The consumers of today expect to research and buy just about anything online on their devices. The continuous rise in online shopping has not spared the auto parts business. Online car parts sales are on the increase as more buyers abandon brick and mortar stores for the convenience of online shopping. With the entry of e-commerce giant Amazon, the sky is the limit.
Online shoppers are not the only beneficiaries of the online trend. Auto part sellers like you are ripping big profits by expanding into the online space. The industry made over 7.8B in 2016 in online sales. If you are yet to venture into the online space, you are already losing out. Here are seven reasons why you should open an e-commerce automotive parts business in 2017.
- The online automotive parts market is expected to double
After making $7,6B in 2016, OEM Interactive predicts that the industry’s online sales in 2017 will hit $9 billion and analysts at Frost & Sullivan project that the sales will double between 2016 and 2020.
According to measurements by the US Bureau of Economic Analysis, Personal consumption of tires and automotive parts has enjoyed a healthy growth since 2015. Personal consumption includes purchases of tires and automotive parts in all the channels. In the close of December 2016, the sales had almost registered a 2.5% increase from December in the previous year.
- Get an additional revenue channel
If your automotive parts department is doing well, now is not the time to get complacent. Although opportunities to expand your offline business may not be available, opportunities for expansion are limitless in the online retail space. Create an e-commerce platform for your dealership to supplement your on-site sales. This will create an entirely new stream of revenue for your parts department, all the while, allowing you to generate sales even while you’re asleep! It will help you attain your profit growth targets, goals and objectives.
- Consumers are keeping their cars longer
After the financial crisis of 2008, consumers have been staying with their cars for longer periods of time. On average, the vehicle age in the US is 11 years. If consumers are keeping their cars for longer periods, it can only mean one thing: the demand for car parts has increased since older vehicles will require regular service and parts replacement.
- The E-commerce industry has grown tremendously
Forget about vehicle auto parts for a moment. E-commerce, in general, has registered tremendous growth over the last several years. This growth can largely be attributed to the giants in the industry like Amazon and Alibaba. Indeed, E-commerce is the future of retail. Most of the growth in the retail sector has been taking place in the online space.
According to Business Insider’s premium research service, BI Intelligence, the amount of money consumers will spend on online purchases will increase to $632 billion in the year 2020 from just $632 billion in 2016.
- Your competitors are selling online
The expansion into the online space is not just a phase; it is here to stay. Most of your competitors are seizing the opportunity and have started selling their automotive parts online. They have already established their online brands and are significantly expanding their market base. You should claim your own space by launching a web store for your dealership if you don’t intend to play catch up.
- Expand your market base
The ultimate goal of any business is to make profit. To make higher profits for your dealership, you will need to sell more parts, which means you will have to acquire new customers. Most consumers today prefer to do their shopping online. You can access this untapped market by creating an online platform for marketing your automotive parts today.
- Multichannel and Omnichannel online retailing
The omnichannel wave has taken over the retail space. Omnichannel retailing is what some people call multichannel. Consumers want to enjoy the shopping experience across different channels. They want to research about a product online and then buy it in a brick and mortar stores. The reverse is also true.
When the consumer does their research in a store and buys the auto parts online, you call that “showrooming.” When the reverse happens, you call it “webrooming” To keep up with this consumer’s shopping trend, your online business needs to be in synch with your brick and mortar business. But you need to have an online business in the first place.
The retail space is continuously evolving. E-commerce retail has already positioned itself as the future of the retail business. Most companies have recognized this trend and are now creating online stores alongside their brick and mortar businesses. Don’t be left behind. With the right help, setting up a web store for your dealership is easy. Increase your sales significantly by creating a trusted online brand and expanding your market base.