.First on the list is the greeting. From the second a customer walks in the door, they need to know you appreciate them coming in and how important they are to your business. First impressions are everything and here’s the correct way to do it each and every time: look them directly in the eye, smile and say hello!Of course, you can say “Good morning” or “Welcome to Joe’s Autocare,” but it should be a formal greeting and the most important thing is that you have smiled, looked them in the eye and recognized that they have walked through the door.You should always retain a formal greeting until you are on a first-name basis with a customer. Only once you have established that level of relationship is it OK to use the less formal greeting of “Hi,” followed by the person’s name.This greeting does more than just indicate respect and appreciation for someone walking through the door. Most likely there are customers both new and old who are in earshot of your conversation. For newer customers, this continues to build rapport and reinforce their positive view of your shop; they see that you demonstrate respect and treat everyone in the same manner. For repeat customers, even ones that have been coming for years, the greeting is important because the way you treat them is the reason they continue to come.And when a long-time customer comes in and you greet them with “Hi [First Name],” this indicates your appreciation for them and that you’re glad to see them as a person, more than just a customer. New customers that witness this will see that your repeat customers are comfortable enough to be on a first-name basis, another indication of the trust they have in you.

Read Full Article

More Opinion Posts
Are Sitting and Standing the New Smoking?

Prolonged standing can be tough on the body. Apparently, sitting is just as bad.

By Josh Cable
ADAS, Autonomous Vehicles and the Future of the Aftermarket

Looking forward to the next 22 years, it’s clear that the pace of change is only going to accelerate.

By Andrew Markel
Right to Repair: Are the Times a-Changin’?

Perhaps this is the window of opportunity for the aftermarket’s legislative agenda.

By Josh Cable
Angry Driving Or ‘COVID Driving’?

If we all don’t slow down, we’re all going to get somewhere fast all right — a grave.

By Jason Stahl

Other Posts

MEMA Launches At-Home REPAIR Campaign

The next step in the campaign to get the REPAIR Act passed is to get aftermarket suppliers involved.

By Emma Henderson
Shaw Assumes Leadership of MEMA Original Equipment Suppliers

Collin Shaw succeeds Julie Fream who served 10 years in the position.

By Emma Henderson
AACF Launches 65th Anniversary Fundraising Initiative

The campaign aims to raise $65,000 through 1,000 donations of $65 each.

By Counterman Staff
Schaeffler Publishes 2023 Sustainability Report 

Schaeffler was awarded an “A” score in the climate change category for 2023 by the global non-profit environmental organization CDP for corporate transparency and performance.

By Emma Henderson
Schaeffler Sustainability Report