Amazon and eBay’s Marketplace Platforms Transform Automotive eRetail Market

Automotive eRetailers in the Americas are redrawing the boundaries of aftermarket service through innovative business models involving supplier collaboration, installer network development, service aggregation, business-to-business expansion, subscription-based engagement, technician outreach, and in-vehicle sales, according to Frost & Sullivan analysis. These activities are creating unique value for customers and transforming automotive product sellers into end-to-end solution providers.

An analysis report by Frost & Sullivan, called Competitive Profiling of Automotive eRetailers in Americas Region, finds that aftermarket eRetail revenues in the U.S. are expected to increase at a compound annual growth rate (CAGR) of 12 percent between 2015-2023. The study provides in-depth analysis of key trends, challenges, developments, and future opportunities for automotive eRetailing in the Americas region.

“In a fiercely competitive, rapidly evolving ecosystem, eRetailers should look toward differentiating themselves by offering new business models and providing unique value and convenience to their customers,” said Vasanth Raj, said Frost & Sullivan mobility senior research analyst. “Establishing an effective fulfillment network, increasing market presence, by attracting do-it-for-me (DIFM) customers, and providing loyalty programs, are strategies that will ensure success.”

eRetail developments and trends within the Americas region encouraging transformation include:

  • Smart logistics and last-mile delivery options to provide innovative methods of delivery and enhanced customer services, such as a crowdsourcing delivery system
  • Online-to-offline (O2O) service networks with independent garages to create an aggregated physical footprint and attract DIFM customers
  • Aggressive online channel expansion by traditional mobility players
  • Collaboration or mergers and acquisitions between eRetailers, suppliers and original equipment manufacturers (OEMs)

“Mass eRetailers such as Amazon and eBay have the strongest overall eRetailer portfolios in the Americas,” Raj said. “The majority of market participants have full product coverage but limited geographic coverage. Amazon is constantly innovating last-mile delivery options across all products. Rapid fulfillment is critical to auto parts growth as it will allow the company to be more competitive with traditional aftermarket sellers.”

Related Articles

Back to top button