Online sales for automotive components and accessories have increased three-fold in the last half decade as businesses without an online presence finally made one. A study done by McKinsey shows that this growth is predicted to continue at a rate of 3% annually until 2030. According to the McKinsey poll, 80 percent of auto parts sales personnel say they are presently not adequately prepared to owe to a lack of strategic focus and expertise, as well as a lack of digital technology and marketing resources.
There’s no doubt that increasing sales is a top goal for any auto-part store owner. You may not be sure how to go about it in the right way. The good news is that you can figure out how to do it by focusing on your product and target audience, as well as the online platforms where you can sell them. If you’re looking for ways to increase auto parts sales, then look no further!
In this article, we will discuss different tactics that you can use to increase sales of third-party automotive parts.
Develop a Comprehensive Business Plan
The first step to increasing auto parts sales is to develop a comprehensive business plan. This will help you understand your target audience, choose an auto part niche, streamline the ordering process, and more. By taking the time to develop a well-thought-out business plan, you’ll be in a much better position to increase sales and grow your business.
An automotive aftermarket business plan needs to focus on niche target markets, product lines, marketing strategies, and objectives.
For example, a business plan for an auto parts store that specializes in aftermarket parts for luxury cars would need to focus on different target markets than a store that sells parts for budget-friendly cars. The former might choose to focus on selling high-end performance parts while the latter could focus on offering low-cost alternatives to OEM parts.
The products you sell should also be taken into consideration when developing your business plan. You’ll need to decide which automotive aftermarket products you want to carry in your store. Once you’ve determined what products you want to sell, you can then develop marketing strategies and objectives that will help increase sales of those specific products.
Understand Your Target Audience
In order to increase auto parts sales, you need to understand your target audience. Who are they? What do they drive? What kind of aftermarket parts are they looking for? Once you have a good understanding of your target audience, you can then develop marketing strategies that will appeal to them.
For example, if your target audience is young adults who drive imported cars, then you’ll want to focus on selling aftermarket parts that would appeal to that demographic. This could include things like body kits, performance parts, and other accessories that would make their cars stand out from the crowd.
On the other hand, if your target audience is older adults who drive domestic cars, then you’ll want to focus on selling parts that are more practical. This could include things like replacement parts, towing accessories, and storage solutions.
Before you can take your automotive business online, it’s important to know who your target audience is. Google Analytics allows website owners to study their current user demographics so they can better understand the needs and wants of their users. If you don’t have a website yet, there are plenty of market research resources available online on the automotive aftermarket shopper’s behavior. Knowing your target audience before creating your eCommerce storefront will help ensure that you’re able to sell automobile parts effectively online.
By understanding your target audience, you’ll be in a much better position to increase auto parts sales.
Choose a Product Niche
Another way to increase auto parts sales is to choose a product niche. When you focus on selling a specific type of automotive part, you’re more likely to appeal to a certain group of people. This can help increase sales by making it easier for potential customers to find the parts they’re looking for.
For example, if you sell performance parts, then you’ll be able to attract customers who are looking for those types of products. On the other hand, if you sell replacement parts, then you’ll be able to attract customers who need those types of products.
No matter what type of automotive aftermarket business you have, there’s a product niche that’s right for you. By choosing the right product niche, you’ll be able to increase auto parts sales and grow your business.
You will also need to understand the difference between OEM and third-party auto parts and accessories.
- OEM: Original Equipment Manufacturer – OEM stands for original equipment manufacturer. This means that the components are produced by the same company that produces parts for car companies.
- Third-Party Manufacturers – These refer to any other company that produces automotive aftermarket products but doesn’t produce original equipment.
There are pros and cons to both OEM and third-party components. OEM parts are usually more expensive, but they’re also covered by a warranty. Third-party parts are often cheaper, but they might not always be as high quality as OEM parts.
When you’re choosing a product niche, it’s important to consider the needs of your target audience. If they’re looking for high-quality parts that are covered by a warranty, then you’ll want to focus on OEM parts. On the other hand, if they’re looking for cheaper parts that don’t have a warranty, then you’ll want to focus on third-party parts. No matter what product niche you choose, it’s important to make sure that you’re able to meet the needs of your target audience.
Selling Auto Parts and Accessories Online
Consumers are no longer limited to purchasing goods in one place. When you buy and sell online, there’s more convenience in using search engines for price comparisons, easier shopping, and even location-based purchases. When selling vehicle components on the internet, consider the following channels:
- Your Own Website – When you have your own eCommerce store, you are in complete control. This means that, unlike eBay and Amazon, you won’t be charged extra fees for each sale. You can also sell items at any price point you want. By having your own shop front, you’re able to more accurately express your brand identity and build stronger relationships with customers. These interactions eventually turn into customer loyalty and recurring business – both of which are more valuable than one-time sales from new clients.
- eBay Motors – It’s a great place to sell automobile components, especially if you’re selling one-of-a-kind parts or novelties. According to eBay, there were 183 million active users of its marketplace as of the fourth quarter of 2019, up 2 percent from the previous year’s quarter. It’s also a popular location for auto parts: according to eBay, there are about 90 million active auto part listings, and three items or accessories are bought every second. eBay provides a number of automated listing creation tools, including fitment detection systems that automatically calculate dimension requirements.
- Amazon – Amazon’s marketplace also exposes small companies to a larger audience of potential buyers. According to a recent poll, Amazon was the most popular online store in the United States last year. There are certain things to think about before selling your car parts on Amazon. Refurbished items must come with a warranty, and product pictures must be of a particular format, among other things.
- Walmart Marketplace – Walmart is one of the world’s largest retailers, so it stands to reason that its third-party eCommerce marketplace would be popular among consumers. Walmart Marketplace is a good option for sellers who want to increase their reach without incurring the high costs of advertising.
Special Packages of Wear Parts and Maintenance Kits
Machines, systems, and equipment, in general, require maintenance and the replacement of worn components on a regular basis. As a result of contact with rubbing or abrasive materials, wear and tear are unavoidable. Make it easier for your clients, service department technicians, and maintenance staff by offering wear part replacement packs or maintenance kits on a regular basis to increase sales. Create separate product pages for these maintenance kits on your website or online portal. The required maintenance kit’s order number may be simply added to the machine’s maintenance instructions in an effortless manner.
Keep Fitment Data Accurate and Up-to-Date
The importance of fitting data in the online components industry cannot be overstated. While many auto parts stores receive the same product information as an aftermarket manufacturer’s package, keeping fitment data up to date is vital. You should also make sure that all of your listings have correct vehicle specifications and check prices across multiple websites to ensure you receive the greatest price from every vendor.
Furthermore, be proactive about keeping your database up to date by using a live feed or file upload approach. This will assist you in avoiding mistakes and prevent consumers from purchasing the incorrect product. myFitment is a digital tool that can help increase your website’s accuracy by automatically matching products to vehicles.