Why don't dealers digitize Parts and Accessories sales?

[Kmag70]

Hi All,

I've been thinking why dealerships don't digitize their parts and accessories sales? Like, create an eCommerce store where customers can buy online.

When I was leading the marketing at a big dealer group, I created an eCommerce store for the parts department on Shopify. Since there were no other listings and was optimized for SEO through Google Shopping, it used to get 10-15 orders from noncustomers through the store every week without any marketing.

We also did a lot of upselling to the existing customers by running event-based email campaigns like giving discounts on birthdays and anniversaries, etc.

The ROI was like 30-40x if I look back. I wonder why don't many dealers do this?

P.S. I am thinking of adding this custom solution service to my agency. Let me know if anyone would be interested.

 

[AlexCaradonna]

Hi All,

I've been thinking why dealerships don't digitize their parts and accessories sales? Like, create an eCommerce store where customers can buy online.

When I was leading the marketing at a big dealer group, I created an eCommerce store for the parts department on Shopify. Since there were no other listings and was optimized for SEO through Google Shopping, it used to get 10-15 orders from noncustomers through the store every week without any marketing.

We also did a lot of upselling to the existing customers by running event-based email campaigns like giving discounts on birthdays and anniversaries, etc.

The ROI was like 30-40x if I look back. I wonder why don't many dealers do this?

P.S. I am thinking of adding this custom solution service to my agency. Let me know if anyone would be interested.

Was trying to follow along with this post on Reddit, but Reddit won't load for me today

I'm working on restoring an '84 Bronco II at the moment so a lot of that revolves around tracking down old parts (or at least compatible parts). I have noticed a handful of dealers selling one off parts on eBay and maybe this is just the small sample size but each dealer was quite rural. Seems like it would be an awesome additional service to add to your agency especially if you can pull in some old KPIs based on what you implemented at your old dealer group.

 

[Tallcool1]

I guess I am not certain what you mean. I believe many dealerships do sell parts online.

Subaru Crosstrek Radio

Equinox License Plate Bracket

Ford F-150 Differential

Camry Splash Guards

I just randomly googled some things.

Are you talking about something different?

 

[Carsten]

I've browsed the Mopar website and buy parts on Amazon that are supplied by various OEM dealers.

It's a good idea when you first think of it but
Isn't it in the best interest of the Dealer to only sell parts to people who come to dealership physically rather than selling parts on a website and never get a chance to sell anything else?

 

[Kmag70]

Was trying to follow along with this post on Reddit, but Reddit won't load for me today

I'm working on restoring an '84 Bronco II at the moment so a lot of that revolves around tracking down old parts (or at least compatible parts). I have noticed a handful of dealers selling one off parts on eBay and maybe this is just the small sample size but each dealer was quite rural. Seems like it would be an awesome additional service to add to your agency especially if you can pull in some old KPIs based on what you implemented at your old dealer group.

The good ol Reddit. Never stops crashing.

It was an insightful thread on Reddit. It seems the big issues are around profitability with low margins, high return rates, logistics, and effort-to-reward ratio. I still believe if systemized with proper integration from DMS to logistics that automates maximum stuff, it can be profitable for dealers.

 

[Kmag70]

I've browsed the Mopar website and buy parts on Amazon that are supplied by various OEM dealers.

It's a good idea when you first think of it but
Isn't it in the best interest of the Dealer to only sell parts to people who come to dealership physically rather than selling parts on a website and never get a chance to sell anything else?

You're correct. It seems it's a profitability and maintenance issue. There needs to be enough volume for it to make sense for dealers to invest in int.

 

[Kmag70]

I guess I am not certain what you mean. I believe many dealerships do sell parts online.

Subaru Crosstrek Radio

Equinox License Plate Bracket

Ford F-150 Differential

Camry Splash Guards

I just randomly googled some things.

Are you talking about something different?

I am in the AU. It seems few OEMs in the US have started moving in the direction. Nothing here in the AU.

Although still the user experience feels crap. And dealers don't have much control on the marketing side.

Here's an example of a big dealer group's eCommerce store in the AU - Genuine Car Parts, Auto Accessories & Spares Online | Alan Mance Store

I meant something like this.

 

[Mustafa Mustafa]

SimplePart and Revolution Part currently offer eCommerce parts platforms. I manage online part sales for an OEM, currently 350 out of 600 of my dealers sell online. The biggest hurdle to overcome is replicating the manufacture catalog which contains up to several hundreds of thousands of part numbers and countless fitment applications into a shoppable online experience. Only those two companies have been able to do so.

 

[DrewAment]

I have looked at probably 6 different stores that sell parts online (setup, process, pricing, costs, manpower). Its a race to the bottom for price, as what else can you really offer? Anyone can google a part, or part number, and generally will go with the lowest price. MAYBE the business who can get it there the fastest if not much difference in net cost to them as a customer.

I have only seen one dealer that "makes money", selling 6 figures a month in parts online. But they do it through high volume, and minimal profit == in order to get the next "level" of parts rebates from the OEM. Go figure. Average ticket is just over $200. Now think of the manpower needed, shipping, etc etc etc - to run that volume. It is not a endeavor for the faint of heart, nor dealers that don't have a long term vision and - in the beginning - deep pockets.

Some interesting side data .....

And what are the people buying? Top 10 parts bought online in last 90 days



Now compare that to the top 10 items viewed:



Lastly - top 10 items added to cart.