As we approach 2024, the automotive industry faces unprecedented challenges and exciting opportunities. For parts dealers, the end of the year is about navigating through changes and leveraging them to fast-track revenue growth.

Where parts departments are concerned, these changes will significantly influence the availability and demand for auto parts. This raises questions for dealers on adapting and thriving in a market driven by technological advancements, environmental concerns, and shifting consumer preferences.

Preparing for upcoming industry shifts is necessary so your business doesn’t get left behind. Here are five key automotive trends that your parts department could expect in 2024.

Increased Demand for Electric Vehicle Components

One of the most significant shifts in the parts industry is the increasing demand for Electric Vehicle (EV) components. This trend is driven by the rapid growth in the popularity of EVs globally. A report by the International Energy Agency highlighted that 14% of new vehicles globally sold and 8% of all new cars sold in the United States were electric in 2022, an increase from previous years. This trend is expected to continue throughout the upcoming years.

This shift presents both a challenge and an opportunity for parts businesses, especially at the dealership level. The rise in EVs means increased demand for specific components like batteries, electric motors, and specialized electronic parts. These components are distinct from those in traditional internal combustion engine (ICE) vehicles and require specialized expertise.

For parts departments, this means expanding inventory to include EV-specific parts. Additionally, investing in training for staff to handle these new types of components is crucial. This ensures the parts department keeps up with demand and positions the dealership as a knowledgeable and reliable source of EV parts and services.

The increasing demand for EV components is not just a consumer fad; it’s a critical shift in the automotive landscape that parts departments must prepare for to stay competitive and meet the evolving needs of their customers.

Advancements in Automotive Technology

In the upcoming years, advancements in automotive technology are set to reshape the auto parts industry. The upcoming years will be marked by rapid developments in vehicle technology, changing how we interact with and maintain our vehicles.

One of the key areas of advancement is autonomous driving technology. This once-futuristic concept is quickly becoming a reality, with autonomous cars already on the road. These vehicles come equipped with advanced sensors, cameras, and artificial intelligence systems, enabling them to navigate complex traffic scenarios safely. 

A prime example of this phenomenon is Waymo, the autonomous taxi service that is now available in select U.S. cities, including Phoenix, Los Angeles, San Francisco, and Austin. 

Waymo’s autonomous capabilities are also becoming increasingly available in personal vehicles. Tesla, a pioneer in EVs, has been at the forefront of integrating advanced technologies into its cars, including the enhancement of autonomous driving capabilities. Tesla’s advanced driver-assistance system provides features like self-parking, lane centering, and traffic-aware cruise control. This system relies on sophisticated sensors, cameras, and software, setting a precedent for autonomous driving technology.

The increasing presence of autonomous vehicles on the roads is expected to make commuting safer and more efficient.

The advancements in automotive technology require parts departments to be more technologically savvy and adaptable than ever. Staying updated with these advancements and being prepared to service and supply parts for these advanced vehicles as they roll out will be key to thriving in the future.

Prolonged Use of Consumer Vehicles

A notable trend that will continue is consumers choosing to keep their vehicles for extended periods. A study by S&P Global Mobility revealed that the average age of U.S. cars and light trucks has risen to a record 12.5 years. This trend is attributed to factors such as supply constraints on dealer inventories of new vehicles and economic pressures like higher inflation and interest rates. 

These factors have influenced consumer behavior, leading to prolonged use of existing vehicles. ​The decision to extend the life of a car has significant implications for the auto parts industry.

Aging vehicles require additional maintenance and replacement parts. This trend leads to a steady demand for quality OEM parts as consumers seek to ensure their vehicles remain reliable and safe. For parts departments, this means an opportunity to cater to a market that values durability and longevity in auto parts.

The trend of consumers keeping their vehicles longer presents both a challenge and an opportunity for auto parts departments. It demands a focus on high-quality parts and expert service to meet customers’ needs, investing in the upkeep of their older vehicles.

Global Supply Chain Challenges

The impact of global supply chain challenges is expected to continue throughout 2024. These challenges are complex, ranging from the aftermath of a global pandemic to evolving environmental regulations and economic pressures.

The supply chain has been heavily impacted by the 2020 COVID pandemic, which led to factory shutdowns and port congestions. These factors have forced organizations to rethink building a resilient supply chain to thrive amidst these risks​.

In addition, labor shortages, particularly in the manufacturing sector, along with the rising cost of raw materials and freight due to inflation, are expected to continue to pose risks to supply chain management (SCM). These factors can lead to slower production, disrupted distribution, and delayed deliveries, impacting the timely availability of auto parts​.

To navigate these challenges, parts departments need to embrace digital innovations, prepare for potential disruptions from labor shortages and inflation, and adapt their strategies to maintain a steady and efficient supply chain. A proactive approach will be key to their success.

Consumer Desire for Online Shopping Experiences

It should come as no surprise that the parts industry is seeing a significant shift towards selling parts and accessories online. This evolution is driven by consumers’ growing preference for digital convenience and simplified shopping experiences. Failure to adapt to this trend will cause parts departments to fall behind the competition.

The rise of online marketplaces and the demand for quick, secure shipping are reshaping how parts are sold. Embracing parts eCommerce is no longer optional; it has become vital for growth. Selling parts online allows dealerships to expand their reach beyond their local customers, tapping into a nationwide market and increasing sales opportunities.

Digitizing the parts department involves more than just setting up an online store; it requires an integrated approach to managing inventory, processing orders, streamlining shipping, and ensuring customer satisfaction. 

The move online is essential for parts departments in 2024. It’s about leveraging technology to enhance operational efficiency, expand customer reach, and drive growth in an increasingly digital marketplace.

