revolutionparts, Author at RevolutionParts - Sell Parts and Accessories https://www.revolutionparts.com/author/revolutionparts/ Learn about leading platform that drives more OEM accessory and part sales. Tue, 06 Feb 2024 00:14:25 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.2 https://www.revolutionparts.com/wp-content/uploads/cropped-RP-FAV-32x32.png revolutionparts, Author at RevolutionParts - Sell Parts and Accessories https://www.revolutionparts.com/author/revolutionparts/ 32 32 Top 6 Benefits of Adding eCommerce to Your Parts Department https://www.revolutionparts.com/blog/parts-ecommerce-benefits/ Fri, 22 Dec 2023 09:00:39 +0000 https://www.revolutionparts.com/top-6-benefits-to-adding-a-parts-ecommerce-sales-channel/ The post Top 6 Benefits of Adding eCommerce to Your Parts Department appeared first on RevolutionParts - Sell Parts and Accessories.

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Adding online selling channels to your parts department is a great way to generate new revenue, which can go on to also benefit the entire dealership. This is one of the biggest reasons for selling online, but is it the only benefit?

As it turns out, there are MANY reasons why selling auto parts online is a great idea for dealerships aside from just driving more revenue. From eliminating obsolescence to increasing absorption rate, parts eCommerce can solve some of the everyday problems of the parts department.

Here are 6 ways your eCommerce can benefit the parts department, its staff, and the dealership.

#1: Meeting Customer Demand

eCommerce is the new norm for today’s consumers. The automotive industry has already taken steps to meet these buying behaviors. Customers demand it, and your dealership has an opportunity to meet those demands. If you want to increase revenue and keep customers coming back, you must provide them with the experience they want. 

Take a look at these valuable insights:

    • It’s estimated that around 230 million people browse and make purchases online in the U.S. (Statista)
    • 85% of consumers are using the internet to research auto replacement parts. (Auto Care Association)
    • 74% of online parts buyers use search engines when shopping for auto parts online, while 73% of them use auto parts retailer websites. (Hedges & Company)
    • Online auto parts and accessories market is expected to hit $67B by 2030. (Hedges & Company)

Auto parts eCommerce is continuing to see growth. If you’re not online yet, you’re losing customers to your competitors who are. Not only will meeting customer demand help you increase revenue, but not meeting it can lose your department business.

#2: Cultivate Vital Skills For the Future

The industry is shifting, and smart dealerships know that they need to adapt. More people are shopping online, and this trend is not likely to reverse. Every year, more and more people trade in-person shopping for online ordering. Auto parts are no different, meaning dealers that are not selling parts online will lose business.

For Parts Managers, experience in parts and accessories eCommerce can improve their professional lives. The right eCommerce experience can be used as leverage for getting a raise or even opening the door to new job opportunities.

#3: Save Customers At The Service Lane

How often do customers refuse recommended service at the service lane? Their car still needs that fix, so either they plan to take it to a different auto shop, or they’re going to buy the part online and make the repair in their own garage.

If they want to buy the part online, that’s a golden opportunity for your parts web store!

Even though the dealership lost the service sale, getting at least something out of that customer is better than nothing. If you let them know about your parts web store, then there’s a much higher chance they’ll buy from you online.

The more often that customer buys from you, whether it’s your parts website or your brick-and-mortar dealership, the more likely they will think of you first for all their automotive needs.

Building a relationship with the customer improves loyalty and will keep them shopping with you for years to come. For the parts department, this is key, as return parts buyers are one of the biggest sources of revenue, and it costs less to retarget them than it does to acquire a new customer.

#4: Eliminate Obsolescence

For some dealerships, obsolescence is a major drain on profitability and shelf space—by destroying those obsolete parts, you might as well be throwing dollars down the toilet.

 

But did you know that eCommerce can help you get rid of the obsolete inventory AND maximize your return on them?

 

Parts eCommerce lets you cast a wider net and find ready-to-buy customers who still need those obsolete parts for their vehicles. By selling on a standalone web store or through online marketplaces like eBay and Amazon, you can expand beyond your local customers to find someone who DOES want that dusty, obsolete part.

Furthermore, dealers selling parts online with RevolutionParts have an extra advantage when it comes to reducing obsolescence. The RevolutionParts Obsolescence Tool is designed to help dealers improve their inventory management by helping sell more obsolete parts online. It does this by allowing you to identify, tag, and configure custom pricing for obsolete inventory, then instantly list those parts across multiple selling channels—like eBay.

#5: Meet OEM Parts Sales Incentives

For a lot of auto groups, selling more parts means getting closer to parts-selling incentives. Volume sales make a huge difference in reaching those goals.

When selling parts online, volume is the name of the game and the best way to drive more revenue. Prices have to be competitive, but dealers still make a profit online through the sheer number of parts that they sell. When you focusing on the volume of parts you sell, you can end up making more of a profit than if you were focusing on those large margins.

#6: Improve Fixed Ops Absorption Rate

If your dealership is lucky enough to have reached a 100% absorption rate, then congratulations! But if you haven’t, selling parts online can help you move the needle in the right direction by bringing in more revenue for your dealership. 

Launching a parts website is easy and inexpensive when you partner with the right eCommerce solution. More sales flowing in from your eCommerce site will mean a busier parts department, but efficient back-end tools and automated manual tasks can take most of the work off your back.

In fact, we found that 80% of dealers using RevolutionParts haven’t had to hire additional staff yet to handle the extra orders from their parts website.

The average dealership with RevolutionParts generates about $30,000 a month in online parts and accessories sales. What kind of impact would that number have on your parts department?

Expand Your Parts Sales with eCommerce Solutions

Adding online selling channels to your parts department can help you increase revenue, improve operations, and lower obsolescence. If you want to learn more about how to modernize your parts department, download our free guide, “Creating a Digital Parts Department.”

