Amazon’s ‘headlock’ on Millennials to impact aftermarket

Amazon’s strong appeal to Millennials is set to significantly impact the automotive aftermarket, according to a recently released report, as this generation becomes the largest driver of parts and repair volume.

“Amazon has a headlock on Millennials, who will generate the largest share of light vehicle aftermarket parts and repair volume over the balance of this decade,” according to the report Millennials Rev Amazon Aftermarket Sales by Lang Marketing.

This generation, born between 1981 and the late 1990s, is the largest in the U.S. and will be the key driver of the economy as Baby Boomers retire and Generation Z gains economic traction.

Millennials rank Amazon as the most relevant product and service brand in the U.S., overshadowing tech giants like Apple and Google, and consumer brands such as Sony, Starbucks and Nike.

“Millennials’ dedication to Amazon has significant implications for this e-commerce giant’s future success in selling automotive parts and repairs,” the report said.

This loyalty is crucial as Amazon aims to use the aftermarket as a foothold to access the massive, trillion-dollar mobility market of the future.

Amazon has expanded into various services, including auto repair. The company’s product review feature and wide range of brand and price alternatives resonate strongly with Millennials, the report said, who value peer-to-peer opinion sharing and competitive pricing over traditional brand loyalty.

The impact of Amazon’s appeal to Millennials on the aftermarket is profound, Lang noted. Millennials are already key players in the DIY parts market and are increasingly influential in the Do-It-For-Me (DIFM) sector. Lang Marketing’s study of repair shops’ internet buying activities highlighted significant differences between the practices of Millennial technicians and their older counterparts.

“Equally important to Amazon’s future direction and success in the aftermarket is its growing interest in using the aftermarket as a foothold for gaining access to the massive, trillion-dollar mobility market of the future,” the report stated.

This interest is evident in Amazon’s o2o (online to offline) transactions, which change the dynamics of parts delivery. By scheduling auto repairs online at approved outlets, consumers can provide lead time for necessary parts to arrive, reducing the need for rapid delivery and shifting the focus from local repair shops to large platforms like Amazon.

With its position of reliance and trust among Millennials, Amazon is poised to expand its substantial auto parts DIY sales base and increase its auto repair offerings using the o2o model, Lang observed.