With RevolutionParts, your parts department can seamlessly transition into this digital future. Whether you want to sell parts on your dealership website, your dedicated parts web store, or on today’s largest marketplaces like Amazon and eBay, RevolutionParts has a solution for you. 

Our platform offers an intuitive, comprehensive solution that covers every aspect of online sales. From a user-friendly interface to advanced inventory management systems, we ensure your transition to digital is smooth and efficient.

Our integrated tools streamline order processing and provide robust shipping solutions, making it easier than ever to satisfy customer demands for quick and secure delivery. With RevolutionParts, you’re not just opening an online store but enhancing your entire sales and supply chain process.

Moreover, our platform’s analytics and reporting features give valuable insights into customer behavior and sales trends, enabling you to make informed decisions and stay ahead in the market. RevolutionParts empowers your parts department to meet and exceed customer expectations in the modern age, driving significant growth and establishing your dealership as a leader in the evolving automotive parts industry.

Revolutionizing Parts Departments in 2024

The automotive industry is gearing up for transformative change in 2024, bringing many challenges and opportunities for parts departments. From the growing demand for electric vehicle components and the advancements in automotive technology to the rising age of vehicles on the road, the industry is rapidly evolving towards digital solutions.

By embracing these emerging trends, particularly the shift towards enhanced online sales, parts departments can position themselves for success.

RevolutionParts stands as a leader in this journey, offering a robust, integrated platform that simplifies the transition to digital solutions, ensuring that parts departments are equipped to meet the demands of a changing market.

With RevolutionParts, your parts department will be well-prepared to participate in this evolution and lead and redefine the standards of success in the automotive industry.

2023 tossed a new set of hurdles at car dealers, making it a year to remember – and not just because of the supply chain challenges that lingered. This time, the mix included the ripple effects of the UAW strike and the ever-climbing inflation. But, guess what? Despite these obstacles, online part sellers remained a vital lifeline. Despite these added twists and turns, online part sellers once again saw high sales during Cyber Weekend. This begs the question: why aren’t more dealers selling online? 

The big highlight? RevolutionParts dealers made a splash during the 2023 Cyber Weekend (Black Friday – Cyber Monday). They racked up an impressive $6,533,841 in parts and accessories sales! It’s a clear sign that the online parts market is not just surviving; it’s thriving.

Cyber Weekend 2023

Brand Breakdown

As we dive into the brand specifics of 2023, it’s exciting to spotlight the standout performers of Cyber Weekend. This year, certain brands shone brighter amidst diverse challenges, showcasing their resilience and appeal to customers.

Here are the five MVPs of Cyber Weekend 2023, brands that truly made their mark in the online parts market:

Cyber Weekend 2023 Top Selling Brands

Product Breakdown

With the cost of new and used vehicles skyrocketing, more people are sticking with their current rides. The average age of cars on the road is nearing 13 years – that’s a lot of birthdays! This means folks are investing more in keeping their cars running smoothly. Here’s what they were buying most during Cyber Weekend:

Cyber Weekend 2023 GMV by Product Type

Top-selling parts:

• Air Filter
• Brake Pads Front
• Serpentine Belt
• Brake Pads Rear
• Catalytic Converter

Channel Breakdown

When it comes to where these sales are happening, a dealer’s web store remains the top dog for revenue. This is not your dealership’s website, but a separate web store dedicated to your online parts business. But don’t sleep on marketplaces like eBay and Amazon – they’re key players, too. The trick is to spread your wings and sell across multiple channels.

Cyber Weekend 2023 Sales by Channel

The success of this Cyber Weekend isn’t just a win; it’s a clear signal that this market is robust, resilient, and ripe with opportunities. RevolutionParts dealerships have shown that they’re not just participating in this market – they’re leading it, and there’s no sign of slowing down. Their achievements are paving the way for an even more dynamic and prosperous future in the online automotive world.

And guess what? 2024 is just on the horizon, bringing with it new opportunities and possibilities. If you haven’t started selling online, now is the perfect time to dive in. The online market is buzzing with energy and potential – it’s a party you don’t want to miss. So, gear up and get ready to join this exciting journey into the future of automotive parts and accessories sales. Let’s make 2024 a year to remember!

As we rev up for 2024, the automotive industry is shifting gears, embracing an era where digital convenience and operational efficiency are preferred and expected. For Parts Managers, this means more than just keeping up with the pace—it’s about setting the trend and outpacing the competition.

Moving into the new year, your mind is turning to solutions that can help you streamline operations, improve sales processes, and reach a more tech-savvy customer base. The rise of online marketplaces, the demand for quick and protected shipping, and the need for smart inventory management are just a few of the areas ripe for innovation.

While tools like RevolutionParts’ Obsolescence Tool and RP Shipping offer solutions for online sellers, they are part of a larger strategy that savvy dealers can leverage to tap into the potential of online sales.

Whether it’s through adopting specialized tools or refining your approach to eCommerce, here are some strategies your parts department can tap into for a more profitable year.

Grow Your Reach with Online Sales

The number one opportunity for 2024 is, of course, embracing parts eCommerce. That’s because the transition to online sales is no longer optional; it’s necessary for growth. Selling parts online breaks down geographical barriers, allowing dealerships to sell nationwide and cater to a broader audience, effectively increasing sales.

RevolutionParts helps dealers meet this shift towards online shopping by offering tools designed to transition traditional parts businesses into online businesses. At the forefront is creating a branded web store that serves as the digital face of your parts department.

This isn’t just a generic online storefront; it’s a fully branded, professional-looking web store that aligns with your dealership’s identity and values, providing customers with a seamless shopping experience that mirrors the trust and professionalism they expect from your brand.