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How Your Dealership Can Save Abandoned Shopping Carts with Email https://www.revolutionparts.com/blog/save-abandoned-sales-with-email/ Mon, 10 Jul 2023 09:00:08 +0000 https://www.revolutionparts.com/how-your-dealership-can-save-abandoned-shopping-carts-with-email/ The post How Your Dealership Can Save Abandoned Shopping Carts with Email appeared first on RevolutionParts - Sell Parts and Accessories.

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Studies show that nearly 90% of customers abandon shopping carts and don’t complete their purchases. This phenomenon isn’t exclusive to traditional eCommerce; it also occurs in car dealerships, both in the context of online parts sales and more broadly when potential customers express interest in a vehicle, request a quote, or begin the financing process, but do not follow through with a purchase or dealership visit.

While it might seem like these are lost sales, that’s not necessarily the case. A customer who has expressed interest but has not completed a purchase or who has left items in their online cart is not always a lost opportunity. In fact, setting up an email strategy to re-engage these customers can be an effective way to reclaim potential sales.

As more and more customers turn to the internet to research and shop for vehicles and parts, it’s easy for a dealership to lose potential sales to competitors. That’s why follow-up email campaigns and abandoned cart recovery strategies are an essential part of the sales cycle for modern dealerships. 

The question is, how do you set up a successful email campaign strategy to re-engage customers who have shown interest but have not yet made a purchase, or who have left items in their online cart?

Get Their Email

You can’t have an effective email campaign without anyone to email. Make sure the customer’s email address is saved automatically when they add parts to their online shopping cart, request a quote for a vehicle, or submit their contact information elsewhere on your site.

Often, you can request their email along with their billing address when they’re purchasing parts or requesting a quote. Just remember that most customers, especially first-time visitors, do not want to be forced to create an account. Most online shoppers will abandon their purchase if they need an account in order to continue. Give them options to “check out as a guest” or “save information for later.”

When you do ask for their email, ensure them that they will not be bothered by constant spam. Their email will only be used for order-related information or follow-ups on their expressed interest unless they choose to subscribe to a regular newsletter. You want to come across as a company they can trust. Constant emailing will automatically put you in their spam folder.

Act Fast

The majority of visitors to your website do intend to buy. Whether they’re adding parts to an online cart or expressing interest in a vehicle, most end up making a purchase elsewhere within 24 hours if they don’t complete the purchase on your site. This means you need to act fast. Timing matters. 

If they abandon their cart, send the first email in less than an hour. Studies have shown that abandoned cart recovery emails of this nature get a 45% open rate. Close to 11% of customers will make a final purchase. Not only does quick timing help decrease bounce rates, but it also represents great customer service.

Start Simple

You don’t need to worry about the more sophisticated details immediately. It’s best to start simple and test the waters before jumping into complicated, personalized, and automated emails. Even a simple email reminder can still be effective, whether it’s reminding a customer about the parts in their online cart or the vehicle they expressed interest in, and it’s better than having no communication at all.

Once you’ve got a simple template established, you can start using it to test and refine your strategy. From here, you can start looking for trends among your abandoned cart customers. You can fine-tune different types of abandoned cart emails to better serve their interests.

Set Up Your Campaign 

A standard three-part email campaign is a good building block. When setting up your email campaign, it’s important to adhere to a simple structure that you can refine through audience targeting. 

The first email should be sent that same day. List the parts they left in their online cart or the vehicle they expressed interest in, and ask if they need help completing the transaction. Do they need technical help? Are they confused? Do they have any questions about the parts or vehicle?

Encourage them to contact customer support for clarification. Make sure to include useful information, like a link back to their cart or the vehicle listing, your parts department’s or sales team’s contact information, and details relating to the part. 

The second email should be sent about 24 hours after the first one. Gently remind the customer that you are “holding” their items or that the vehicle they were interested in. Again, keep the information relevant, include contact details, and encourage communication.

During the second or third email, you can also remind the customer of any sales offers running at the time. For example, if your site offers free shipping on any order over $50 and your customer’s cart surpasses that, remind a customer that their order qualifies for free shipping. Or, if there are any special promotions or financing deals available for the vehicle they’re interested in, make sure to mention those.

The third email should be sent between five and seven days after the second email. This email is a “last chance” to claim their items or to take advantage of any special offers related to the vehicle they’re interested in. You can give a follow-up offer like a discount on large orders or free shipping (if not already offered), but you don’t want your customers to expect a discount before buying. This might be something you save for your most loyal customers.

This is the step in the process where you can experiment with your messaging. Determine what call to action resonates best with your customers. Identify good email subject lines and email copy that improves customer experience.

Track Your Metrics

It’s not enough to send out these emails and hope for the best. It’s essential to measure and track your results. Realize that some strategies will work better than others for certain customers, whether they’re abandoning carts or expressing interest without following through.  

Experiment with the timing of when emails are sent out. Maybe you’ll find that a third email within five days works better than seven days. Does it help if you include images? Does it help if you change the email subject line? How about offering a small discount in the second email and a larger one in the third?

Don’t be afraid to test different strategies based on this information. How many soft bounces occurred? Did certain email copy increase opens of specific campaigns? How large or small was your email list? Understanding your email marketing metrics will help you craft better campaigns in the future.

Don’t Lose Sales on Full Shopping Carts

Capturing customers that are ready to buy doesn’t have to be a challenge. Whether they’ve filled an online shopping cart with parts or expressed interest in a vehicle, with the right strategy in place, you can recover abandoned cart customers, turn them into repeat buyers, and boost your parts sales. 

Capturing their business is only half of the battle. Keeping them happy is the other half. How can you ensure that your customer satisfaction rate is at its peak performance? Get our free checklist to increase CSI scores in the dealership and streamline your customer service. 

csi checklist banner

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7 Profitable Reasons To Sell Auto Parts on eBay https://www.revolutionparts.com/blog/why-sell-auto-parts-on-ebay/ Thu, 06 Jul 2023 09:01:58 +0000 https://www.revolutionparts.com/6-profitable-reasons-to-sell-auto-parts-on-ebay/ The post 7 Profitable Reasons To Sell Auto Parts on eBay appeared first on RevolutionParts - Sell Parts and Accessories.

