According to a new whitepaper from Valtech, a business transformation agency, e-commerce is the automotive aftermarket’s fastest growing channel and growth driver.
Online sales of auto parts and accessories in the U.S. (excluding online auctions and used parts) totaled $16 billion in 2020, up 40 percent from e-commerce sales of $7.4 billion in 2019, the report said. Due to COVID-19 and supply chain disruptions, more buyers (both business-to-business and business-to-consumer) shifted from in-person to online.
“In a saturated market, your level of digital maturity and ability to offer digitally-enabled customer experiences are the biggest differentiators that can lead to improved profitability and revenue growth,” the Valtech whitepaper said.
“Whether you sell easy-to-install WeatherTech floor mats or Borla custom exhaust systems, a lot is on the line.”
Mobile traffic
The whitepaper noted that specifically mobile sales of online aftermarket auto parts grew by 10 percent year over year in 2020, accounting for nearly one-half of all e-commerce sales.
“It’s common for auto parts and accessory websites to have more than 65 percent of total traffic on mobile devices—that’s one of the trends in online shopping that will continue,” the whitepaper said.
It’s crucial to have a strong search function and an easy “buy now” option for consumers on the mobile experience.
How to compete with Amazon
Amazon accounts for over 50 percent of all automotive parts sales. In 2020, Amazon’s sales of auto parts accessories and car care products totaled $10.3 billion. It can feel overwhelming to go up against a giant like Amazon or eBay Motors, the whitepaper noted, but there are ways to stand out:
- Be a resource for instructional content.
- Be human in your marketing outreach.
- Make your replacement parts and bundles easy to find and buy.
- Focus on convenience, such as redoing your onsite UX, partnering with a chain or garages to offer onsite pickup, creating pickup lockers for contactless transactions and more.
Growth numbers
According to data from the Automotive Aftermarket Suppliers Association and the Auto Care Association, the automotive parts aftermarket in the United States will have grown an estimated 11 percent in 2021 to top $292 billion in sales.
The entire automotive aftermarket, which includes both automotive/light truck and medium/heavy duty vehicles, is expected to grow from about $380 billion in 2021 to $449 billion as soon as 2023, representing an 18.16 percent increase, the Valtech whitepaper found.
Why the automotive aftermarket is growing
There are lots of factors at play, the Valtech whitepaper found:
- Global demand continues to rise for personal vehicles, particularly used ones.
- In times of financial downturn, consumers hold onto used cars for longer, creating a surge in demand for aftermarket auto parts and vehicle maintenance.
- During the COVID-19-induced shutdowns, U.S. consumers spent less on travel and more on home improvement and car repairs.
- As parts become more sophisticated (think chipenabled), more expensive full component sets are the norm (as opposed to less pricey individual replacement parts).
Download the report here.