Beyond the branded web store, RevolutionParts further amplifies your online presence by integrating with today’s biggest online marketplaces, Amazon and eBay. These marketplaces are where countless potential customers browse and buy daily, presenting a lucrative channel for dealerships to significantly increase their parts sales. 

RevolutionParts simplifies the process of listing your inventory on multiple selling channels, all from a single dashboard. This makes it easier to manage and fulfill orders, track shipments, and provide excellent customer service.

In essence, RevolutionParts acts as a catalyst for dealerships to expand their parts business online. With its robust platform, dealerships are equipped with the necessary tools to start selling online and thrive in the competitive digital marketplace. As we look to 2024, leveraging such digital strategies is more than just an opportunity—it’s a strategic move to ensure continuous growth and success in the ever-evolving automotive landscape.

Engaging the Millennials and Gen Z Shoppers

A recent RevolutionParts survey shows that Millennials and Gen Z are emerging as the largest group of purchasers of online parts, making up 60% of shoppers.

These groups are not just buying more online but redefining the sales landscape with their unique purchasing behavior. Having grown up with access to the internet and its exponential growth, they are more inclined to use online platforms for their automotive needs. 

To tap into this growing market, dealerships must establish a robust online presence that resonates with these younger buyers. This requires an understanding of digital marketing and online sales, the implementation of user-friendly interfaces, and the assurance of secure, efficient transactions.

By focusing on Millennials and Gen Z, dealerships can align their sales strategies with current trends and lay the groundwork for long-term customer retention. RevolutionParts provides the tools and insights necessary to capture the attention of these demographics, ensuring that dealerships remain at the forefront of the industry’s evolution.

Embracing these changes and anticipating the needs of Millennials and Gen Z consumers is not just a forward-thinking strategy—it is an indispensable adaptation to the continuous evolution of the automotive parts sector.

Tighten Operations in the Parts Department

Efficiency is the key to rebuilding operations within the department. The need to bolster productivity is crucial, particularly when faced with the common challenge of a short-staffed team. 

The goal is clear: optimize processes to enable your team to work smarter, not harder.

For Parts Managers, this is a call to innovate and enhance their departmental processes to maximize productivity, especially when faced with a reduced workforce. The mission is simple: streamline operations to empower your team to accomplish more with less strain.

To boost operational efficiency, Parts Managers can focus on:

• Streamlining workflows to ensure each team member can efficiently manage their workload despite increased demands.

• Harnessing technological solutions to fill staffing gaps and drive the department towards higher sales and customer satisfaction.

At RevolutionParts, improving operations for our dealers is a major focus. Here are some key technological solutions we offer dealers selling through the RP Platform:

Obsolescence Tool: Helps manage inventory by preventing overstocking and reducing the risk of high parts obsolescence rates, thus saving costs and warehouse space.

RP Shipping: Optimizes the shipping process with shipping protection, lower carrier rates, and the ability to source and deliver parts locally through Same-Day Delivery.

By implementing these solutions, your department can offer services that meet the immediate needs of modern consumers, such as instilling customer confidence and ensuring timely and hassle-free delivery of parts. Embracing these innovations is not just about preparing for 2024; it’s about future-proofing your business in a rapidly evolving industry.

Transitioning Away from Parts Forms

In 2024, traditional parts request forms on dealership websites are becoming a relic of the past. These forms, which require manual entry and often lead to delays in response time, no longer align with the modern consumer’s immediate needs and expectations. The parts industry is rapidly moving towards more dynamic, user-friendly online experiences.

Traditional parts forms can be a setback rather than an asset for your parts department. Parts shoppers have to wait for a response, which can take hours to days, and this lag can be the deciding factor between a completed sale and a lost opportunity. Dealerships can’t afford such inefficiencies.

The alternative? A robust transition to listing parts directly on the dealership website for instant access and purchase. This approach aligns with the convenience online shoppers seek, allowing them to browse, get a quote, and order parts at any time of the day, any day of the year. It’s an open door to your inventory, without the need for phone calls or in-person visits that can be challenging for busy customers.

By leveraging platforms like RevolutionParts, dealerships can easily list their entire inventory online with our Website Plugin, streamlining the process from listing to sale. The platform is designed to handle the intricacies of automotive parts sales, including fitment data and cataloging, so customers can find the exact parts they need quickly and without hassle. This level of convenience enhances the customer experience and boosts the likelihood of repeat business.

• 24/7/365 Shopping: Customers can access your inventory round the clock, fitting their shopping into their busy schedules.

• Instant Quotes: By listing your parts online, parts shoppers get instant pricing, removing barriers to purchase.

• Convenience: The ease of finding and ordering parts online meets modern expectations for efficiency and service.

• Operational Efficiency: Dealerships can reduce the workload on parts department staff, freeing them up for more complex tasks.

In embracing these changes, dealerships not only meet the current standards of eCommerce but also position themselves at the forefront of the automotive parts industry, ready to capitalize on the increasing move to online sales. Transitioning away from traditional parts request forms to a more dynamic, integrated online presence is not just a step forward—it’s a leap into the future of automotive parts retailing.

Use Technology to Offload Obsolescence

Obsolescence within parts departments has long been a pressing issue, with many departments bearing an average obsolescence rate hovering around the 30% mark—far from the optimal goal of under 2%. As we progress, the automotive industry is presented with innovative solutions to this ongoing challenge.