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It’s easy to sell auto parts on eBay. With only a few clicks (and with the right software), your entire parts inventory can be available to millions of searching and ready-to-buy customers around the world.

The automotive segment of eBay—eBay Motors—is booming. The industry is seeing rapid growth rates across the board, and the early adopters are taking the heft of the profits.

Is your dealership selling auto parts on eBay? If not, you should be. Here are the reasons why eBay might just be a total game-changer for your dealership.

 

1. Sell Auto Parts on eBay Motors

Over the years, the demand for auto parts on eBay is through the roof. The way eBay is set up, it’s so easy for customers to search auto parts and comparison-shop for the best price all in one place.

To better fit the demand for vehicles and parts, eBay has a specialty site called eBay Motors, that focuses on providing the things automotive shoppers need, like research and security. In translation, it’s the ideal place to sell parts.

Shoppers can purchase entire vehicles through eBay Motors, but buying and selling auto parts and accessories is just as popular. Especially because sellers can provide part fitment info on their listings!

According to a study by UPS, automotive customers are less likely to return their purchased parts than products purchased in other industries. They do their research and care about ordering the right part on their first try.

 

Impressive eBay Marketplace Stats

 

Eliminate Parts Obsolescence

Additionally, eBay Motors is an ideal place to sell used car parts, and clear out old inventory. It may even eliminate obsolescence in your parts department completely!

Consumers looking for phased-out parts and accessories generally know they’ll have difficulty finding them at a brick-and-mortar store, so they know turning to online marketplaces is their best option. Not only are eBay customers ready to buy, but they’re actively looking for the obsolete parts you may have stashed away behind your parts counter!

 

2. Sell Auto Parts to a Large Audience

A channel like eBay gives you a broader scope than you’d have by selling alone. eBay has a large marketing budget to help attract potential shoppers, and you can capitalize on this traffic.

Some eBay marketing tools are available for you to use, free of charge! For example, you can run promotions on eBay to discount your auto parts and draw in even more customers.

Millions of people visit eBay regularly, so you have a customer base already waiting for you. These customers are searching for auto parts and are eager to buy!

 

International Audience

With eBay, you’re not limited to selling in the United States—you can extend your reach around the globe.

Their Global Shipping Program will handle all the details of international shipping, so you don’t have to worry about it. We’ll talk more about this in a bit.

 

Springboard for Dealership Growth

There’s no reason to keep that audience restricted to eBay!

Use it as a platform to promote your dealership and get your name out to the world. After shoppers have made a purchase you can send a follow-up email to redirect them to your standalone parts web store.

Customers who enjoyed their experience may buy auto parts directly from your web store in the future.

 

3. Sell MORE Auto Parts With Consumer Trust and Confidence

Customers don’t recognize your business? No problem. After so many years on the Internet, shoppers trust eBay—and because of that, those potential customers trust you.

eBay is a marketplace that they have confidence in, but they also know eBay will mediate issues between you and a shopper.

You can boost this trust level even further by gaining Top Seller Status.

Top Seller Status comes with a ton of great benefits (i.e., cheaper shipping, and discounts on fees). It also marks your store with a badge so customers know right away that you’re a trustworthy seller.

It’s one of the easiest ways to improve your visibility on eBay.

RevolutionParts is always striving to make selling parts on eBay Motors as easy as possible, so you can sell more auto parts with less time and effort.

As mentioned before, eBay Motors has great tools to help customers find the part they’re looking for. Your listing can include part fitment information to boost customer confidence, which in turn boosts sales (and reduces returns).

You’re not required to provide auto part compatibility information, but it will help you succeed. Read more about the FAQs of part compatibility on eBay Motors to find out more.

4. Sell Auto Parts Safely With Seller Protection

Just as eBay shoppers don’t have to worry about dishonest businesses, you don’t have to worry about dishonest customers.

Dealerships with the Seller Protection Program can be insured against unpaid items, empty box “returns,” and unfair seller performance evaluations.

Their system has a way of detecting suspicious behavior with customers and sellers. Say, for example, that a customer has a history of reporting issues with their purchases. The system can then go in and try to detect an issue.

If an issue is found, then the Seller Protection Team can also investigate, so it’s not just a computer deciding your fate.

eBay takes steps to protect your reputation so that you can sell with confidence!

 

5. Sell Auto Parts Online With Lower Fees

Any marketplace you sell through is going to have fees, but eBay’s costs are lower than what you’ll find on Amazon.

If you partner with the right eCommerce solution provider, then insertion fees are waived completely. Talk with your eCommerce solution to see if they can help you out (Hint: RevolutionParts can definitely help!).

By the way, with the RevolutionParts eBay solution, certain fees (like insertion fees) are waived completely!

 

6. Sell Auto Parts Internationally Without Added Costs

Thanks to eBay’s Global Shipping Program, selling auto parts overseas is easier than ever!

As long as you comply with some eligibility rules, eBay’s international shipping experts will manage the overseas shipping and customs process for you.

Sound too good to be true? It’s really that easy. All you need to do is ship the part to eBay’s U.S. shipping center, and eBay will handle it from there.

RELATED: 8 Tricks to Avoid Overpaying for Shipping

With the Global Shipping Program, you qualify for 5-star protection for shipping and handling ratings—meaning customer ratings below 5 stars for shipping charges or shipping time won’t count against your seller performance standards.

In fact, if any of your negative or neutral feedback is caused by the Global Shipping Program, that feedback will be removed.

 

7. Sell and Ship Oversized Items At No Additional Cost

Oversized and heavier items, like engines, aren’t usually seen as big-ticket sales items in the eCommerce world, but they can be with eBay. Did you know that engines are one of the top-selling items on eBay Motors? Dealers are taking advantage of this trend and RevolutionParts can provide even more assistance!

