The Essential Guide to Aftermarket Car Parts

Aftermarket car parts constitute a major segment of the automotive industry, accounting for approximately 20% of the total industry revenue. Motorists seeking to replace or enhance their vehicle's components can opt for parts manufactured by original equipment manufacturers (OEMs), third-party manufacturers, or even used components. Specifically, aftermarket car parts are those produced by third-party manufacturers, representing entities other than the vehicle's original producer. These parts are also referred to as generic, non-OEM, or competitive replacement parts.

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It is noteworthy that there are over 230.5 million licensed drivers in the United States, with an average vehicle age on the roads of around 11.8 years. Consequently, the automotive aftermarket industry is valued at approximately $381 billion, with $282 billion dedicated solely to light-duty vehicles. Moreover, the personal expenditure on auto parts in June reached a staggering high of $50.5 billion.

In light of the ongoing COVID-19 pandemic, the prevalence of DIY automotive projects has surged, leading to an increase in online purchases of auto parts. In fact, it is projected that the North American auto parts eCommerce sector will exceed $20 billion. Historically, the eCommerce aftermarket sector was growing at a rate of 3.5% to 3.9% annually, but due to the implications of the pandemic, this growth is expected to accelerate even further.

The digital landscape has significantly impacted the automotive aftermarket industry, with around $140 billion worth of parts, components, tools, and services sold across various channels—including brick-and-mortar retailers and service shops—being influenced by this digital shift. By 2027, this influence is anticipated to increase to over $168 billion.

When addressing car repairs, some insurance companies permit the use of aftermarket parts as a replacement for OEM components. However, many vehicle owners may have reservations due to the fact that these components are not produced by the original manufacturer. Nonetheless, there is much to learn about the benefits and considerations of these third-party components and accessories. This guide aims to provide automotive parts business owners with essential insights.

The Advantages of Aftermarket vs. OEM Car Parts

The discussion surrounding aftermarket parts and accessories has generated considerable debate among automotive enthusiasts. Many individuals express concerns regarding whether aftermarket components are as safe, reliable, or effective as their OEM counterparts. Over time, however, aftermarket parts have garnered widespread acceptance as a valid alternative to original manufacturer parts. In some instances, they are even perceived as superior due to the usage of higher-quality materials and advanced technologies compared to those utilized by manufacturers. Furthermore, the Insurance Information Institute states that automotive aftermarket components should not obstruct a vehicle's warranty.

It is crucial to recognize that aftermarket parts can be divided into two primary categories: structural and cosmetic. According to the Insurance Institute for Highway Safety (IIHS), aftermarket cosmetic parts do not impact safety at all. Components such as fenders, quarter panels, door skins, bumper covers, and trim pieces do not compromise passenger safety. Conversely, structural parts are directly correlated to occupant safety during collisions. The IIHS affirms that certain aftermarket structural parts can meet safety standards.

For safety-critical structural components, buyers must ensure that they possess the Certified Automotive Parts Association (CAPA) certification. CAPA maintains strict standards and guidelines pertaining to aftermarket parts, conducting rigorous evaluations on production practices, material quality, and structural integrity. To obtain CAPA certification, aftermarket components must be deemed "functionally equivalent" to their OEM counterparts. This certification surpasses the "like kind and quality" standard set by some insurance providers, as it accounts for functionality and crash performance.

In addition to being more readily available than OEM parts, aftermarket components can also present significant cost savings for buyers. The Property Casualty Insurers Association of America (PCI) estimates that aftermarket parts save consumers over $1.5 billion annually. Generally, OEM parts are 60% more costly than those produced by third-party manufacturers, which is why insurance companies frequently opt for aftermarket components following accidents.

Best Practices for Selling Auto Parts Online

The growth of the automotive aftermarket eCommerce sector has prompted many auto parts businesses to explore online selling opportunities. However, many feel unprepared for this transition. Some lack technical expertise, while others might not have a comprehensive strategy or the necessary digital resources to operate online. This guide will also offer guidance on navigating the transition into online sales.

• Conduct Market Research

Launching a business nearly always requires extensive market research. One of the quickest and most effective methods involves speaking to various stakeholders involved in auto parts sales. This includes car enthusiasts, auto repair shop owners, and local mechanics. Inquire about their wants, needs, expectations, and challenges. Discover what drives their purchasing decisions and gather insights on their online shopping experiences. The data collected will provide valuable pointers for improving the overall shopping experience for your customers.

• Understand Your Online Demographics

As with any business, successfully managing an aftermarket auto parts company hinges on understanding your clientele. Customers can typically be divided into two broad categories: B2B (business-to-business) and B2C (business-to-consumer). B2B consumers include wholesalers like auto shops and garages, while B2C customers are generally end-users or car enthusiasts. B2B transactions often yield higher sales volumes, stability, and reduced overall costs, primarily because auto shops regularly replace components such as tires, oil filters, and spark plugs.

