Auto parts 2023 sales topped $35 billion, up about 50% over 2020 and more than triple the 2016 eCommerce auto parts volume at user-price
Fort Wayne, Ind.—Climbing at an annual rate more than seven times the yearly increase of the overall light vehicle aftermarket, eCommerce added $25 billion in auto parts sales at user-price between 2016 and 2023. Auto parts growth in the U.S. is changing its volume mix among three major market segments and the eCommerce sales shift from eSellers to Platform Sellers, according to the latest Lang Aftermarket iReport.
The following are key takeaways from the analysis.
eCommerce Auto Parts Sales: Two Time Segments
From 2016 to 2019, eCommerce auto parts volume increased about 60% in the U.S., climbing from a $1 billion annual gain to more than a $3 billion yearly sincrease. However, in 2020, COVID-19 created a 37% increase in eCommerce auto parts, with annual volume soaring by more than $6 billion.
Over the next three years, eCommerce sales continued strong, averaging nearly a $4.3 billion yearly gain from 2021 to 2023, over twice its average annual increase before COVID-19.
1P and 3P Volume
Lang Marketing’s analysis of eCommerce covers both 1P and 3P transactions. In 1P (first party) auto parts sales, the eCommerce company (Platforms and eSellers) is the seller, and the manufacturer/distributor (brand) is the supplier. In 1P transactions, eCommerce companies generally inventory the products and fulfill orders.
In the 3P (third party) model, manufacturers/distributors sell auto parts directly to consumers via an electronic platform (marketplace) such as Amazon, eBay, etc. Manufacturers/distributors, not eCommerce companies, control the pricing and usually hold the inventory and fulfill the orders.
eCommerce Auto Parts Sales Triple
eCommerce auto parts 2023 sales topped $35 billion, up about 50% over 2020 and more than triple the 2016 eCommerce auto parts volume at user-price.
Over $246 Billion in Aftermarket Sales
This eCommerce analysis covers a total aftermarket of more than $246 billion in product sales at user-price. Tires, Accessories, and other market segments and products are included that are not covered by most of the light vehicle analysis presented by Lang Marketing. Based on a $246 billion aftermarket in 2023, eCommerce topped a 14% share of product sales, up from less than 6% in 2016.
Three Types of eCommerce
Lang Marketing divides eCommerce auto parts sales into three categories: Do-It-Yourself (DIY), Business-to-Business (B2B), and Online to Offline (o2o). DIY eCommerce includes auto parts purchases by individuals rather than by professional technicians, other businesses or professional end-users.
B2B eCommerce transactions are between businesses, including distributors, retailers, installers, and other commercial operations.
Online-to-Offline (o2o) eCommerce involves the online purchase of auto parts that are installed offline by DIFM outlets, which usually belong to a group of approved repair shops.
eCommerce’s Changing Business Mix
The eCommerce shares of the DIY, B2B, and o2o segments are shifting in the rapidly expanding marketplace. DIY activity has declined in its eCommerce share, slipping from about three-quarters of the 2016 eCommerce market to less than 60% of the 2023 volume.
o2o volume has expanded its eCommerce share by about two-thirds over the past seven years, and B2B, which represents the smallest share of eCommerce auto parts volume, has doubled its eCommerce share since 2016.
Share of eCommerce Growth
The three major categories of eCommerce vary widely in their share of eCommerce auto parts growth.
o2o transactions captured a much larger share of the total eCommerce aftermarket growth between 2016 and 2023 than their share of the 2023 market.
Although DIY sales captured the largest share of eCommerce product growth over the past seven years, their share of the eCommerce auto parts market has diminished. B2B sales have been responsible for a much larger share of eCommerce’s growth between 2016 and 2023 than their share of the 2023 eCommerce market.
Platforms and eSellers
The eCommerce auto parts shares of Platforms and eSellers have shifted over the past seven years. Their shares of the 1P and 3P segments of eCommerce auto parts sales have also changed.
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