RevolutionParts can help you sell oversized items at no additional cost to you. If you already sell through eBay, then you can choose to enable listing heavy and oversized items. If you’re just signing up for eBay with RevolutionParts, listing heavy items will automatically be enabled for you.

With the help of eBay’s flat rate shipping features, you’ll be able to sell oversized items with free shipping., which will help you attract more customers.

 

Conclusion

eBay Motors is a great way to boost revenue for your dealership, and it’s something you can easily manage side-by-side with your existing online parts store. It’s another avenue for sales, and sales are the name of the game.

Aftermarket sellers dominate eBay at the moment, but that’s no reason to give up those sales—it just means there’s a bigger opportunity for OEM sellers to take over.

eBay can be a competitive market, but as long as you avoid some of the common mistakes that new sellers make on eBay Motors, it won’t keep you from making a profit.

So what are you waiting for?

See a demo of the RevolutionParts eBay solution to start growing auto part & accessory sales on eBay for your dealership.

 

Start Selling Parts on Amazon & eBay Today

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7 Ways To Find Out What Customers Are Saying About Your Dealership https://www.revolutionparts.com/blog/what-customers-are-saying-about-your-dealership/ Sat, 01 Jul 2023 09:00:29 +0000 https://www.revolutionparts.com/?p=32646 The post 7 Ways To Find Out What Customers Are Saying About Your Dealership appeared first on RevolutionParts - Sell Parts and Accessories.

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Marketing your dealership is fast-paced. You don’t have time, money, or effort to continually learn the latest marketing trends and put them into action.

We often forget to stop and listen to what our customers are truly saying because we’re too strapped for time.

Here are some tools other car dealerships use to track their customers’ wants and needs.

We know that what works for the dealership down the street won’t always work for you, so here are 7 ways to listen to your customers.

You decide which might be right for your dealership.

 

1. Set Google Alerts for trending topics and industry stats

Knowing what your shoppers think is huge, of course, but ideally, you’ll know what they want BEFORE they have to tell you.

That means taking a proactive approach. Watch out for upcoming industry trends and keep up-to-date on the latest technology.

One HUGE trend you don’t want to miss: Buying parts online.

If you’re listening to customers at the service and parts counters, you’ll see that they want to buy OEM parts and accessories online.

    • eCommerce for parts & accessories is predicted to hit $22 BILLION by the end of the year. (Source: Hedges & Company)

These stats prove people are searching for AND buying parts online. Your dealership customers increasingly want to buy parts OEM online without going to the aftermarket.

The problem is that most dealership websites don’t have the option to buy the part online, or it’s a poor experience to find the right part you need.

That’s where RevolutionParts comes in!

We deliver great shopping experiences for your customers. We also make selling online easy and profitable for the parts department.

Just fulfill orders and collect payment from searching and ready-to-buy shoppers!

 

2. Install behavior-tracking software on your website

This might sound intimidating, but it’s actually an easy and fun way to visually see what your customers care about on your website.

Software like HotJar and other heatmap-tracking options are a fantastic way to see what your customers care about.

These tools can see where customers are clicking, where they’re getting stuck, and which parts of the page interest them the most.

Even without written feedback, this can provide valuable feedback on how to move things around and help direct shoppers toward making a purchase.

We won’t spend a lot of time comparing the options, but here are a few you can try:

Typically, you’ll just have to paste a snippet of code into your site.

RevolutionParts let you add code to the site header/footers, so it’s an easy add for your auto parts web store!

 

3. Allow website testimonials and product reviews

Why not provide a place for shoppers to leave their feedback? If you can allow customer feedback on your very own website, do it!

Customers will feel like their feedback is valued, you get to hear their thoughts, and other shoppers will see you as more reputable.

This is where RevolutionParts clients really have it easy!

Web Stores with RevolutionParts have a testimonial feature that’s as easy as clicking “on.” Then voila – shoppers can share their experience!

We also have a partnership with Yotpo, the #1 review software on the market. With the integration, shoppers can leave product reviews.

It’s GREAT for accessories, especially since these reviews can convince other shoppers to buy.

 

4. Send out a customer satisfaction survey

Sometimes, you just have to ask.

Send out a feedback survey! To encourage shoppers to participate, you can offer an incentive.

The incentive doesn’t have to cost you much, either. Participants can be entered into a monthly drawing or receive a discount on their next order.

When you write the feedback survey, keep the questions simple. It’s always better to offer multiple-choice or drop-down menu options.

Open-ended text boxes are more work, so shoppers are less likely to answer.

Again, you have a lot of choices. Here’s somewhere to start:

 

5. Check dealership review sites

You probably already know this one, like the back of your hand. We’re going to include it anyway, just for the completionists’ sake.

It’s worth it to keep an eye on as many review sites as possible.

Shoppers aren’t going to take the time to leave their reviews everywhere — they’ll probably take the “one and done” approach.

Some of your options:

 

6. Check your social media page

This is just one place online where customers come right to you! Are you checking for new comments and direct messages on a regular basis?

You’re thinking, how can I manage another channel when I’m already pressed for time? We get it; you have a LOT on your plate.

So it makes sense if you can’t check Facebook, Twitter, and others as often as you’d like to.

But it’s such an important feedback tool!

Many shoppers use social media to get in touch with the businesses they interact with since it’s more of a public, casual forum compared to a direct email.

With a tool like Hootsuite, you can connect all your accounts to one place, so it’s easier to stay on track with everything.

 

7. Check social media tags or mentions

Instead of commenting on your page, some people will complain on their own page. Sometimes they’ll tag your dealership, but other times they won’t.

It can take a little more digging to find comments like these, but since they’re left on the customer’s personal page, you may find that they’re more honest about the experience.

Most social media platforms will have a search option. Simply search the name of your dealership and see what comes up.

You can also try searching abbreviations or short versions of your name since not all customers will want to type out the full dealership title.

 

Bottom Line

The fast-paced nature of marketing your dealership doesn’t have to mean missing out on understanding your customers’ needs.

