Autonomous vehicles are designed to greatly reduce the risk of collision, which is great news for drivers. But for dealerships, this is a solution that also poses a problem. Over 50% of a dealer’s gross profit comes from collision repair. Collision repair is a lucrative high-margin business that helps keep dealerships afloat. Original equipment manufacturers rely on a steady stream of collision repair revenue. But experts predict that the $5.6 billion collision industry of 2015 will drop to $2.7 billion by 2030, and $1.4 billion by 2040. Fixed Ops managers should expect to see lower collision parts revenue. So how can dealerships mitigate that loss to sustain their business? The answer is to focus on online sales channels like having your own eCommerce auto parts store—opening new revenue opportunities. While cars may not always need a driver, they will certainly always need parts. Let’s look at how your parts department can still make money with the rise of autonomous vehicles.
Be sure to stock parts that could malfunction regardless of collision damage. Wiper blades, tires, speakers, floor mats, batteries, fans, belts, and more will be necessary repairs even when all vehicles are automated. Offer these parts online with incentives to buy, to compete with other dealers. All cars will need certain parts replaced, even without collisions. Keep a steady stream of inventory online with appealing delivery options. Free delivery or free ship-to-store both offer advantages to dealers and customers. When buyers save on delivery, they are more likely to purchase from you. And when they pick-up in store, you can market directly and up-sell on the purchase.
MOVE AUTO PARTS MARKETING ONLINE
With less collisions, and the respective profits dealerships will lose in repairs, it’s imperative to find new sources of revenue. In the current market, there is an opportunity to not only replace this revenue, but to actually exceed it. Selling auto parts online is a burgeoning business with tremendous growth potential. Customers increasingly buy online, particularly for things like auto parts which warrant research and comparison. In fact, roughly 9 out of 10 shoppers now conduct online research before making an auto parts purchase. Making your products accessible right where people research them will greatly increase your sales. When they are debating a part to buy, you want to make that decision as easy as possible. Online vehicle parts and accessories sales are already a $12 billion business, and Amazon is expected to sell $8 billion in parts this year. Selling online means you can sell worldwide and reach a much broader audience. Autonomous vehicles are still a debated topic, and not all markets will adopt them as quickly. When you sell online, you reach buyers in areas where AVs may not be as prominent. Boosting your online customer base is key to generating more sales, and can more than make up for a loss of collision repair revenue. Some parts manufacturers offer substantial OEM kickbacks and incentives for hitting certain sales numbers that can only be achieved through digital sales. It’s a volume game when selling online. While your margins may be lower, you’ll make up for it with sales volume and gross profit that you could never accrue in-store. With an effective online auto parts marketing strategy—you can be selling hundreds of thousands of dollars worth of parts and accessories every month.SELL PARTS THAT DON’T REQUIRE A COLLISION
Autonomous vehicles will take over the highways sooner than people realize. Additionally, all new cars, autonomous or not, are now equipped with more safety features, such as park-assist and lane-departure warning, which reduce the number of accidents. This may mean fewer collision repairs, but it also means more parts to fix. Automated vehicles may be on the rise, but in the grand scheme of the automobile industry, these vehicles are still in their infancy. While manufacturers work out the kinks, your dealership can profit from their trial and error. Each new model will come with new problems, so position yourself to provide those solutions online.![Auto Parts Marketing Agency, sell more auto parts online](https://www.oeminteractive.com/wp-content/uploads/2019/07/Auto-Parts-Marketing.png)