Navigating the Future of Automotive Aftermarket E-Retailing: Trends and Strategies - ecommotors

The automotive industry is entering a new era defined by shifting market dynamics, evolving consumer habits, and technological breakthroughs. Within this landscape, a significant disruption is underway in the aftermarket sector, where traditional models are giving way to the rise of e-retailing. This comprehensive exploration delves into the trends, challenges, and strategies shaping the path forward for this industry.

The Changing Landscape of Automotive Aftermarket

Mega-trends like digitalisation, connectivity, and electrification are revolutionising the Independent Aftermarket (IAM) e-retailing segment. These forces are reshaping consumer purchasing patterns and contributing to the burgeoning growth of online aftermarket retailing. From an aging vehicle population to the emergence of post-Covid norms, various factors are driving these transformative shifts.

The Crucial Trends in Online Aftermarket Retailing

E-retailing is no longer just a concept but a vital strategy embraced by industry stakeholders. Distributors and other ecosystem players are coming together through online-to-offline (O2O) integration, creating new dynamics. OEMs are venturing into aftermarket activities, engaging directly with customers. Advanced technologies such as Artificial Intelligence and Augmented Reality are elevating customer experiences, presenting innovations like in-car marketplaces.

Varied Business Models in Automotive E-Retailing

The realm of e-retailing encompasses diverse players categorised into five distinct types, ranging from online automotive retailers to digital OEM channels. These segments are strategically tailored to different customer bases, reflecting the multifaceted approaches employed to capture the e-retailing market’s growing potential.

Unveiling Market Potential and Novel Business Models

Forecasts indicate a substantial surge in e-retailing penetration by 2027. This trajectory stems from substantial investments by IAM and OEMs into online platforms, bolstered by digitalisation trends and enhanced delivery models. As new business models like private labelling, subscription-based services, and online-to-offline integration come to the fore, they redefine competition and enhance convenience for consumers.

Overcoming Challenges with Ingenious Practices

While the prospects of e-retailing are promising, hurdles still exist. Challenges such as intricate part replacements and cataloging inefficiencies are acknowledged. Additionally, addressing delivery times in comparison to traditional brick-and-mortar outlets remains a priority. Nonetheless, innovative strategies like optimised cataloguing, competitive pricing, and supply chain enhancements are being adopted to surmount these barriers.

OEM Strategies and Competitive Insights

OEMs are actively involved in this transformation. Industry leaders are at the forefront, leveraging strategies such as vertical integration, alternate OEM brands, and dealership safeguarding to navigate the evolving landscape effectively.

Paving the Way Forward

The journey ahead will focus on Business-to-Business (B2B) and Do-it-for-Me (DIFM) segments, prioritising competitive pricing, enriched customer experiences, streamlined logistics, and efficient supply chains. By embracing these ideals, businesses can shape the future of the aftermarket e-retailing sector, meeting evolving consumer expectations and revolutionising the way automotive products and services are accessed and acquired.

Ready to Navigate the Future of Automotive E-Retailing with Confidence?

As the automotive aftermarket landscape undergoes a profound transformation, staying ahead of the curve is vital. Embracing the rise of e-retailing opens doors to unprecedented opportunities and challenges. At ecommotors, we’re here to guide you through this dynamic journey, offering tailored solutions that align with the evolving trends and customer preferences. Contact us to learn more and embark on this transformative journey today.

To find out more about the automotive aftermarket, or for a no-obligation introductory discussion, please contact us.

automotive

Managing your Data, the right way

In our previous blog post, we talked about Channel Conflict and we mentioned something of great importance – data is worth its weight in gold. Data’s importance can easily be compared to gold as data isn’t that valuable in its raw state.

Aftermarket vehicle hybridization

After the shutdowns in the spring of 2020 and a slow restart in the third quarter, there was a boost at the end of the same year with increased demand and the need for inventory rebuilding. Since electrification is happening all over the globe and it’s growing at a rapid speed, new ideas, inventions, and also old “forgotten” ones are emerging and taking hold.

