The Amazon effect: Shoppers fuel up on automotive accessories
The U.S. automotive market experienced a record year in 2016 with 17.55 million vehicles sold, putting an end to the decade of uncertainty and low sales. Even with all these new cars on the road, the average vehicle age in the U.S. is at an all-time high of 11.5 years old and there are over 14 million cars on the road over the age of 25.
With so many aging vehicles, the automotive aftermarket is thriving and has become one of the fastest-growing segment in online sales.
Enter Amazon. The eCommerce juggernaut is not new to automotive sales, having originally introduced auto parts to the platform back in 2006. Last year Amazon expanded its automotive arsenal by launching its own car research site and a parts marketplace, which allows shoppers to punch in their make and model to search for the correct parts. This and other conveniences reveal that the automotive aftermarket is not escaping Amazon's notice and the impact of Amazon on the market is already disruptive.
The numbers
Beating out both replacement parts categories is truck accessories with $185M. Sales are driven by towing accessories, making up over a third of the total category sales and responsible for the two top items: an electronic brake control from Tekonsha and a 9,500-pound capacity winch from Smittybilt. Growth in truck accessories is low; however, with most gains in the product group coming from appearance products such as wheel & tire accessories (55 percent) and appearance chemicals (30 percent).
Key findings
Judging by the first two quarters of 2017, Amazon is making some serious inroads, and the business opportunity for brands selling through the eCommerce platform is looking more attractive than ever. The key markets – aging vehicle maintenance, DIY mechanics, and a wave of new car sales driven by the recovered economy – are experiencing significant growth on Amazon and brands are taking note.
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