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News   July 11, 2017   by Adam Malik

eBay, Amazon redrawing e-retailing lines

The boundaries of automotive e-retailing are being re-drawn by the likes of eBay and Amazon, a Frost & Sullivan report has found.

Innovative business models involving collaboration with suppliers, network development with installers, service aggregation, engagement of subscription-based services and more are the driving force, according to its Competitive Profiling of Automotive eRetailers in Americas Region analysis.

The aftermarket e-retailing industry is expected to grow by 12 per cent through to 2023, it added.

“In a fiercely competitive, rapidly evolving ecosystem, e-retailers should look toward differentiating themselves by offering new business models and providing unique value and convenience to their customers,” said Vasanth Raj, Frost & Sullivan’s 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.”

According to Frost & Sullivan, e-retail 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 e-retailers, suppliers and original equipment manufacturers (OEMs).

“Mass e-retailers such as Amazon and eBay have the strongest overall e-retailer portfolios in the Americas,” said Raj. “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.”