Meet us at the UK Garage & Bodyshop Event, NEC Birmingham, 8-9 June

We will be in Birmingham to meet all of you in person and talk about our favourite market – the automotive aftermarket – at the UK Garage & Bodyshop Event. The event is a focused UK event for garages and body shops providing training, tools and technology all in one place.

Energy insecurity is here and here to stay

With Russia providing 10-25% of the world’s oil, gas and coal exports, many countries, especially in Europe, are vulnerable. Gasoline prices in Los Angeles exceed $6 a gallon for the first time. Oil jumped to $122 a barrel last week after a storm damaged a pipeline from Central Asia to the Black Sea and Iran-backed Houthi rebels attacked Saudi energy facilities.

Guide to choosing the Right Software to Grow Ecommerce Sales part 1

Choosing the right technology that covers your specific business needs is often not a quick or easy task. While many favour one main sales channel, there is the argument for why most brands should prefer D2C and be diverse with their ecommerce presence.

Key countries and car manufacturers are absent in the global emissions agreement

The global agreement to eliminate emissions from all new cars by 2040 is struggling to win support from key countries and automakers.

D2C – the argument for why most brands should prefer it

A lot of brands today prefer D2C selling. It’s only one area of e-commerce business but it has changed a lot in recent years as cutting the intermediary out of the picture earns a higher margin and provides direct access to customers and data. Commerce has always been driven by shoppers and their preferences, so for them all the information is crucial.

Channel conflict when going D2C

In our previous blog post, we discussed D2C (‘Direct to Consumer’) and its potentially biggest benefits. In this one, we explore the channel conflict which can occur when switching to a different channel. We argue that it’s always an opportunity – if you’re prepared.

Eco Treats for the Aftermarket

In recent years, the public’s desire for long-term eco-policies, change of consciousness and increased desire for environmental protection has been growing. This is due to several factors such as more understanding of global warming and its consequences (in some cases the whole discovery of it), overproduction (leading to too much waste that can’t be stored) and the opposite – not enough production (with inflated prices and unclear or slow delivery time).

Energy insecurity is here and here to stay

AVOID DATA DECAY / BAD DATA

What is ‘Data decay’ (bad data)? This term refers to the degradation in the quality of data. The importance of collecting and managing your data is undoubted. But if you only store and don’t have a routine for updating and cleaning your data, then you’re not maximising your sales success. Like most things, data needs a regular clean and polish to keep it performing at its best.

How COP26 Decisions Affect the Automotive Sector

COP26 (Key countries and car manufacturers are absent in the global emissions agreement, where the behemoths of the global car industry – the US, China and Germany – all declined to sign) showed the world both sides of the same coin:

Online Sales – How To Start Selling? part 2

It’s not a lie to say that starting an online store can be confusing. This is the second part of our two-part guide to help you in your path of growing. You can check the first part here – Online Sales – How To Start Selling? part 1 . In this part, we’ll cover sales through social networks, provide answers to some questions and more.

Online Sales – How To Start Selling? part 1

Years ago, businesses wondered if it made sense to invest in online stores and if they would spend their time developing an ecommerce channel. Everyone was used to working in an offline environment through physical sites, and business growth opportunities included opening new sites or finding new partners (you can check our blog post “D2C – the argument for why most brands should prefer it”).

The story so far in the Automotive Aftermarket

The two capital auto parts markets are firstly the automotive components from the original equipment manufacturer (OEM) and secondly – the automotive aftermarket. And the auto aftermarket is big, layered, and resilient, capturing the attention of financial and strategic buyers.

What are the dis-advantages of automotive aftermarket ecommerce?

This post covers the disadvantages of automotive aftermarket ecommerce, and it’s a continuation of the content in which we discussed the benefits of it. Like everything in our lives, ecommerce has its disadvantages, which is what we want to share in order to be as objective as possible and prepare people for the difficulties they may face.