2023 has seen a pivotal change in how parts departments tackle obsolescence. To significantly lower obsolescence rates, leveraging the power of online marketplaces like eBay Motors has become a strategic move. Recognized as one of today’s largest online marketplaces for automotive parts, eBay Motors operates at an impressive rate, with three parts sold every second, turning what was once considered obsolete into highly sought-after items.

To streamline the process of converting obsolete inventory into sales, RevolutionParts offers a tool specifically designed to target obsolescence. The Obsolescence Tool enables parts managers to identify aging stock and set custom pricing strategies. Its seamless integration with eBay Motors and other selling channels makes it even more powerful, allowing for easy access to a massive online customer base.

The RevolutionParts Obsolescence Tool and our integration with eBay Motors offer a dual advantage: they help parts departments reduce their obsolescence rate while tapping into a new revenue stream. It’s a testament to the potential of combining targeted software solutions with the expansive reach of online sales platforms. As a result, parts departments can now address obsolescence more effectively than ever, paving the way for healthier inventory levels and a more robust bottom line as we approach 2024.

Strategic Digital Marketing For the Parts Department

The necessity of digital marketing in driving parts sales cannot be overstated. Your parts department can enhance its visibility through targeted campaigns, SEO-optimized content, and social media engagement. It’s not just about being seen; it’s about being seen by the right people at the right time. 

Implementing marketing can be the difference between failure and success for your online parts business.

It is so important, which is why RevolutionParts offers services from its own in-house marketing agency. Dealers who take advantage of RevolutionParts’ marketing services have witnessed major results with substantial increases in website traffic, higher conversion rates, and significant returns on investment.

Success stories abound of parts departments that have doubled or even tripled their online sales, attributing their success to the strategic marketing services provided by RevolutionParts.

Effective marketing is not a luxury—it’s a necessity. As we look to the future, the message is clear: embracing digital marketing is not just about keeping up; it’s about taking the lead. With RevolutionParts, your department can harness the full potential of digital marketing to carve out a dominant position in the online marketplace.

Bottom Line

By tapping into the digital savviness of Millennials and Gen Z, revolutionizing traditional sales processes, and leveraging technology to combat obsolescence, dealerships are set to not just navigate but thrive in the evolving landscape of automotive parts retail.

This transformation extends beyond adopting new tools; it requires a cultural shift within the parts department to prioritize innovation, customer satisfaction, and proactive market engagement. 

Looking ahead to 2024, the automotive parts sector is poised to redefine excellence, powered by technology and propelled by visionary leadership. With RevolutionParts, your parts department can take on these opportunities to build a more successful year. Click the button below to schedule a time to talk with one of our parts eCommerce experts.

With many industry leaders concerned about the potential state of the economy going further into the year, dealerships need to find ways to secure their success now before further economic threats arise. 

While traditionally, the automotive industry is among the hardest hit when the economy becomes unstable parts sales tend to endure. 

This is largely because when the economy is unstable, consumers try to hold onto their money and not make any large purchases. This means they do not buy cars but instead hold onto the ones they have, opting to maintain and repair them.

Today, circumstances are a bit different for the dealership and its consumers. If a recession were to hit, dealers would realize that vehicle sales alone may not be enough to keep them afloat. With the average price of cars higher than ever and rising interest, consumers are already having difficulty making such a large purchase.

Automotive dealers must plan ahead and seek steady growth opportunities to keep their businesses running smoothly should a recession hit. Here are five strategies to implement at the dealership to secure your dealership’s sales even during economic hardships.

Diversify Sales Channels

Focusing all your efforts on one revenue stream isn’t an effective sales strategy. Today’s retailers sell across multiple selling channels to maximize their revenue potential, so your dealership needs to do the same. 

Given the high vehicle prices and interest rates, purchasing a new vehicle has become a challenge for many consumers; if a recession hits, this challenge will only intensify. However, one thing these consumers can still buy from you – something they’ll need more of – is replacement parts.

Sell Online to Parts Buyers 

The best ways to reach these customers are through a dedicated parts web store and online marketplaces like Amazon and eBay. When a replacement part is needed to keep a vehicle running, most DIY-ers begin their search online.

By diversifying your sales channels and taking your business online, you can reach a broader base of parts shoppers looking to repair their vehicles. Without an intuitive, user-friendly website that allows customers to find and purchase auto parts quickly, dealers risk losing customers to competitors. To combat this, dealers need to invest in a robust eCommerce strategy for the parts department.

They can do this by:

1. Utilizing a user-friendly eCommerce platform and establishing a web store.
2. Optimizing your parts web store for search engine visibility.
3. Engaging with customers through social media, email, and direct email.

Expand (B2B) Sales

Taking your business online is an effective direct-to-consumer (D2C) sales strategy. However, your dealership isn’t solely a D2C business model. The most successful dealers focus on developing an effective business-to-business (B2B) customer base.

With the average age of vehicles on the road today being 12.5 years and increasing, these vehicles are more often taken to local repair shops than to dealerships. While selling parts online can help capture business from these customers, many of them will still go to a repair shop. But this doesn’t mean you have to lose business from that customer, as those repair shops also need parts to make their repairs.

Expanding your B2B relationships with wholesale customers gives you key advantages. It helps you secure a more consistent revenue stream. It increases your visibility within your local area and helps your dealership build brand credibility. All of which can help contribute to your sales goals.

What areas should your parts department focus on when developing quality relationships with wholesale customers?

1. Form strategic partnerships with local repair shops and garages. Choose ones in your area that have the best reputation. 
2. Offer volume discounts and incentives for recurring customers. This helps incentivize them to become repeat customers and improve retention rates. 
3. Implement a dedicated B2B sales team. Your parts department might have more daily interaction with D2C customers. Still, developing sales tactics specifically for B2B customers is important. This helps lend more credibility to your dealership. 
4. Implement the RevolutionParts plugin on your dealership website to make it easy for your wholesale customers to get a quote, check availability, and order the parts they need.

