RevolutionParts provides a platform that helps auto dealerships establish online parts stores. As of 2015, the company has processed $100 million in online parts sales.
What are some key challenges dealers face in selling parts online?
I think the technology is pretty easy to use at this point. What is a challenging for parts departments in particular is getting some of the marketing off the ground. They also have to recognize that selling parts online is a separate business and you have to run it as such. You can't just set up a store and expect orders to come in. We spend a lot of time with dealers just explaining how to get the word out about the site.
Are there many operational challenges?
One thing dealers are equipped to do is ship parts. We don't see many logistics issues. They do need to staff appropriately to answer questions for online customers. Customers also want to know how quickly they can get a part. Dealers may not have the level of inventory to send a part immediately. It varies. Getting a part quickly can be a challenge.
What misconceptions do dealers have about online parts sales?
They want sales to ramp up right away. There is a misconception about how long it will take to establish yourself online. You have to set the expectation that it will take three to six months to see if it's working, or if you have the right marketing strategy.
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