What did the experts not foresee and who benefitted?

The chips crisis Some of the smartest and most insightful people work in the automotive sector. They are used to planning things for years to come and using every detail or information they have to enable their companies to meet the standards of safety, fuel economy, and functionality that customers expect.

The hidden war on the automotive front

“Sustainable development” and “climate neutrality”; these phrases will determine the future of the automotive industry. But doesn’t the future deprive us of choice?

Are metals the new oil?

Carmakers plan to invest nearly US$515 billion in electric car production by the end of the decade. According to a study by the consulting company AlixPartners, by 2025 the investment in the production of electric cars will reach US$330 billion, and in 2020 automobile companies spent a total of nearly US$225 billion on capital expenditures and research. But is it worth it?

Тhe aftermath of Amazon Prime Day

In our previous Amazon Prime Day blog post we discussed the choice brands have to make on whether or not to invest in this event which is full of unknowns. Since a handful of large retailers were also offering rival sales events: Target’s Deal Days (June 20-22 in 2021, July 11-13 in 2022 ), Best Buy’s ...

The effect of the Lockdown on our cars and the Automotive Aftermarket Industry

While we are staying at home quarantining, our cars remain parked, which inevitably affects their performance. Traffic declined by 80 percent in most cities during the “Stay at home” regime and a typical car is only in use 1% of the time. This means that our cars are idle around 97% of the time during the pandemic and we all know long periods without operation are not good for the engine.

To omnichannel or multichannel? That is the question

Following our guide to How to start selling, in this blog post we define omnichannel and multichannel. These are two very typical marketing strategies that are focused on using multiple channels to reach potential or existing customers. The main difference between them is the customer experience.

The Automotive Aftermarket and the story so far prt2

Тhe world is slowly but steadily preparing for the phrase “step on the gas” to become meaningless. While the necessity for change is once again proving to be the mother of innovation (check our blog post “Aftermarket vehicle hybridization”) some unpredicted and some predicted challenges arise for many.

ecommerce customer service

Nowadays ecommerce businesses have the opportunity to function like normal stores, but with the additional reach and flexibility of online commerce. However, ecommerce businesses need to bring more to the table to meet modern high customer expectations. Which inevitably means more tailored and responsive customer service for supporting brand consistency and recognition.

How Competition in Automotive Sales is Increasing

The entry of technology giants like Apple, Samsung, and Sony with huge amounts of funds into the Automotive industry has brought unprecedented challenges. In the modern world of business, growth and ideas are of critical importance and a failure to grow can lead to more than just negative results. Even a long-time stock market fixture like General Motors is judged on its quarterly growth rates.

The advantages of automotive aftermarket ecommerce

People are more and more intrigued by investing in ecommerce. In the following lines, we’ll share information about the pros seen through the eyes of ecommerce businesses.

The Automotive Aftermarket in 2023 and Beyond: Key predictions

The automotive aftermarket industry is one of the most dynamic and rapidly growing industries in the world, with an estimated value of over $1 trillion globally. As technology advances and the demand for new and improved automotive products continues to increase, it is important to understand the trends and predictions for the industry in the coming years. Here we are going to share some of the key predictions for the automotive aftermarket industry in 2023:

Beating inflation – is the automotive aftermarket expected to grow?

According to the late-2021 sector appraisal study of the OSS (The Turkish Automotive Aftermarket Association) last year, compared to 2020, there was an average increase of 43.5% in sales. Although average sales are expected to grow by 23.5% this year, the percentage of those planning to invest over the same period has fallen to 38.2% on average.

Amazon Prime Day and Brand protection – what is the right approach?

Previous Prime Days allowed brands to use the event to test out strategies and restock for Q4 shopping holidays. But unfortunately, from last year no such luxury exists. As Amazon does not reveal the exact date of Prime Day until a few weeks prior, brands are now choosing whether or not to invest in Prime Day.

How the Pandemic Drives the ecommerce Boom

Online B2B ecommerce business will grow by more than 70%. The pandemic significantly accelerates the growth of B2C and B2B e-commerce, according to reports.

