From the magazine: The future of automotive e-tailing – Auto Service World | CarTailz

E-commerce has grown in popularity enormously in recent years. The explosion of the Internet and the availability of products at cheap or discounted prices have attracted online shoppers.

Additionally, many companies operating with traditional supply chains as well as new players have entered the e-tailing landscape by selling their products either through portals or through their e-tailing websites.

Few portals also offer door-to-door delivery, free technical advice and installation support to reach customers all over the world and offer them support with technical expertise and products/services.

One only has to look at the popularity of Rock Auto, Amazon and eBay to see how this is affecting the automotive aftermarket. This is an industry currently at a major inflection point in its transformation to e-commerce.

More and more transactions related to cars and car parts such as engine components, electrical and electronic products, infotainment multimedia, pistons, rings, bearings, valves and filters, tyres, wheels and interiors are conducted over the Internet and include both business-to-business and and business-to-consumer sales.

If you are unfamiliar with automotive e-tailing, it offers a convenient way for consumers or businesses to purchase a wide range of vehicles and components online instead of traditional brick-and-mortar stores.

This area will grow strongly in the future, even if it is a niche market. Some of the main reasons for this are the increasing number of vehicle production, cheaper prices of automotive components, easy availability of electronic parts and increasing demand for electric and hybrid vehicles in the world.

However, the increasing trend towards do-it-yourself (DIY) in e-tailing is another factor driving the growth of the market. In addition, the rise in consumer disposable income, the spread of internet and smartphones, government initiatives to promote electric vehicles, and the emergence of new players are all supporting the growth of the automotive e-tailing market.

A recent report by Allied Market Research indicates that the global automotive e-tailing market is poised for significant growth.

And much of that growth is expected to happen right here in North America (Asia Pacific is the other booming region). North America holds a significant share of this market due to high Internet penetration rates among consumers and retailers worldwide.

In particular, Canadians are increasingly turning to online shopping, which includes buying vehicle parts. The automotive e-tailing market here is expected to grow drastically in the coming years as the sales of auto parts and accessories increase.

According to a recent report from the Automotive Industries Association of Canada, young people appear to be ahead of the curve. Understanding Millennials: A Brief Profile of Young Canadian Vehicle Owners 2021-2022. It found that nearly one in five (19%) millennials — aged 25 to 44 — have purchased a vehicle part or fluid online. That compares to just 13 percent of all other Canadians over the age of 18. Online research is mostly done by Millennials, even when shopping in-store — 26 percent versus 19 percent.

The aftermarket industry in Canada is heavily dependent on automakers. There is a great demand for cars nationwide. The sale of new cars, however, has problems. DesRosiers Automotive Consultants called the market “depressingly weak” in July as sales fell 16.2 percent from the same period last year.

A quick look at the Asia-Pacific region reveals that the reason for its global importance for automotive e-tailing is due to increasing internet penetration, increased urbanization and growing consumer awareness of vehicle maintenance. In addition, growing e-commerce sales in countries like China, India and Japan are likely to boost demand for automotive e-tailing platforms in the region.

Players in the Automotive E-Tailing market are focused on utilizing opportunities and strategies such as new product launches and partnerships to expand their portfolios and offerings to customers, increase market share and differentiate themselves from their competitors.

In May 2022, Carousel Motor Group (CMG), part of the Pohlad Companies, launched an e-commerce platform called Carousel Online. Carousel built the platform in partnership with Cox Automotive, Inc., a leading automotive services company, to simplify the online buying and selling experience for customers. The shopping process is completely digital. The platform offers 360-degree virtual tours, complete vehicle information and trusted trade-in reviews, among other things.

In November 2021, Advance Auto Parts, a US-based auto parts retailer, launched a new retail concept called Carquest by Advance Store. The store caters to the automotive DIY channel and meets the needs of independent owners who receive operational and merchandising support from Advance DIY. Carquest offers DIY automotive parts and products, interior and exterior signage, among other things. Carquest by Advance also offers free roadside services such as: B. Battery testing and installation, wiper blade installation and more.

In December 2021, Hero Electric, India’s leading electric scooter company, partnered with carandbike.com to sell its range of electric two-wheelers online. The website allows Hero Electric customers to book the vehicles and take the test drive and have the scooter delivered through a nearby Hero Electric dealer.

In July 2020, Piaggio Vehicles Pvt. Ltd., a leading cargo and diesel passenger 3-wheel company in India, has launched a new e-commerce platform called Ape Auto Mall for its commercial vehicles. The platform features the company’s Ape range, both cargo and passenger transporters. Around the same time, Piaggio India launched two e-commerce platforms to sell the Vespa and Aprilia branded scooters online. On the platforms, customers can select and book their desired scooter by model, variant and color option, complete the purchase process digitally and have the vehicle delivered to their home. The site also allows buyers to get information on showroom and on-the-street pricing, and helps them calculate EMI and apply for credit before booking the vehicle.

The landscape changes. Traditional automotive aftermarket players need to find ways to adapt. The right strategy depends on your type of business – but moving forward is a must.


Sharmistha Bose is a content writer specialist at Allied Market Research. She can be reached at sharmistha.bose@alliedanalytics.com.

This article originally appeared in the September/October issue of Jobber News

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