As the sales of auto parts in the United States continue to grow, E-commerce has now become one of the most popular sale channels in the US auto parts market over the recent years. Several recent market reports suggest that the E-commerce auto parts sales in the US has already outpaced brick & mortar sales, while the two largest American E-commerce retailers Amazon and eBay are still dominating the E-commerce auto parts market in the country.
According to figures from Grand View Research, the overall auto parts market in the US has surpassed US$70 billion in revenue since 2016. The Financial Times also reported that, the sales at the major auto parts chains in the US increased 7% year on year in 2016, registering much bigger growth than the total sales of automotive vehicles in the US, which grew only 1% year on year over the last decade. The growth of auto parts sales is believed to be mainly driven by the increased numbers of aging vehicles in the US, which facilitated business in the aftermarket auto parts market.
The recent trend in the US auto parts market is that increasing sales are shifting from brick & mortar sellers to online E-commerce marketplaces. The figures from market research firm Hedges & Company show that E-commerce auto parts sales in the US totaled US$7.4 billion in 2016, registering an impressive 16% growth from 2015. And this momentum is expected to continue through 2017, as E-commerce auto parts sales is forecasted to reach US$8.9 billion this year, posting another 16% growth over last year. Meanwhile, over US$4 billion in online sales is estimated to be made via mobile devices in 2017.
Early this year, Amazon, who acquired Whole Foods for USD 13.7 billion, just announced one of its recent forays into auto parts market. The American E-commerce giant has struck deals with several of the largest auto parts suppliers in the US – including Robert Bosch, Federal-Mogul, Dorman Products and Cardone Industries – to sell their auto parts products directly through Amazon, according to the report from New York Post. It is also reported that Amazon’s auto parts prices are averagely 23% less than its brick & mortar rivals such as Autozone, Advance Auto Parts, and O’Reilly Auto Parts.
The future of E-commerce auto parts sales are very promising as major E-commerce sellers continue to expand their auto parts businesses and improve their quick on-time parts delivery services. Moreover, many niche online auto parts retailers are also doing an increasingly great job for serving very narrow segments of the auto parts market, which will also help boost E-commerce auto parts sales in the US in the future