Mistakes brands make on ecommerce marketplaces

Marketplace platforms allow businesses to increase their revenue by acting as middlemen and pairing buyers with sellers. To get the most out of the marketplace opportunity, brands and retailers need a clearly defined customer proposition, practical strategy, and a tested formula for success.

eBay Parts & Accessories Mandates – the Inside Track

According to eBay, there are about 90 million live listings for parts and accessories (‘P&A’)at any time on the marketplace. Every day people buy these parts and accessories for their vehicles from eBay and it’s important for them to find the right part for their car.

What Are the Clouds that Make Up the Automotive Storm?

Oxford Languages’ dry definition of a storm reads “a bad situation caused by a combination of adverse factors”. Unfortunately for carmakers, something similar to storm has been happening to their business in recent months. The crisis threatens the entire financial year 2021 for many automotive giants, may continue in 2022, and forces them to make unprecedented changes in their business and future.

Automated customer service – The What, The Why and The How

In our previous blog post, we explained why customer relations are important in ecommerce and gave you examples of how to improve them. In this post we’re going to explain why it’s a good idea to involve automation in your customer service. Nowadays, a journey to buying starts at home, online. Right from the time customers land on your product, every initial interaction can mould their experience and end decision.

ecommotors Tech Platform receives two eBay awards

As in those challenging times, we need to accept the “new normal” and come with a different level of solutions and expectations. eBay recently demonstrated their innovative spirit at eBay Connect, an event that is made for developers to innovate, to discuss APIs and the future of the online marketplace, organised and conducted entirely online.

What is happening in the world of ecommerce?

We regularly hear or read how things are going more and more online, especially after the last couple of years ( you can check our blog post How the Pandemic Drives the ecommerce Boom ) and the metaverse, but are there any numbers to support the allegations?

The Rise of Subscription-Based Services in the Automotive Aftermarket

Subscription-based services are becoming increasingly popular in the automotive aftermarket industry, as businesses seek new ways to generate revenue and enhance the customer experience. Here’s a closer look at this growing trend: What are Subscription-Based Services in the Automotive Aftermarket?

What is happening in the world of ecommerce?

Meet us at the UK Garage & Bodyshop Event, NEC Birmingham, 8-9 June

Guide to choosing the Right Software to Grow Ecommerce Sales part 1

Energy insecurity is here and here to stay

Тhe aftermath of Amazon Prime Day

The Automotive Aftermarket in 2023 and Beyond: Key predictions

Amazon Prime Day and Brand protection – what is the right approach?

Online Sales – How To Start Selling? part 2

ecommerce customer service

To omnichannel or multichannel? That is the question

Are metals the new oil?

The Automotive Aftermarket and the story so far prt2

What did the experts not foresee and who benefitted?

What Are the Clouds that Make Up the Automotive Storm?

Key countries and car manufacturers are absent in the global emissions agreement

The global agreement to eliminate emissions from all new cars by 2040 is struggling to win support from key countries and automakers.

Automated customer service – The What, The Why and The How

D2C – the argument for why most brands should prefer it

The Rise of Subscription-Based Services in the Automotive Aftermarket

Online Sales – How To Start Selling? part 1

Aftermarket vehicle hybridization

Mistakes brands make on ecommerce marketplaces

The advantages of automotive aftermarket ecommerce

People are more and more intrigued by investing in ecommerce. In the following lines, we’ll share information about the pros seen through the eyes of ecommerce businesses.

Eco Treats for the Aftermarket

Beating inflation – is the automotive aftermarket expected to grow?

Managing your Data, the right way

What are the dis-advantages of automotive aftermarket ecommerce?