Enhance Your Customer Experience

It pays to know how your customers engage with your dealership in-store and online. If customers aren’t leaving with a positive buying experience, they won’t return to your dealership. 

Enhancing your customer experience depends on a few key factors: reliable customer data, effective customer retention programs, and a keen eye for market trends.

What strategies should you implement or revise to reflect these factors?

Offer Customized Promotions and Discounts

Provide targeted promotional offers based on customer data. If you have a large customer base that spends a certain amount of money on trending parts, tailor your sales strategies to meet the demands of those customers. An example of this could be to offer them a 35% discount on their next parts order over $60. This will help you determine what offers resonate best with your customers. 

Create loyalty programs to encourage repeat business. Customer loyalty programs are aimed at nurturing customers into repeat buyers. Offering the right incentives within a loyalty program is key to increasing customer retention. Get feedback from your customers on what offers speak to them. 

Offer financing options for more expensive parts. This has become especially popular within the online retail market.

Offering payment plans for more expensive parts can drive more business than you think. Certain online payment platforms (i.e., PayPal) offer integrations with businesses that allow customers to pay in smaller installments over a certain period of time. It helps them budget more effectively and saves them money over time.

Improve Inventory Management and Cost Control

To be able to grow or maintain your dealership’s business during a recession, you need to have enough products to sell. Managing your parts inventory is crucial to staying competitive even during an economic downturn. 

Optimize Inventory Levels

To effectively manage your inventory, your processes need to be effective. Ensure that your current inventory is being cataloged and tagged correctly. Missing, inaccurate, and other information errors can often fly under the radar. Double and triple-check your current inventory before you consider putting in a parts order request. 

Regularly review and adjust stock levels based on demand. You can do this by using your system data analytics to forecast what parts have the highest demand based on your current customer base. From there, you can forecast future sales trends and stock up on parts with a quick sales turnaround. This will help you reduce obsolescence that may further tie up cash and lead to overhead costs behind the parts counter.

Reduce Costs Through Strategic Purchasing

Overhead costs on parts orders are one of the biggest problems in the parts department. Bulk orders of parts that don’t sell quickly or don’t sell at all tie up cash that could be used elsewhere. To combat this problem, dealers need to utilize a few key strategies.

Negotiate with suppliers for better prices and payment terms. The right supplier source can be the best option for the dealership. They can get you discounted prices on parts orders, solidify payment options, and more. If you find a supplier you like that’s a bit outside of your budget, negotiate with them to get the best deal for your business. 

Explore alternative suppliers to minimize supply chain disruptions. With a large concentration of competitors in your market, sometimes going to the tried-and-true auto parts suppliers isn’t an option. Look for alternative suppliers within and outside of your area to see where you can get the best deal for the same standard. 

Successful businesses make adjustments where they need to maintain a steady supply.

Monitor and Adapt to Market Changes

Whenever a major economic change occurs, the retail market adapts to meet shifts in buyer behavior, regulatory requirements, and consumer values. Staying up-to-date on market changes is essential to maintaining your dealership’s sales growth.

Stay informed on industry trends and economic indicators.

Where is the market shifting? How are consumers getting to eCommerce platforms? What content tactics are they engaging with the most? Understanding this data can help you better tailor your strategies to acquire and nurture customers of varying types. 

Regularly review sales performance and adjust strategies accordingly. What are the successful aspects of your current sales strategy? Where can you make improvements? Once you identify the weak links, you can better identify where your strategy falls short in delivering on those areas.

Maintain flexibility and adapt to changing market conditions. Change your business model where you can to maintain momentum as the market changes. Allocate budget and resources to implement new tools and tactics that will help you maintain steady sales growth.

Start with smaller changes that can be easily implemented into your daily processes before moving on to larger ones. This will help you effectively scale your business growth.

Take The Reins and Drive Success

The looming economic fluctuations don’t have to spell uncertainty for your dealership. By taking a proactive approach and strategically diversifying your sales channels, enhancing your customer experience, managing your inventory effectively, and staying adaptive to market changes, you can secure your dealership’s success against the tide of economic hardships.

Change is an inevitable part of the business landscape. The dealerships that stay flexible, keep their fingers on the pulse of the market and are ready to innovate and adapt will be the ones that ride out any storm and thrive on the other side.

Don’t wait for the storm to hit. Start implementing these strategies today and set your dealership on the path of resilience and growth, ready to navigate any economic conditions that may arise.

If you are interested in more insights into market changes for automotive eCommerce, check out our 2022 eCommerce Year in Review Report for 2022 review. This report will help you understand how the market is already changing.

Online shoppers have different wants and needs than the customers you’re used to dealing with at your dealership. There’s a reason they’re shopping online rather than in-store, after all.

Once you’re tuned into these key differences, you can cater to their desires, foster brand loyalty, and increase revenue. So let’s get started!

3  Similarities Between Shoppers

#1 They Expect Good Customer Service

Customer service shouldn’t be anything “special”… after all, it’s just common courtesy to treat a fellow human being with respect.

Many dealerships will ignore phone calls or wait days before answering emails from online shoppers. Would you ignore a customer at the parts counter for hours before answering their question?

Be kind to your online customers, just like you are to the ones at the counter. Just because you can’t see them face-to-face doesn’t mean an online shopper is worth less.

You don’t have to reply to emails the minute they hit your inbox. Online customers know that email is slower than a face-to-face conversation, but you should honestly attempt to answer all inquiries within one business day.

