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Here are the top 6 unexpected but positive side effects of eCommerce on dealerships.
Expanded Customer Radius
With eCommerce solutions, your customer radius grows exponentially. You can grow your customer base from a few hundred or a few thousand in your local area to a few million nationwide. With a reach that wide, you can increase your business in a short amount of time. More customers mean more sales and a higher chance to increase revenue.
Low Parts Obsolescence
The biggest contributor to a low absorption rate is obsolete parts. Obsolete parts can make up to 30% of your parts inventory, and getting rid of them is a struggle. How can using eCommerce solutions help lower parts obsolescence?
Selling obsolete parts online is a massive market.
The biggest benefit of selling obsolete parts online is that you can use multiple channels to sell them. You can use a separate web store for your parts department. You can also sell obsolete parts through online marketplaces like Amazon and eBay. The more channels you have to sell through, the higher your chances of selling obsolete parts are.
Improved Absorption Rate
Most dealers say that the absorption rate is very important to them and the success of the dealership. The higher the absorption rate, the better. Today, the average absorption rate for dealerships is around 57%. However, that percentage seems to get lower every year for many dealerships. This is because many customers are turning to aftermarket retailers for parts and accessories. Selling parts online can help you improve your absorption rates. It can help you cycle through inventory faster without sacrificing the supply of in-demand parts that your local customers need.
Increased OEM Incentives
Some (but not all) OEMs offer dealer incentives to hit higher sales goals. Parts managers can take advantage of these by hitting higher parts sales numbers through online selling channels. Remember that when selling online, it’s a volume game. The higher the volume of parts you can sell at a time, the higher your chance of meeting your OEMs incentive requirements.
Increased Profits and Revenue
With a wider customer reach, you stand a better chance of increasing profits and revenue. It’s a no-brainer. You can also use eCommerce solutions to track your numbers better. You can track your profit margins, monthly and annual revenue, and overall growth with ease using digital tools. This can help you better understand what areas helped you grow the most and make the best strategy to continue that success. With the right tools, you can find the best ways to gain new customers and keep them.
Higher Parts Sales
The obvious benefit of eCommerce solutions is the ability to sell more parts. Whether they’re obsolete parts, seasonal parts, or even accessories, using online sales channels can help you grow your parts business. You can connect with more customers, including wholesale customers, and cast a wider net. With convenient tools like same-day local delivery, you encourage more people to purchase parts from you in the future.
The Key to Successfully Selling OEM Parts Online
These are just a few of the benefits you can get from using eCommerce solutions in your parts department. You can gain even more with the right tools and strategies. Want to learn more about how use eCommerce tools can make your parts sales skyrocket? Download our eBook, “The 8 Keys to Successfully Selling OEM Parts Online,” to find out more.