By leveraging tools like Google Alerts, behavior-tracking software, customer testimonials, satisfaction surveys, dealership review sites, and social media, you can stay attuned to your customers’ wants and needs.

Remember, each dealership is unique, and what works for one may not work for another.

Therefore, choosing the tools and strategies that best align with your dealership’s goals and customer base is crucial.

The key to successful marketing is not just speaking but listening.

By tuning into your customers, you can create marketing strategies that truly resonate with them and drive your dealership’s growth.

So, take a moment to listen – your customers are speaking, and what they have to say could transform your dealership.

Ready to dive into some more marketing tactics? Download our Marketing Toolkit below to discover how to improve marketing in your parts department.

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6 Key Insights on the Divide Between Online and In-Store Parts Shoppers https://www.revolutionparts.com/blog/similarities-and-differences-between-online-and-in-store-shoppers/ Wed, 26 Apr 2023 11:17:41 +0000 https://www.revolutionparts.com/the-3-key-similarities-and-differences-between-online-and-in-store-auto-parts-shoppers/ The post 6 Key Insights on the Divide Between Online and In-Store Parts Shoppers appeared first on RevolutionParts - Sell Parts and Accessories.

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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:

sample pricing matrix for parts managers

#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

Leverage Online Reviews and Testimonials

Online reviews and testimonials can be especially helpful (or damaging!) to your store’s success.

On a marketplace like eBay Motors, it’s easy for customers to share their experience buying from you. Good reviews are invaluable, and bad reviews won’t be ignored. These customers will read through other people’s experiences to get an idea of whether or not they want to buy from you.

You can also get testimonials to your store’s Facebook page or directly on your parts website (At least, for RevolutionParts customers! We have a built-in testimonial feature for your web store).

Make Your Contact Information Easily Accessible

When a customer isn’t sure about which part they need, they might ask for help, and if you want them to buy their parts from you, it’s in your best interests to offer that help.

Including contact information will help your dealership twofold. It not only encourages customers to buy but also reduces returns. A parts professional like you can take the guesswork out of shopping for parts & accessories and ensure your customer buys the right part the first time.

Many dealerships hesitate to share a phone number or email address with their online shoppers. They’re either afraid of being overwhelmed with calls and emails, or they’re worried that local customers will find the parts website and be upset about the lower online prices. 

Provide a Solid Return Policy

Online customers are also more likely to research your return policy before making a purchase.

Make sure any return policy or warranty information is easy to find so you can save them some trouble and get on their good side right away. Customers don’t appreciate it when you try to hide important information.

While you’re at it, create good shipping and cancellation policies, too! Be upfront about your policies and use them to protect yourself (and your customer).

Here are some resources:

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.

The post 6 Key Insights on the Divide Between Online and In-Store Parts Shoppers appeared first on RevolutionParts - Sell Parts and Accessories.

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How to Ship Hazmat Auto Parts in 4 Easy Steps https://www.revolutionparts.com/blog/how-to-ship-hazmat-auto-parts/ Tue, 28 Mar 2023 09:00:48 +0000 https://www.revolutionparts.com/how-to-ship-hazmat-auto-parts-in-4-easy-steps/ The post How to Ship Hazmat Auto Parts in 4 Easy Steps appeared first on RevolutionParts - Sell Parts and Accessories.

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Certain car parts, such as batteries, airbags, and seatbelt pretensioners need to be shipped with special care in order to ensure that they arrive safely—they require something called “hazmat shipping.”

Hazmat shipping is not something your dealership should take lightly. If you fail to meet hazmat standards, you could face serious financial and legal risks, not to mention putting someone’s health at stake. It’s your responsibility to inform your customers and ship these items properly.

That said, it’s no surprise that many dealerships choose to avoid selling these parts online completely to avoid extra complications. However, there are customers looking to buy these parts online, which means you can still drive major revenue from them if you don’t mind dealing with an extra step.

Step #1. Get Certified

Without the proper certification, your dealership could be fined up to $75,000! Even minor errors in your paperwork or packaging can delay shipments and upset your customers (not to mention that mistakes could cause public safety issues).

Before you start shipping hazmat items, you need to go through special training with your shipping carrier. You can attend a public seminar or arrange for an in-house seminar, depending on what your carrier offers.

The seminar will cover all the information you’ll need to know about paperwork, packing materials, labels, and more. You are required to have this certification renewed every three years.

FedEx’s guide for how to ship hazardous materials is the most straightforward and can give you a basic idea of the steps. You can read more about UPS’s rules for hazmat shipping here and USPS shipping standards here.

Don’t be afraid to talk with your shipping carrier before you start fulfilling online parts orders if you forgot something covered during the seminar. Not adhering to these rules can lead to huge fines and legal trouble for your dealership, so calling your shipping provider is a good way to ensure you don’t miss any steps.

Step #2. Set Your Pricing Strategy

    There’s an added cost for hazmat shipping. Each carrier will have different fees for different types of hazmat items. You can decide how much of this fee to pass on to your customers and how much you’ll pay yourself.

    Remember, a lower price will attract more customers, so you will want to take this into consideration when pricing your part. At the same time, waiving the fee altogether will cut into your profits. 

    Test different pricing options to see what sells best. Once you’ve found the sweet spot for corresponding hazmat items, you can better structure your pricing model moving forward.

    Step #3. Be Upfront with Your Customers

    Hazmat shipping is not necessary for in-store shopping, so many customers won’t understand why they have to pay an extra charge—especially something as hefty as a $40 fee. This might make you hesitant to tell your customers and instead bake it into the normal shipping price.

    Hiding the fee isn’t the answer. Be open with your customers and inform them why hazmat shipping is necessary. Once they see the potential risks of unprotected shipping for hazardous items, they’ll appreciate your commitment to safety.

    Step #4. Work With Your eCommerce Provider

    Dealerships using RevolutionParts don’t have to worry. We’ve marked all the hazmat items in your catalog so you know what they are. All you have to do is go to the “Product” tab at the top of your RevolutionParts dashboard and then click on “HAZMAT.”

