“According to leading marketing researchers, online sales of auto parts is expected to hit $5 billion in 2014,” says Phil Thow, President of SEM Media.
Scottsdale, Arizona (PRWEB) November 13, 2014
SEM Media, an award-winning agency that specializes in automotive dealership marketing, is seeing an explosion of growth in automotive parts sales online and now dedicates a significant part of its firm’s business to helping dealerships transition to online parts sales through specialized lead generation software and e-commerce solutions.
“According to leading marketing researchers, online sales of auto parts is expected to hit $5 billion in 2014,” says Phil Thow, President of SEM Media Group. “Last year, online auto parts sales increased over 16 percent from 2012 sales. Any way you cut it, that’s aggressive growth, and traditional retailers are seeing the value of switching over, either part-time or even full-time, to online sales.”
With $4.3 billion in sales in 2013, online sales of auto parts and accessories have been growing between 12 – 16 percent annually in recent years. In fact, online auto parts sales now show higher growth, annually, than brick-and-mortar counterparts do. Since 2007, sales at major parts chain stores have only grown 3-5 percent.
The reason for this online car parts sales growth goes back to the recession; when many car owners held off not only on purchasing new cars but on repairs and maintenance on their current vehicles. In 2010, the auto industry rebounded through “pent-up demand,” and increased motor vehicle registrations aided growth. Between 2011 and 2013 the average age of the U.S. vehicle fleet rose as drivers postponed buying new cars. More old cars on the road mean more need for parts and accessories.
“Of course, online automotive parts retailers are now facing increased competition,” says A.J. Kumar, lead programmer at SEM Media. “For example, Amazon.com’s online sales of auto parts grow 25 percent a year, and that retailer sells more auto parts online than any other. But they are limited in their approach. They can’t fully address what consumers are also looking for when searching for parts. Consumers want information, advice, and video tutorials. They also want to speak to a live customer service representative about the parts they might need. Really, the customer wants to build a relationship with a business. With Amazon.com, all a consumer can do is buy and hope.”
Industry researchers also find that the trend of consumers turning to the Internet for repair advice will exponentially decrease any advantage auto parts stores once had. The do-it-yourself market is substantial sub-culture. It is part hold-over from the recession, when people had to figure out how to fix what they needed, compounded by the abundance of information available online.
Learn more about SEM Media Group here http://www.semmedia.com.
About SEM Media Group
SEM Media is a full-service branding and marketing agency with over 15 years of programming, design and Internet marketing experience. From design to lead generation, clients at SEM Media get more business and boost their online presence through innovative technologies, creatively adapted for the competitive online market.