Author’s Note: Congratulations to Aftermarket Business World on launching the “Aftermarket IT Newsletter” and recognizing the increasing role that mobile, computer, digital and information technology plays in driving business success. AASA looks forward to contributing content and helping the aftermarket advance its use of technology.
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Respondents estimate that e-tailing – the online retail purchase of products by consumers and repair facilities online – has doubled its share of the aftermarket over the last five years and will more than double again by 2017.
This represents strong growth, yet automotive parts lag behind most other major industry verticals in e-tail sales, several of which approach and even exceed 50 percent. Can the automotive aftermarket learn from the consumer electronics, office products, or music industries?
It is interesting that there does not seem to be a clear channel leader in the e-tailing category to date. AASA’s survey respondents estimate the market is evenly divided amongst four categories of e-tailers: traditional resellers, general e-tailers, automotive-specific e-tailers and miscellaneous sellers and Web sites. E-tailers in these four categories vary in their approach:
- how they process attribute and application data,
- whether they are part of a two or three-step channel,
- whether they have strong allegiances to the industry,
- how they manage warranties and returns, and
- their level of technical competencies regarding products and applications.
This creates challenges for a supplier in identifying a single or simple model for servicing the e-tail channel.
Perspectives on how to service the e-tail space vary as much as the estimates of e-tailing’s market penetration. Most suppliers have to continue to meet the needs of their direct customers, while they increasingly are working with various channel partners and third party technology companies to manage data used to market and sell their products at e-tailing sites. Some suppliers are considering how to help their distributors enhance their Web sites, some suppliers are selling direct to e-tailers, and other suppliers are considering if and when they should launch their own direct Web sales efforts. Models are evolving slowly as the industry has been able to identify the exact size, scope and opportunity in the space.
Another challenge with e-tailing’s growth is brand management. Participants in AASA’s survey indicated that brand erosion and brand positioning were the top two challenges facing suppliers. The number of online marketplaces may be growing as fast as the number of parts sold online, and this creates all kinds of challenges in monitoring the entire Internet for appropriate and inappropriate uses of manufacturers’ brands, products and part numbers.
There is no doubt that online tools provide specific advantages to sellers and buyers, but correct information about parts, applications, returns, warranties and suppliers is essential to satisfied e-tailing consumers. AASA is embarking on several initiatives (beginning with the aforementioned survey) to help suppliers and the aftermarket industry meet the demands of the e-tailing channel.
I will address aftermarket e-tailing trends and discuss some of AASA’s initiatives in future articles.
About the Author
Chris Gardner is vice president, programs and member services, for the Automotive Aftermarket Suppliers Association (AASA). He is the executive director of the AASA Technology Council (ATC), which provides leadership and a forum for technology leaders from supplier companies to exchange best practices, identify leading technology trends and address technology issues in the aftermarket.
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