Shoppers Fuel Up on Automotive Accessories: The Amazon Effect · The Numbers • $277 billion:...
Transcript of Shoppers Fuel Up on Automotive Accessories: The Amazon Effect · The Numbers • $277 billion:...
Shoppers Fuel Up on Automotive Accessories: The Amazon Effect
By Nathan Rigby, VP Sales and Marketing at One Click Retail
The U.S. automotive market experienced a record year in 2016 with 17.55 million vehicles sold, putting
an end to the decade of uncertainty and low sales. Even with all these new cars on the road, the average
vehicle in the U.S. is at an all-time high of 11.5 years old and there are over 14 million cars on the road
over the age of 25. With so many aging vehicles, the automotive aftermarket is thriving and has become
one of the fastest-growing segment in online sales.
Enter Amazon. The eCommerce juggernaut is not new to automotive sales, having originally introduced
auto parts to the platform back in 2006. Last year Amazon expanded its automotive arsenal by launching
its own car research site and a parts marketplace, which allows shoppers to punch in their make and
model to search for the correct parts. This and other conveniences reveal that the automotive
aftermarket is not escaping Amazon's notice and the impact of Amazon on the market is already
disruptive.
The Numbers
• $277 billion: Total 2016 U.S. automotive aftermarket sales.
• $2.4 billion: Amazon.com 2016 Automotive sales.
• $1.4 billion: Amazon.com 2017 YTD Automotive sales.
• 16%: YoY growth of Amazon.com Automotive sales.
*Figures reflect Amazon first-party sellers only
In 2017 so far, specialty auto parts companies such as O'Reilly Automotive, AutoZone and Advanced
Auto Parts have underperformed in the stock market, according to Canton Rep, despite expectations to
the contrary. This has caused many investors to reassess the market and look elsewhere for disruptors.
After long overlooking its ability to compete in the automotive aftermarket, industry analysts are finally
starting to recognize Amazon as a serious player.
U.S. Top Selling Categories 2017 Q1 & Q2
Category/Subcategory Sales
Truck Accessories $185M
Towing/Towing Accessories $70M
Bedliners/Covers/Deflectors/Shields/Sun Protection $40M
Replacement Parts - Underhood $165M
Engine Management $50M
Wiper Motors/Blades $25M
Automotive Equipment & Tools $150M
Battery & Electrical System Equipment $55M
Paint/Body Tools & Equipment $20M
RV Parts & Accessories $130M
Appliances, Heating, A/C, Power, Electical & Electronics $35M
Fresh Water & Waste Water Systems $30M
Replacement Parts - Undercar $130M
Suspension/Chassis $45M
Brakes $25M
Two major trends in automotive aftermarket sales are that owners of older cars exhibit desirable
maintenance behaviors, while new car owners tend to invest in appearance products. With the fleet of
vehicles on the road aging rapidly in the U.S., more and more car owners are turning to Amazon for their
replacement parts, with Underhood and Undercar Replacement Parts generating nearly $300M in sales
during the first two quarters of 2017 alone, a growth of 20% YoY.
Beating out both replacement parts categories is Truck Accessories with $185M. Sales are driven by
Towing Accessories, making up over a third of the total category sales and responsible for the two top
items: an electronic brake control from Tekonsha and a 9500lb capacity winch from Smittybilt. Growth
in Truck Accessories is low, however, with most gains in the product group coming from appearance
products such as Wheel & Tire Accessories (55%) and Appearance Chemicals (30%).
U.S. Top Sellers 2017 Q1 & Q2
Title Category
Stanley Jump Starter with Compressor Automotive Equipment & Tools - Battery & Electrical System Equipment
Jump-N-Carry 12V Jump Starter Automotive Equipment & Tools - Battery & Electrical System Equipment
NOCO Genius Boost Plus UltraSafe Lithium Jump Starter
Automotive Equipment & Tools - Battery & Electrical System Equipment
Tekonsha P3 Electronic Brake Control Truck Accessories - Towing/Towing Accessories
Optima Batteries BlueTop Starting and Deep Cycle Marine
Undercar Performance Parts - Electrical & Rotating Electrical
Battery Tender Junior 12V Battery Charger
Automotive Equipment & Tools - Battery & Electrical System Equipment
Smittybilt Winch - 9500lb Load Capacity Truck Accessories - Towing/Towing Accessories
Keeper Waterproof Roof Top Cargo Bag Truck Accessories - Cargo Management, Interior/Exterior
Furrion Wireless High-Speed RV Observation System
RV Parts & Accessories - Appliances, Heating, A/C, Power, Electical & Electronics
X-Chock Wheel Stabilizer Pair - One Handle
RV Parts & Accessories - Leveling, Towing & Stabilization
UK/France/Germany Automotive
In Europe, Amazon's Automotive sales are driven by Equipment & Tools, the top category in both the UK
and France and one of the top categories in Germany. In all three countries, Automotive Equipment &
Tools is responsible for many of the best selling items in the first two quarters of 2017, with the top
category item across the board being a car battery charger: a CTEK model in the UK and Germany and a
Black & Decker model in France. The popular of Equipment & Tools, Car Care, and Wear & Tear parts
across all countries indicates a rise in DIY car maintenance, with many hobby mechanics turning to
Amazon for their tools and supplies.
UK 2017 Q1 & Q2 £32,000,000
Automotive Equipment & Tools £6,000,000
Car Care, Chemicals & Fluids £5,000,000
Automotive Accessories £4,500,000
Caravanning & Campers £2,500,000
Wear & Tear Parts Car & Truck £2,000,000
FR 2017 Q1 & Q2 €14,000,000
Automotive Equipment & Tools €2,500,000
Automotive Accessories €1,500,000
Car Care, Chemicals & Fluids €1,500,000
Caravanning & Campers €1,500,000
Wear & Tear Parts Car & Truck €1,000,000
DE 2017 Q1 & Q2 €98,000,000
Transporting & Storage €13,000,000
Car Care, Chemicals & Fluids €12,000,000
Tires & Rims €12,000,000
Caravanning & Campers €10,000,000
Automotive Equipment & Tools €9,000,000
Key Findings
The automotive industry is flooded with incumbents. Compared to many other product groups, Amazon
is going up against many well-established retailers in their efforts to disrupt the automotive aftermarket
sector. Judging by the first two quarters of 2017, Amazon is making some serious inroads, and the
business opportunity for brands selling through the eCommerce platform is looking more attractive than
ever. The key markets – aging vehicle maintenance, DIY mechanics, and a wave of new car sales driven
by the recovered economy – are experiencing significant growth on Amazon and brands are taking note.
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