    If your eCommerce provider doesn’t flag hazmat parts, you run the risk of shipping a hazmat item in normal packaging, which puts your dealership at legal risk. Familiarize yourself with which auto parts are considered hazardous materials so you aren’t caught off guard.

    Common Hazmat Items Found In Vehicles

    • Engines
    • Batteries
    • Air bags and air curtains
    • Seatbelt pretensioners
    • Shocks and struts
    • Paint, adhesives, and sealants
    • Gasoline/Fuel
    • Fuel system components
    • Stay dampers
    • Speakers
    • Brake Accumulators
    • BR-134A Refrigerant

    9 Classes of Hazmat Materials

    ​​Determine the correct classification of the hazardous material you are shipping. Hazmat materials are classified into different categories based on their properties, and each category has specific shipping requirements. Below are the 9 classifications of hazmat materials.

    Bottom Line

    Your shipping provider may be able to provide relevant information specific to auto parts during your required certification training, so don’t hesitate to ask.

    Safety comes first, but it shouldn’t put limits on your profitability. With the right knowledge, proper communication, and an eCommerce provider you can count on, hazmat shipping can be a selling point of security that your customers can count on.

    Whether you are shipping hazmat parts or non-hazardous parts, you can implement strategies that will allow you to profit from shipping. Download the free guide, How to Profit Off Shipping OEM Parts, to learn more ways you can turn a profit from a high-quality shipping and fulfillment strategy.

    The post How to Ship Hazmat Auto Parts in 4 Easy Steps appeared first on RevolutionParts - Sell Parts and Accessories.

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    How to Sell Car Parts at the Dealership: 6 Expert Tips https://www.revolutionparts.com/blog/grow-parts-department-sales/ Sat, 04 Feb 2023 08:00:34 +0000 https://www.revolutionparts.com/6-expert-tips-to-grow-parts-department-sales-at-the-dealership/ The post How to Sell Car Parts at the Dealership: 6 Expert Tips appeared first on RevolutionParts - Sell Parts and Accessories.

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    Parts departments are filled with EXPERTS on auto parts but many may have little sales experience.

    This can make it difficult to grow parts department sales revenue.

    Sound familiar?

    Your parts team might not be tapping into its full potential.

    There are many tricks and tips the experts use that your team can implement to grow parts department sales and squeeze more profit into the dealership each month.

    Here are 6 expert tips that will help you sell car parts at your dealership.

    1. Prioritize Customer Service and Communication

    Nowadays, your customers have access to a lot of information. There’s a good chance they’ve researched the parts they need online before coming to your dealership.

    Creating a personalized connection with your customers goes a long way in building customer loyalty.

    This, in turn, increases the chances that they’ll come back to shop with you next time!

    Establish your dealership as a trustworthy and credible source of information on everything they need to know about cars.

    If you’re feeling ambitious and really want to go the extra mile, start up an auto blog they can refer to for installation guides and other automotive topics.

    2. Review Your Auto Parts Pricing Strategy

    Instead of applying the same pricing across the board, try breaking down your inventory into smaller categories and repricing them accordingly.

    There are a lot of ways you could break your inventory down, you can break them down by:

    • Popularity of the part
    • Price of the part
    • Parts vs accessories vs. performance parts
    • Transportation and handling costs
    • Front­ counter vs. back counter customers

    For something small and inexpensive, like nuts, bolts, and screws, apply a larger pricing margin. Instead of selling at MSRP, which might only be around 15-20 cents, you can easily set up a matrix that marks it up to around $1.

    For online sales, setting different margin pricing across your inventory is absolutely essential.

    Without a pricing matrix, you often end up overcharging for expensive parts and undercharging for cheap parts.

    This will either scare away potential shoppers or cause you to sell parts at a loss.

    Price parts accordingly and pay attention to where you need to change your pricing structure.

    3. Improve Your Stocking Practices

    The best way to improve your parts sales is to always have the products customers need readily on hand. If you don’t have it, you can’t sell it!

    Listen to customers and monitor your sales.

    What sells the most? What sells the least?

    If you know you can sell a LOT of something, you might even be able to order a larger pallet and qualify for a better bulk order discount.

    Differentiate between what you sell from inventory and what you order specifically for a customer.

    This kind of classification will improve inventory management and help you make better stocking decisions.

    You can also use your inventory to compare what parts customers are buying from other dealers and include them in your future inventory.

    Data-based decisions will lessen the risk of overstocking or understocking parts and accessories.

    You can also try stocking fun novelty items! Shoppers are always attracted to fun items from their favorite car brands, so use this to your advantage.

    Aside from auto parts, try selling things like:

    • Hats
    • T-shirts
    • Water bottles
    • Keychains
    • Backpacks/Laptop bags
    • License plate frames

    Since auto parts are not always the most attractive items to put on display, use these items to liven up your counter.

    4. Launch an Online Sales Channel for Auto Parts and Accessories

    The online automotive parts market is expected to reach $22B in sales by 2023, and you don’t want to miss out on the opportunities!

    The internet exposes you to new national and global markets at a fraction of the cost.

    Launching your own parts website adds a valuable new channel for the parts department and can generate tens of thousands of dollars each month in sales.

    Marketplaces like eBay Motors and Amazon grow larger every year… so why not sell auto parts there, too?

    Solutions like RevolutionParts make it easier than ever to plug in and start selling, so don’t worry about being “technical” enough to grow parts department sales using the internet.

    5. Eliminate Obsolete Auto Parts

    Obsolete parts tie up money and warehouse space that you could otherwise invest in fast-moving parts.

    While it’s nearly impossible to get rid of obsolete auto parts by just selling them at the counter, we have a few tricks you can use to keep them at a minimum.

    Special-Order Deposit

    Ask special-order customers to make a deposit, and communicate clearly that you will return the auto part to the manufacturer if it is not collected within a specific timeframe.