At the same time, the faster you reply to questions, the more likely you’ll get the sale. If you make an online shopper wait too long, they’ll probably take their question to one of your online parts competitors.

#2 They Don’t Like Paying For Shipping

Shipping costs are one of those necessary evils when selling online. Online shoppers know that not everyone can offer free shipping as Amazon does, but that doesn’t mean they like it.

Online part and accessory shoppers know that free shipping is rare for auto parts. Parts are often heavy, oversized, and odd-shaped… which raises the cost.

RELATED: 8 Tricks to Avoid Overpaying for Shipping

You don’t have to offer free shipping on your parts website, but it’s a powerful coupon you can offer customers to increase sales.

Try one of these promotions:

• Free shipping on any order over $150
• 50% off shipping during a holiday sale

#3 Shoppers Like a Good Sale

Who doesn’t like getting things at a discount?

Jump on any excuse you can find to discount your parts and accessories. Holidays, seasons, and random flash sales are all open season.

What type of coupon is best? That depends.

Free or discounted shipping is always a great go-to option. Another choice is to offer a straight discount, like 10% off or $10 off any order of $50 or more.

You can also make the discount specific to whatever your sale is. For example, if you’re running a “winter sales” promotion, try making all winter parts and accessories 15% off (while the rest of your inventory stays at a normal price).

Here are ways to promote:

• Promotional emails
• Packaging inserts
• Facebook and Twitter promos
• Automotive forums

3 Major Differences Between Shoppers

#1 Online Shoppers Are Willing to Wait for a Better Price

Online parts shoppers are savvy enough to find the best price. They’re willing to wait for it, too!

According to UPS’s “What’s Driving the Automotive Parts Online Shopper” study, 83% of customers compare prices before purchasing. Price matters. They’re also savvy enough to compare online prices with only a few clicks of their mouse, so you need to have competitive pricing.

They’re shopping online for price and convenience, not necessarily speed. Rather than drive to their local dealership to buy immediately, these customers are willing to wait a week or more for their purchase. Plus, they’ll wait even longer if it means free shipping!

What does this mean for your parts department?

Don’t be afraid to price comparatively! Selling parts online doesn’t mean you lose out because of smaller margins; it means you make gains due to more volume. Selling parts online is a volume game.

Take a look at this pricing matrix:

#2 They Expect a Quality Online Experience

Online shopping has become part of the typical shopping experience for most people, and consumers have come to expect a very specific experience.

⭐ They want a clean, easy-to-navigate website.

⭐ They want an easy and accurate way to find the parts that fit their vehicle.

⭐ They want a website that is suited for both mobile phones and tablets.

Easy, easy, easy!

If they get frustrated by the design of your parts eCommerce store, they’ll buy from somewhere else.

Website design is usually out of your hands as a Parts Manager, so make sure your parts eCommerce solution can offer all the following:

• A professional, visually appealing website that is easy to navigate and understand
• Multiple ways to search and VIN-decoding capability
• A straightforward checkout process, with real-time calculated tax and shipping cost
• Responsive/mobile-friendly website design

#3 They Research More and Return Less

We’ve already mentioned how important comparison shopping is to online buyers. These customers are willing to wait for a lower price, but they don’t want to wait a week for the wrong part to arrive. They want to get it right the first time.

Online automotive shoppers are typically the type that knows what they want. That is, they’re somewhat familiar with the car market, and they know which piece they’re looking for.

Only 27% of online automotive shoppers claimed to have returned an item bought online, compared to 62% of general online shoppers. 

The stats make it clear: These shoppers do their research. They know how complicated fitment can be, and they want to get it right.

This makes buyer confidence a top priority. Help them find the right part and ease their fears about getting something wrong.

How to Improve Buyer Confidence

• How to Set Up Your Return Policy and Reduce Returns
• The 3-Point Guide to Creating the Perfect Shipping Policy
• 6 Return-Handling Mistakes Eating into Your Profit Margins

Elevate Your Sales Game and Fast-Track Online Success

Understanding the unique preferences of online shoppers is crucial for your parts department’s success online. Every detail counts in cultivating loyalty and boosting online sales, from personalized customer service to strategic sales promotions. The journey from insight to action begins with recognizing these key differences and leveraging them to your advantage.

Ready to elevate your online sales strategy? Download our guide, “The 8 Keys to Successfully Selling OEM Parts Online,” for expert insights and actionable strategies to thrive in the online marketplace. Transform your approach today and unlock the full potential of your digital sales.

Moving into 2023, there will be many challenges and opportunities for dealers, and it’s imperative that dealerships prepare themselves. 

This is especially true for the parts department, as many of these trends directly affect the cost and supply of auto parts, leading dealers to question what they can do to help maintain steady auto parts sales. 

Here are five predicted automotive trends that your parts department should expect in 2023.

Get Your Parts Department Ready for 2023

2022 is almost over, and now is the time to set your parts department up for a successful new year. Get your parts department online with RevolutionParts to make the most of next year’s trends and opportunities. 

Schedule a demo today and learn how RevolutionParts can help your parts department generate more revenue in 2023.

2022 proved to be another challenging year for dealers as parts and chip shortages continued to plague the automotive industry. However, that did not stop online part sellers from surpassing 2021’s record sales for Cyber Weekend. Once again, parts eCommerce has proven to be an incredibly powerful selling channel for dealers. 

RevolutionParts dealers generated record-breaking sales for the 2022 Cyber Weekend (Black Friday – Cyber Monday). In fact, RevolutionParts dealers generated a whopping $6,565,736 in parts and accessories sales.

