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.”