    Review Reports

    Analyze your inventory reports to identify fast-moving parts that are not selling as much or slow-moving parts that are picking up to balance your inventory.

    Sell to Other Dealers

    Alert other dealerships in your auto group of the parts you have on hand to make sure they don’t order a new part you already have, or offer it at a discount.

    The trick is to check for obsolete parts on a regular basis and analyze your inventory to avoid overstocking on parts that may soon become obsolete.

    Sell Obsolete Parts Online

    The internet is a great place to get rid of your obsolete auto parts.

    It may be unlikely that a shopper in your local area will be looking for that part, but you might be able to find a buyer when you sell online and tap into a national market.

    Auto part shoppers often know that obsolete parts will be tricky to find, so online marketplaces like eBay Motors are one of the first places they’ll look to buy from.

    When you offer these parts on eBay or a standalone parts website, you can still make a sale instead of tossing the part and throwing that money down the drain.

    6. Try Parts Marketing 

    Ultimately, these strategies only work if people know you have auto parts and accessories for sale!

    If you have an internal marketing department, they should be helping you with a marketing strategy specifically dedicated to the parts department.

    However, that’s not an option for many dealerships.

    There are plenty of easy DIY marketing tricks you can use to help drive more parts department sales.

    Use online marketing tools to your advantage.

    Email marketing, digital advertising, social media, and many more digital marketing tools can help your parts department grow its revenue. 

    Understandably, not all parts departments have the time to do their own marketing, nor do they have the internal support or expertise to market parts.

    In this case, they may read out to outside marketing agencies.

    Wherever you choose to do your marketing, you want to be sure they specialize in marketing parts if you want to see a high return on investment.

    For example, dealers using RevolutionParts Marketing Services see an average return of $8.75 for every dollar spent on advertising.

    pie chart of how parts departments market

    Conclusion

    If you want to grow parts department sales, it requires deliberate effort and innovation from the team.

    These tips are a great place to start, but you can always find new ways to improve!

    While there are many strategies you can employ, leverage your creativity as a team to come up with the best sales plan.

    Take risks, utilize online platforms, and always place the customers’ needs at the center of your decisions.

    If you want to learn more about how you can increase parts department revenue by selling OEM parts online, download our free guide to learn the 8 Keys to Success.

    The post How to Sell Car Parts at the Dealership: 6 Expert Tips appeared first on RevolutionParts - Sell Parts and Accessories.

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    11 Creative Shipping Tricks That Will WOW Your Customers https://www.revolutionparts.com/blog/creative-shipping-tricks/ Mon, 15 Aug 2022 08:01:48 +0000 https://www.revolutionparts.com/11-creative-shipping-tricks-that-will-wow-your-customers/ The post 11 Creative Shipping Tricks That Will WOW Your Customers appeared first on RevolutionParts - Sell Parts and Accessories.

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    Success! A customer visited your parts website, liked what they saw, and made a purchase. You’ll soon fulfill their order, package it, and ship it out. All that’s left is to hope they’re happy enough to shop with you the next time they need to buy.

    But will they even remember you or your brand? By adding a little flare to your packaging, you can remind customers about your parts website when their ordered part arrives on their doorstep.

    Does it actually work, though? Look at some of these stats surrounding how important your packaging is:

    • 72% of Americans claim that product packaging influences their buying decisions. (IPSOS)
    • Sellers who use premier or branded packing see 30% of their customers return to make another purchase. (Dotcom Distribution)

    Introduce Your Brand

    Isn’t the entire end goal about helping customers remember your brand? The straightforward and professional approach to this is to do just that—show off your parts website.

    #1. Business cards – Do you have business cards for your parts website? This is one of the easiest things you can do to show your customer that there’s a person behind the computer screen. It also makes it easy for them to contact you in case they have questions or concerns and, as a result, helps you build trust with your customers. You can even write something personal like “thank you!” or “Questions? Call me!” on the back of the card.

    #2. Professional packing slip – It’s standard to include a packing slip with your shipments, and 63% of people want one. Instead of a plain version with barebones order details, you can create a version with your logo in the corner. By the way, shipping is really easy to do if you have shipping management software like the USPS shipping feature on the RevolutionParts platform. It gives your parts website some authority as a professional parts seller.

    Slip in a Little Gift

    What’s more exciting than free things? Your customers will remember the thrill of excitement when they realize they’d gotten a little freebie. Of course, this can add cost to your sale, so you must be careful about implementing your strategy.

    #3. A coupon – How about a promo code for a discount on their next order? We all know that customers like saving money, and 37% of people say they would like to see a coupon included in their package. Including a discount encourages them to shop with you again next time. Click here to get some coupon ideas!

    #4. Something small – Perhaps you want to try tossing something small, like a pen or bumper sticker, into each shipment. You can order these things in bulk for fairly cheap but can remind customers about their purchase. They may just think about your parts website every time they use that pen! It’s a fantastic way to stay at the forefront of their mind.

    #5. Something special – You can reward customers with something a little more substantial for high-value orders. How about a T-shirt or license plate frame? This can also encourage a word-of-mouth promotion if your customer wears that T-shirt around… which can be a powerful way to let others know that you’re online and ready to sell them the parts they need.

    WOW Them With The Packaging

    How about making an impression before they even open the box? Even though the customer has already completed a purchase with you, the arrival of their package cements the deal and leaves a final impression on them.

    #6. Professional shipping label – Similar to a nice-looking packing slip, you can also make your label stand out. It doesn’t have to be anything extreme. Something as straightforward as your logo can add a nice touch. Again, this is easy to set up when you have shipping management software like ShipStation or ShipRush.

    #7. Slap on a sticker – Spice up that plain brown box with a splash of color. You can order stickers with your logo for fairly cheap. They’re fast to apply, so you don’t need to worry about adding time to your shipping process, but they’re an easy and effective way to stand out. Check out Uline.com to see some options.