The story so far in the Automotive Aftermarket

Channel conflict when going D2C

How Competition in Automotive Sales is Increasing

ecommotors Tech Platform receives two eBay awards

How COP26 Decisions Affect the Automotive Sector

Energy insecurity is here and here to stay

The hidden war on the automotive front

“Sustainable development” and “climate neutrality”; these phrases will determine the future of the automotive industry. But doesn’t the future deprive us of choice?

eBay Parts & Accessories Mandates – the Inside Track

The effect of the Lockdown on our cars and the Automotive Aftermarket Industry

How the Pandemic Drives the ecommerce Boom

Online B2B ecommerce business will grow by more than 70%. The pandemic significantly accelerates the growth of B2C and B2B e-commerce, according to reports.

AVOID DATA DECAY / BAD DATA

eCommerce + motors = ecommotors – the aftermarket formula for success

In this post we talk through the aftermarket ecommerce success formula for vehicle accessories that inspired the founding of ecommotors.

A Brief History of Brexit – How is it working out? Part 1

The Brexit deal between the UK and the EU reached completion just a week before the end of 2020. Businesses and consumers didn’t have much time to prepare for the changes that took place on January 1, 2021.

Aftermarket ecommerce – Part 2

In this 2-post series, we look at how brands and manufacturers can succeed in vehicle parts aftermarket ecommerce.

ecommotors Tech Platform Helps Power eBay NHS PPE Portal

The marketplace news website Tamebay recently published an update to the project, stating that eBay had committed to extending their partnership with the NHS Supply Chain and Department of Health and Social Care to 31st March 2021, to see the country through potential additional waves of the coronavirus pandemic and the winter flu season.

ecommotors and the IAAF – embracing acceleration through the 4 E’s

A couple of months ago, shortly before we launched ecommotors, our parent company E-Motive joined the IAAF. The Independent Automotive Aftermarket Federation is just that, promoting and securing the future of the sector and its members, who comprise hundreds of manufacturers, suppliers, warehouse distributors, buying groups and independent garages.

How COVID-19 and Brexit are Affecting the Automotive Market

The automotive industry in the United Kingdom has suffered significant losses since the beginning of the pandemic. The COVID crisis has cost the car industry around £ 20 billion. Meanwhile, monthly sales in China exceeded those in 2019 and for 2021 they are expecting to rise another 4%.

E-Motive’s ecommotors PPE Portal work earns an IAAF Outstanding Innovation Award

Cheltenham, England, Wednesday 9th December – IAAF member E-Motive, whose ecommotors tech platform powers key parts of the eBay-NHS PPE portal, won the ‘Outstanding Innovation During the Covid-19 Crisis’ category at the recent IAAF Pride of the Aftermarket Awards 2020.

How to choose the Right Software to Grow your Ecommerce Sales part 2

In our previous blog post, we started the topic of software selection. We covered a few important points on why invest in software solution and how potentially you can fall behind the competition if you don’t.

Aftermarket ecommerce – Part 3

In this post series, we look what it takes for establishing a thriving online multichannel and multi-brand aftermarket business for motor parts.

ecommotors and Automechanika Birmingham – collaborating on aftermarket digitalisation

If you’re in the automotive aftermarket business then you’ve probably heard of Automechanika Birmingham. It’s the UK’s leading exhibition for the automotive aftermarket and supply chain sector, usually attracting over 12,000 visitors and over 500 exhibitors. Automechanika Birmingham’s ultimate parent is Messe Frankfurt Exhibition GmbH.

Brexit – Relief that “no deal” was avoided but how is it working out? Part 2

Who won in the UK-EU Trade and Cooperation Agreement? The Agreement is now in force without tariffs and quotas. As the first EU tariff and quota-free deal with any country, it looks like the EU got the deal it wanted even if it did compromise on the details.

Aftermarket ecommerce – Part 1

In this 2-post series, we look at how auto accessories brands and manufacturers can succeed in aftermarket ecommerce.

Tax, customs, importing, exporting, marketplace and web store ecommerce – what happens from 01.01.21

If you source or build products inside the UK and you sell to UK-resident customers, you can stop reading; no change for you. Likewise if you provide most services to the UK from the UK.