Cyber Weekend 2022

Brand Breakdown

Although brands across the board saw an increase in revenue in 2022, these were the top 5 performing brands for Cyber Weekend:

Cyber Weekend 2022 Top Selling Brands

Product Breakdown

In 2022, the cost of new and used vehicles soared, resulting in more people holding onto their current vehicles. With the average vehicle on the road nearing 13 years old, it is safe to assume that customers are investing more in their current vehicles by purchasing parts for repairs and maintenance. Here is our product breakdown for Cyber Weekend.

Cyber Weekend 2022 GMV by Product Type

Top-selling parts:

1. Control Module
2. Bumper Cover
3. Wheels
4. Catalytic Converter
5. Intake Manifold

Source Breakdown

In 2022, mobile sales accounted for a whopping 57.5% of purchases over Cyber Weekend. This is the first Cyber Weekend where mobile orders outpaced desktop orders, displaying the importance of a mobile-friendly experience.

Cyber Weekend 2022 Sales by Order Source

Data shows that a dealer’s web store continues to be the most significant source of revenue year after year. However, marketplaces like eBay and Amazon should not be overlooked. The secret to maximizing revenue is selling on multiple channels.

Cyber Weekend 2022 Sales by Channel

Despite the supply chain disruptions of 2022, this year’s Cyber Weekend proves that no challenge is too great for the online parts market. Every year, RevolutionParts dealerships continue to conquer the online automotive parts and accessories market, and there is no sign of them slowing down.

2023 is right around the corner, and if you are not selling online, now is the time to get in on the action!

RevolutionParts surveyed 200+ dealers to get their input on OEM programs and overall satisfaction with their current practices.

What We Found

While the majority of dealers reported that their OEM programs were somewhat satisfactory, 68% of dealers thought that OEM programs served their manufacturer’s needs more than their own. This is especially true for dealership parts departments, where OEM programs are most widely used. 

However, 57% of dealers report feeling that their OEM programs are ineffective at supporting parts eCommerce and solutions, and this can have a major impact on how successful a parts department is. 

Aside from the lack of eCommerce support, OEMs need to adjust their approach to building programs meant to help a dealership be more successful. Despite feeling somewhat satisfied with their OEM programs, dealers agreed that there are some major adjustments that need to be made. Aside from supporting eCommerce, manufacturers need to restructure their programs to include:

• Easier eCommerce tools and resources
• Offer better training and support for dealers
• Provide more incentives to help dealers reach their goals

With these changes dealers can:

• Grow their parts business exponentially
• Increase revenue
• Improve absorption rates
• Learn more about eCommerce tools and solutions
• Improve upon innovation
• Motivate their team members to take more initiative

If manufacturers want more dealers to adopt their OEM programs, they’re going to need to know what dealers need to make the program successful, and where they are currently falling short. If you want to learn more about how dealers view their OEM programs, download the full report:

Interested in partnering with RevolutionParts for your next Parts Program? Contact us today to schedule an appointment!

Before the pandemic, shopping online was a fairly common occurrence for most of us. We’ve all purchased items from online businesses and taken advantage of Amazon’s gigantic selection of products and quick shipping. 

However, the past year has really challenged us to seek even more of our products and services online. It challenged businesses to become more innovative to offer their consumers a digital option, and many people tried to take as much of their lives virtual as possible.  

And you know what? 

Consumers liked it. 

This preference for online shopping has extended into unexpected spaces, including the automotive industry. 

If you are still relying on a brick-and-mortar dealership to compete, you’re already slipping behind. If you’re not careful, another company will swoop in and clean up your business. 

If you want your dealership to remain competitive, then it’s time to go digital. In this blog, we will show you the sales and service tools you need to take your dealership online so you can meet your customers where they are.

What is a Digital Dealership?

With a Digital Dealership, you are bringing the dealership to the consumer. Your physical showroom isn’t the only place people will go to purchase a new car. Even more so, your physical storefront is not where someone is coming when they want to purchase parts or schedule a service appointment. 

Whether someone is shopping for a new vehicle, parts, or wants to book a service appointment, your Digital Dealership can let them do that from wherever they are. 

Going digital isn’t just about selling online; it helps make more in-person sales, too!

Benefits of a Digital Dealership

As more of our lives are going virtual, some dealerships have already begun to create a digital retailing space. The dealerships that have gotten a jump on this are experiencing massive growth that helps them crush their competition. 

A digital dealership means you don’t have to rely on the foot traffic that comes to your physical location. Plus, the extra online traffic can help drive revenue and success for the entire dealership. Here are some benefits you get from going digital. 

Increase Vehicle Sales 

With sites like Carvana popping up and driving a lot of success, dealers should be looking for ways to stay competitive and gain more business. The biggest takeaway we can get from Carvana is that people will and do buy vehicles online. 

And your dealership should, too.

Not only does offering new and used vehicles for purchase online help deliver more business to your digital dealership, but it also brings more people into your physical showroom. Did you know that in most cases your consumer’s journey starts online? Look at these crazy statistics about vehicle shoppers and their online activity:

• 14+ hours spent researching online 
• 76% of buyers search vehicle information online
• Average auto consumer visits 4+ websites before purchase

Sell More Auto Parts and Accessories

If you are trying to sell parts and accessories, sticking to a brick-and-mortar-only strategy is like being offered easy money and turning it down. In 2020, parts eCommerce became a $16B+ business, and if you are not selling online, you are missing out. 

Last year, parts departments that began selling online with RevolutionParts saw a 27% increase in revenue.

Right now, most dealerships only offer a parts order form on their website, and they rarely bring in much business. The truth is, most people will not fill out an order form. They want to be able to choose their part and checkout without having to wait for a response from the parts department. 