    #8. Colored tape – How often have you ordered from Amazon.com? If you’ve noticed, they get fancy with the tape and don’t just use a standard packaging tape. It’s their way of instantly standing out from other types of packaging. While you don’t need to go as far as custom-branded tape, there are plenty of places to buy colored tape (again, like Uline), at least. Tape your packages with your brand colors, or change it up to match the season. (Like red/white/blue for the 4th of July and red/green for Christmas).

    #9. Custom-designed box – Although it can be a pricier option, you can order custom-branded boxes to make your shipment instantly recognizable. You can always use custom boxes for high-order shipments but stick to standard packaging when a customer is only spending a few dollars.

    Add a Touch of Personality

    #10. “Thank you!” – A handwritten note adds a special touch to your packaging. Customers see you as a human being who took the time to write out a note. Whether you write it on a business card, on the packing slip, or straight on the box itself, a quick “thanks!” can bring a smile to your customer’s face.

    #11. A short note – How about adding an additional slip of paper with a special thank you to your customer? This doesn’t have to be handwritten, and you don’t have to create a new one each time. Type it up once, print out a stack, and add one to the box along with the packing slip. Just write a few sentences thanking the customer for choosing you, inviting them to contact you with questions or give some feedback about their experience.

    Bottom Line

    Customer loyalty and repeat customers can hugely influence your business’s success, so this is an easy way to remind customers that it was YOU who sold them that part. It was YOU who gave them a smooth and enjoyable customer experience.

    Of course, many of these options involve a little cost, whether money or time. But loyal and repeat customers can become the core of your customer base and a reliable source for sales.

    You can also make a profit by shipping OEM parts. Download our free guide How to Profit Off of Shipping OEM Parts to learn how!

    The post 11 Creative Shipping Tricks That Will WOW Your Customers appeared first on RevolutionParts - Sell Parts and Accessories.

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    The Top 3 Items That Can Drive Accessory Purchases https://www.revolutionparts.com/blog/the-top-3-items-that-can-drive-accessory-purchases/ Fri, 05 Oct 2018 10:00:05 +0000 https://www.revolutionparts.com/?p=39088 Now, more than ever, there is an urgency for new car dealerships to do three things: Save more money Make more money Explore new revenue streams How do these dealerships accomplish these goals? One of the ways is through the accessories market. The market is bigger than ever, but dealerships aren’t taking full advantage of […]

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    Now, more than ever, there is an urgency for new car dealerships to do three things:

    • Save more money
    • Make more money
    • Explore new revenue streams

    How do these dealerships accomplish these goals? One of the ways is through the accessories market. The market is bigger than ever, but dealerships aren’t taking full advantage of it. Profit margins on accessories sales routinely approach 50%, and the market generates an average of 40 billion dollars a year.

    Given these stats, it’s surprising that only about 5% of customers buy add-on accessories from the dealership where they purchased their vehicle.

    Knowing how to increase sales of accessories in your dealership doesn’t have to be difficult. It can be broken down into three key points:

    1. Awareness

    New car customers are payment driven, which means they may have to go with a base model vehicle instead of choosing the upgraded version with all the bells and whistles.  Making customers aware of what they are able to add-on after the purchase of the vehicle is important for the future. Having a conversation will allow them to bookmark your dealership for when they’re ready to make upgrades and personalize their vehicle further

    2. Timing

    Knowing when to talk about accessories is important. This discussion often occurs as an afterthought since a dealership’s first priority is to sell a car. Once the customer commits to buying a vehicle, they are directed to a financial advisor, where additional upgrades can be sold. Of course, when a car is delivered or ready for pickup, you can present a coupon or voucher that will give them a discount and direct them to your 24/7 online parts and accessories store

    3. Process

    Installing accessories more quickly and efficiently can help improve the process and help you retain customers in the process. Labor install times should be competitive and you should have some accessories prominently displayed on vehicles on the showroom floor. It also helps to have a dedicated parts website that feature the complete line of OEM approved accessories to choose from so consumers can find exactly what they’re looking for if you don’t have it in stock.

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    New Sales Tax Rules for Remote Sellers https://www.revolutionparts.com/press-release/new-sales-tax-rules-for-remote-sellers-2/ Mon, 01 Oct 2018 16:00:31 +0000 https://www.revolutionparts.com/?p=39067 South Dakota v. Wayfair, Inc. In the long-standing debate over eCommerce sales tax, South Dakota v. Wayfair, Inc., the Supreme Court has ruled in favor of South Dakota.   What does this mean, exactly?   In simple terms, it means that South Dakota can require a seller to impose sales tax on purchases made by […]

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    South Dakota v. Wayfair, Inc.

    In the long-standing debate over eCommerce sales tax, South Dakota v. Wayfair, Inc., the Supreme Court has ruled in favor of South Dakota.

     

    What does this mean, exactly?

     

    In simple terms, it means that South Dakota can require a seller to impose sales tax on purchases made by South Dakota residents, even if the seller has no physical presence in the state.

    Before the ruling, there would need to be a physical connection between an out-of-state company and the state before a taxing jurisdiction could require the company to collect or remit sales tax. The connection is known as an economic nexus.

    With the ruling, the economic nexus no longer requires a physical presence in a state, but is based on transaction volume, sales revenue, or a combination of the two.

    While South Dakota was the first to get permission from the court, there will be several other states jumping on board with the nexus rules. You can see a detailed map and additional statistics here.

    As far as knowing if you would need to follow the nexus rules for sales tax in South Dakota, reviewing your sales transactions carefully is a must. As a remote seller, you must:

    • Have $100,000 in sales of tangible personal property, electronically transferred products, or services delivered into the state or
    • 200 separate transactions of the same delivered into South Dakota in the current or previous calendar year.

    One thing to note is that the requirements placed on the South Dakota Supreme Court will take weeks to complete, meaning there will be no immediate collection enforcement.

    While collecting sales tax will not be immediate, CFOs, controllers, and tax directors should look at systems to figure out what they will need to do to collect sales tax on internet sales. It’s good to be prepared for when the enforcement in South Dakota (and likely other states) occurs.

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