Conversely, B2C customers usually offer lower stability and volume than B2B buyers. Nonetheless, they allow businesses to access a broader customer base and provide quicker delivery options, such as same-day shipping. Moreover, car enthusiasts tend to prefer cosmetic accessories such as seat covers, mirror adornments, and suspension kits.

• Specialize in a Niche

While some aftermarket auto parts businesses serve both B2B and B2C customers, it is often more effective to concentrate on a specific niche. For instance, if your eCommerce site primarily caters to repair shops and garages, it is advisable to stock inventory tailored to the parts these customers frequently replace, such as oil filters, brake pads, and fuel pumps. Additionally, keeping an eye on the components that are prone to wear and tear will enhance your inventory strategy.

For B2C customers, focus more on cosmetic rather than functional or structural components. This strategy will improve the shopping experience and boost repeat business. It is essential to stay informed about trending auto parts, as these demand trends can fluctuate. However, certain components, such as tires, GPS devices, and jump starters, often remain consistent best-sellers.

• Analyze Your Competition

Once you comprehend your target audience, it's advisable to examine your competition. Investigate their sales channels on platforms like Amazon, eBay, or other eCommerce sites. Compare their pricing strategies and operating methods with your research findings to identify areas for improvement.

• Utilize Quality Images and Thorough Product Descriptions

High-quality images are crucial for online sales of car parts and accessories. Prospective buyers want to see what they're purchasing to assess the product's overall quality. Low-resolution images or generic stock photos may deter customers, potentially harming your brand's reputation.

A comprehensive product description is equally important. Providing fitment data in your listings allows customers to determine whether a part will suit their vehicle and meet their needs. Always note whether a component is aftermarket or OEM in your descriptions.

Utilizing Amazon for Selling Auto Parts

Amazon is a powerful platform for selling automotive aftermarket parts due to its vast customer base. To access this market, you must establish a Professional Seller account. You can either gain Amazon’s approval in this category or have it review your independent eCommerce website. To qualify for auto parts sales on Amazon, you will need to meet several basic requirements:

• Have a professional selling plan.
• Provide compliant product images.
• List UPC codes for all major brands in your inventory.
• Guarantee all certified refurbished products with the manufacturer or re-manufacturer.

While most automotive parts can be sold on Amazon, certain categories perform better than others—namely, exterior and interior parts, lighting, and LED products. Some examples of popular items include:

Exterior Parts:

• Billet grille upgrades
• Wind deflectors
• Front and side skirt lip kits
• Center caps
• Door mirrors

Interior Parts:

• Shifter knobs
• Dash kits
• Floor mats
• Window tints
• Seat covers
• Universal molding trims

Other Parts and Accessories:

• Tail lights
• Brake lights
• Turn signal lights
• Running board lights
• Headlights
• License plate lights
• Air Filters
• Vehicle Covers
• Tires and Rims
• Instrument cluster lights
• Marker lights
• Halo lights
• HIDs
• Projectors

Using eBay for Selling Auto Parts

eBay serves as another essential platform for selling automotive parts and accessories. It simplifies the buying and selling process effectively. If you do not have an account, register and select the Sell option. Create a product listing, providing all necessary details, and select eBay Motors in the Categories section, which will refine your options as you proceed.

Creating individual listings can be tedious, especially for large auto parts businesses. eBay’s Seller Hub can streamline this process, and the Motors Parts Compatibility tool allows you to add fitment data based on vehicle year, make, model, and other specifications.

Commonly-sold items on eBay encompass:

• Replacement grilles
• Steel bumpers
• Door mirrors
• Headlights
• Tail lights
• Fog lights
• Light bulbs
• License plate lights
• Shocks and Struts
• A/C Compressors
• Jump batteries
• Mirror accessories
• Control arms
• Timing kits
• Spark plugs
• Fuel tanks

Building Your Own eCommerce Website

Regardless of choosing to sell on platforms like Amazon, eBay, or establishing a standalone eCommerce site, creating your own website is a vital consideration. An eCommerce website is typically built on an open-source framework or through a hosted system, like Shopify or Bigcommerce. While the latter options require less maintenance, they offer limited customization compared to building a self-hosted site. Collaborating with a web developer can enhance your customization options and operational capabilities.

Conclusion

Whether you aim to sell fog lights, bumper covers, or other auto components online, setting up sales channels is merely the beginning. The competition is intense, highlighting the importance of keeping current with industry trends and newly introduced components. Utilizing digital tools effectively will also be crucial in managing eCommerce catalogs across sales channels.

When optimizing product listings, prioritize high-quality images and detailed descriptions. Providing accurate fitment data minimizes confusion for prospective buyers, ultimately boosting visibility during keyword searches.

Most importantly, keeping fitment data up-to-date is essential to ensure prospective buyers understand whether a part will suit their vehicle and fulfill their needs. MyFitment can facilitate the development and maintenance of your online catalog. With decades of experience in the automotive aftermarket industry, we are here to assist in increasing your sales through clear, accurate fitment data that alleviates buyer uncertainties. Learn how we can help you identify opportunities, streamline operations, and build your brand.

Are you interested in exploring KIA Aftermarket Parts? Contact us today for expert consultation!