When most customers reach the order form, they will leave and search for another site willing to sell them the part online. This means you just lost your customer.

Schedule More Services

The internet has changed the way we all do things. Today, consumers are using it to research information to make better decisions about where they get their vehicles serviced. Dealerships must go to where their customers are, and right now, they are online. 

Providing the consumer with digital options to get information and estimates, schedule a service appointment, or get updates on their vehicle in your service lane, can:

• Build trust with your customers
• Increase profits (for the whole dealership!)
• Boost efficiency

All this means your dealership makes more money!

Vendors for Digital Dealership Solutions

Creating a digital dealership doesn’t need to be complicated. There are several digital tools specifically made for all the departments in your dealership, from the sales floor to the parts department.

Here is a list of digital tools available as you consider taking your dealership online. 

Auto Sales

Digital Motors

This eCommerce solution offers end-to-end solutions that empower your consumer to ‘buy from home’ at their convenience. Digital Motors provides your customer a flexible online journey, where they can easily find the vehicle they want and complete their entire purchase online. 

Roadster

The Express Storefront from Roadster helps you provide a great customer experience to consumers looking to purchase a vehicle, whether online or at your physical dealership. When customers choose to purchase their vehicle online, Roadster’s Express Storefront makes it easy for them to find their vehicle by offering extensive search filters and vehicle recommendations. 

They also get upfront pricing with the ability to choose convenient payment options, value their trade-in, add service and protection plans, accessorize, and finalize their purchase. The consumer will also be able to schedule a delivery or pick-up to complete their shopping experience. 

Tagrail

With Tagrail, you can showcase your inventory and allow customers to purchase their vehicles online. When a consumer lands on your site, they can easily search your inventory and shop by payments, making it easy to find a vehicle that matches their budget.

You are also able to interact with your customers in real-time to assist them during their purchase. For customers who prefer to stop into your showroom, Tagrail can provide kiosks that will enable them to streamline the buying process for a better in-store customer experience. 

Finance and Insurance (F&I)

RouteOne

RouteOne offers dealers vehicle financing solutions with a credit application system that connects you with over 1,700 finance sources and more than 200 Dealership Service Providers. Their solution helps streamline the financing process, from filling out their credit application to eContracting and eSigning, to provide a great digital retail experience. Once the customer is approved for a line of credit and all documents have been signed, the documents are stored in a centralized, automated, and secure location. 

Darwin Automotive

Taking your F&I services to the next level is easy with Darwin Automotive. They provide dealers with solutions aimed at increasing F&I add-ons after the sale and reducing chargebacks. By utilizing big data and predictive analytics, Darwin Automotive gives your customer a custom buying experience suited to their individual financial situation and vehicle needs. 

DealerTrack UniFI

The DealerTrack UniFI system helps your F&I team streamline the deal-closing process and provides consumers with contracts that can be easily generated for both retail and lease deals. You can also provide your consumer with personalized product recommendations through this intuitive software. 

Service Lane

Text2Drive

Text2Drive offers your customers a simple yet innovative way to communicate with your dealership through a powerful text messaging platform. Now you can send your customers coupons, service reminders, and recall notifications automatically. Your customers can also use texting to schedule a service or pick up, receive invoices, and easy checkout. Having a simple two-way communication between you and your customers means more vehicles in your service lane and fewer missed appointments. 

Xtime

Bring your service lane online with Xtime and empower your customers to make appointments online, access text communication, track services, and complete an easy online checkout. They also provide solutions to help you recapture declined services and bring your customer back to your service department for those recommended services. 

AutoPoint

AutoPoint provides a service solution that helps your customers make appointments and easily approve or decline services in real-time. They also help your dealership process appointments, interact with customers and deliver inspection reports and recommendations digitally. 

Parts and Accessories

RevolutionParts

If you want to sell more parts, you need to be selling online. With RevolutionParts, you can easily sell auto parts through multiple digital channels, including your dealer site, a branded parts web store, Amazon, and eBay. Your parts catalog is readily available to online parts shoppers, including wholesale customers. 

And, whether you are new to eCommerce or have been selling online for a while, RevolutionParts offers full training and support to its customers. 

With fast Local Delivery, your local customers will have the “Amazon-like” experience they’ve come to expect–even when shopping on your dealer site and web store. This means they will be able to order their part and receive it in as little as an hour. This can help improve the customer experience so you can sell more parts and increase revenue. Parts departments using RevolutionParts see an average 27% increase in revenue, and an average of $8.75 for every dollar spent on digital marketing, which only costs $300 a month, plus 3% of sales.

SimplePart

SimplePart is an eCommerce platform that helps parts departments sell online and connect with DIY-ers. They will help your parts department set up a web store and add inventory to eBay for an additional fee. Dealers who use SimplePart see an average of $5.60 for every dollar they spend on online digital marketing, which costs $500 a month plus 15% of sales. They also offer training and support for an additional fee.

Insignia Group

If you want to sell more accessories online and improve the customer experience, Insignia Group provides an innovative way to do so. Their solution allows customers to virtually view accessories right on their vehicle. All the customer needs to do is select their vehicle model and the accessory they’re interested in and instantly see a preview of how it looks. This feature is available for online shoppers and on a kiosk right on your showroom floor.

Bottom Line

If you want to stay competitive as the world becomes more digital, you need to learn how to adapt. With new innovative digital dealership solutions, it is easier than ever to provide your customer with easy, convenient, and demanded alternatives to your physical storefront. 

Get started today by implementing digital solutions in your parts department and partnering with RevolutionParts. Schedule a demo today and see how easy it is to create your digital dealership.