Has the thought of slimmer margins stopped you from moving your OEM parts and accessories department to an eCommerce platform? What if learning when to be flexible with pricing could help your dealership turn a greater gross profit in your Parts Department?

By using an online-specific pricing strategy that prioritizes gross profit instead of profit margin, your dealership will realize important benefits related to backend revenue. The key to being a successful OEM parts dealer is understanding the importance of volume selling and can only be achieved online, so what are you waiting for?

Since the new car parts industry is rapidly moving online, the time to get set up is now.

Keep reading for pricing strategies to help you earn your share of a $12 billion market.

Reduced Shipping for High-Priced Parts.

To sell online you need to kick your flat-rate margin to the curb… and get ready for your gross profit to skyrocket. Hear us out: If you have parts that are priced higher than your competitors, consider offering free (or low-cost) shipping. Emphasize the shipping benefit in your marketing.

The #1 reason buyers abandon a purchase is because shipping fees made the cost more than expected (48% of buyers). A great way to avoid scaring away shoppers and protecting your margins is by hiding the shipping cost within the price of the part! This is especially effective on Amazon and eBay where parts shoppers expect to see free shipping.

Promotional Codes

Do you have an overstock of individual parts? Do you carry certain parts that are in higher demand during certain seasons? A great strategy is to use a promotional code on your website to attract buyers who are seeking those parts. Not only will this help you sell a larger volume of parts, but it will also help you build a returning customer base.

Use digital marketing to take some pressure off your margins.

Marketing your auto parts online may differ than how you do so at your dealership. Your shoppers are on Google and it’s recommended to try Adwords or Display ads, or hire a marketing agency to do it for you. Your shoppers are googling specific parts. You can let them know when you have a discount or other promotion to attract them to your store.

Higher sales volume + lower profit margin = greater gross profit

Why discount when you can get upwards of cost+36% on OEM car parts and accessories at the counter? Let us explain. Instead of selling a few parts per week, why not promote your volume discount price and sell thousands?

Think of it this way: 2% of $100,000 is a lot more than 35-40% of nothing.

If you can sell your parts at cost+12% on a part online, you are generating more revenue for your dealership than if you never made the sale. Plus, you will generate revenue toward OEM bonuses and get closer to 100% absorption rate.

Here’s another example: 5% of $50,000 is $2,500 extra you wouldn’t have otherwise. Digital retailing allows you to make volume sales throughout the year to generate extra revenue.

Pricing and shipping templates are your best friend

When pricing parts for digital retailing, the best practice is to use pricing and shipping templates. Don’t take our word for it—Frank Costa from Audi Wilmington has success using this pricing method.

The RevolutionParts eCommerce solution lets you set different rules for your auto parts and your accessories. With pricing templates, you can set pricing rules with tables (also known as pricing matrices). You set your prices to optimize volume sales, which will most likely be a “cost+” model.

If your customers are not buying, then you might be pricing the part too high, and have to come down on price. Every Parts Department is different – you just have to find your secret sauce!

RELATED: How to Build a Powerful Pricing Table for your Parts Website in 5 Simple Steps

The same concepts go for shipping. You can set the shipping rules for any number of scenarios. For example, you can set standard mail vs. 2-day shipping, or add carrier and padding feeds. And with heavier items, you can raise the shipping fee to increase your profit. That’s right – you can actually profit on shipping! This is yet another revenue source that comes with selling parts online.

Knowing when to be flexible with pricing online can generate multiple revenue streams to your Parts Department and the dealership as a whole. Do it right, and you’ll attract buyers who will look to buy from you over and over again.

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If you’re a Parts Manager who’s thinking about selling OEM parts and accessories online, one of your biggest concerns might be how you’re going to deal with the logistics of shipping and order fulfillment.

Dealer Spotlight

Frank Costa is the kind of guy who wakes up every day with the mission to do better than he did yesterday. That’s the work ethic he brings to managing the Parts Department at Audi Wilmington, Delaware.


Selling your Parts Department inventory on Amazon and eBay will give you instant access to millions of customers shopping for auto parts. Take some of the guesswork out of listing and selling parts and accessories online with this helpful guide. 

Request a demo of THE #1 WAY FOR NEW CAR DEALERS TO SELL PARTS & Accessories ONLINE

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