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Auto Business Outlook | Monday, August 05, 2024
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Building a successful e-commerce platform for the automotive aftermarket involves addressing challenges, price competition, and supply chain disruptions.
FREMONT, CA: Several important factors demand your attention when building the ideal e-commerce platform for your automotive aftermarket business. Automotive parts present an uncommon challenge for other retailers who deal in more uniform goods. Vehicle owners face many options and obstacles when they want to purchase new parts or accessories. The initial choice in the automotive aftermarket involves deciding between an OEM (Original Equipment Manufacturer) part and an aftermarket replacement. The next challenge is determining whether the chosen aftermarket part is compatible with the customer's particular vehicle once they have decided to purchase an aftermarket part through an online shopping experience. For them, it may be a matter of life or death whether your customer base can confidently assess the suitability of the parts they purchase from your online store.
Although not exclusive to the automotive e-commerce sector, today's aftermarket parts retailers face intense price competition. Like other industries, the automotive sector has experienced significant market consolidation, making it difficult for smaller, online-only brands to compete successfully. Automotive companies must look into various online marketplaces to reach a larger customer base.
Even though price competition can be intimidating, there are many ways to stay competitive in a time when pricing wars are common. It is important to remember that the majority of manufacturers impose some base pricing. To protect the value of their brand, manufacturers frequently demand that distributors adhere to a minimum advertised price (MAP). Both manufacturers and search engines are serious about enforcing MAP pricing. Pricing can help you gain market share, but a bad user experience can hinder your progress. When improving user experience, a variety of additional factors are taken into account. Customers want the reassurance that they can contact someone for help with newly purchased auto parts or to learn more about a product before making a purchase.
Established brands have an advantage because of their existing levels of customer service and customer trust. It is essential to uphold a professional standard of customer service, especially in the beginning. Building trust with your user base should be a priority, whether through an active online presence on social media platforms or quick responses to customer inquiries.
The automotive industry also has to deal with difficulties caused by supply chain disruptions. Manufacturing of automotive aftermarket parts suffered a serious setback due to the pandemic. Despite rising new car prices, consumer demand remained strong. The same applied to aftermarket components. Numerous automotive e-commerce businesses struggled to keep parts available throughout the pandemic. As a result, keeping a real-time inventory feed was essential. Customers can expect to be assured that their orders will be delivered when they visit your website.
Ensuring customers can confidently find the right parts for their vehicles, adhering to pricing guidelines, and maintaining real-time inventory management is critical. Additionally, prioritizing excellent customer service and building trust can set your business apart. While challenges exist, the automotive e-commerce sector offers substantial rewards for those who navigate it successfully, providing customers with quality products and a seamless shopping experience.
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