Automotive afterparts are replacement parts of automobiles manufactured by the original equipment manufacturer. They are also known as non-OEM parts, generic, or replacement parts. They are utilized to replace damaged or non-working parts in automobiles and other equipment. Usually, these parts are offered to those vehicles which are under insurance coverage.
It might cost expensive in repairing a damaged vehicle. Therefore, motorists request afterparts for repairing, as they tend to be non-expensive compared to the parts made by original equipment manufacturers.
E-Commerce Automotive Aftermarket
If you have been caught in a car accident, then the insurance company may suggest you that use automotive afterparts compared to OEM parts in the repairing of the vehicles. Insurers can modify the coverage of policy going forward by utilizing the aftermarket parts, and by allowing the repair shop to use the aftermarket parts, as per the language of the auto policy.
It often may become a conflict ground, that the use of aftermarket parts for repairments may impact the warranties. Moreover, the Magnuson-Moss Act governs warranty language and restricts tie-in sales or the usage of language that directly suggest the usage of OEM product. For instance, a manufacturer cannot force consumers for using their product by threatening them with voided warranty.
The e-commerce automotive afterparts industry generates revenue worth $78,631.4 million, and it is projected to generate $191,545.7 million, advancing at a rate of 10.4% from 2021 to 2030. It is led by the growing popularity of DIY customers. The ease of convenience offered by online digital channels also contributes to market growth.
The online channels offer ease of access to automotive replacement parts that are difficult to find at physical stores or repair shops. The timely delivery of replacement parts through online distribution leads to their increased preference compared to conventional brick-and-mortar stores. A large number of e-retailers, such as Amazon.com Inc., and Alibaba Group Holding Ltd.
E-commerce also enables extensive research and comparison based on features, prices, specifications, compatibility, delivery times, specifications, and other offers that provide ease for DIY and DIFM customers to compare products from various online sources. Thus, a large number of customers rely on e-commerce platforms to buy replacement parts.
Companies selling aftermarket parts through online platforms are participating in acquisitions, and mergers to stay on the competitive edge. For instance, Shinsegae Group’s E-Mart Inc. based in South Korea acquired an 80% stake in the South Korean business of eBay Inc. for $3.0 billion, to expand itself in the nation’s e-commerce industry. Similarly, Adevinta captured 540 million shares of eBay’s Classifieds Group for $2.5 billion worth of cash, and a complete transaction valuing around $13 billion based on current stock market prices.
Therefore, the ease of access provided by various e-commerce platforms and allowing comparisons between various replacement parts boost sales of automotive afterparts through online channels.