Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • BEST PLACES TO WORK
  • News
    • HUMANITARIAN
    • TIRE MAKERS
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • OBITUARIES
    • OPINION
    • MID YEAR REPORT
    • SERVICE ZONE
  • ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • Events
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
May 15, 2018 02:00 AM

E-commerce auto aftermarket still small, but growing — NPD Group

Tire Business Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    PORT WASHINGTON, N.Y. — The share of automotive aftermarket business transacted online has doubled in the past three years, market research firm NPD Group Inc. contends, although at 14-percent penetration it ranks among the lowest industry sectors tracked.

    "E-commerce is the hottest topic in the aftermarket today, and the most frequent thing I get asked about," said Nathan Shipley, executive director and automotive industry analyst of NPD Group.

    "Looking forward over the next three to five years, I expect its penetration to grow to about 25 percent. Observing industries that have gone down the e-commerce path long before automotive aftermarket, 25 to 30 percent is the maturation point we are seeing."

    The top product categories purchased online in 2017 were lighting, interior accessories and exterior accessories, NPD said, with online penetration of 18, 13 and 11 percent, respectively, in dollar volume terms.

    This contrasts with in-store business, where the top three categories purchased were batteries, motor oil and performance chemicals, based on NPD's Retail Tracking Service.

    Shipley

    NPD's research also shows that the e-commerce aftermarket demographic is quite different than that of its brick-and-mortar counterpart.

    According to NPD's Checkout E-commerce Tracking — based on information collected from more than 3 million consumers through data provided by Slice Intelligence — the largest contingent of online buyers are consumers age 35 and older, with five or more purchases annually. By contrast, millennials tend to be light buyers, with just a single purchase annually.

    This is in line with NPD's findings in its 2018 Consumer Outlook Survey, the market research firm said, in which a high percentage of younger (43 percent) and older (51 percent) millennials reported having no plans to purchase automotive products online in 2018.

    With millennials both entering their peak driving years and being fluent in online researching and purchasing, this demographic is an important factor in the aftermarket's online strategy.

    While consumers were split when asked whether they would purchase automotive products online in 2018, their opinions shifted in favor of the idea when presented with the option to buy online and pick up in store.

    Based on purchase frequency, consumers are most attracted to "click and mortar," or traditional retailers with an online presence, which allows them to buy online and pick up in store.

    This is a popular option, as it captures 40 percent share of e-commerce sales.

    "Immediate need gives physical stores the upper hand because timing is everything for the automotive consumer who often purchases products to fix something that is broken, not save for future use," Mr. Shipley said. "However, having the right parts, at the right time, and at the right store poses a challenge for auto parts retailers.

    "For these reasons, it's important for both shopping channels to coexist, and for retailers and manufacturers to avoid putting all their eggs in one basket," he added. "E-commerce presents an invaluable opportunity to enhance the shopping experience and ultimately drive foot traffic to the store."

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Tire Discounters grows again, adds Skip Cottrell's
    2
    Icahn-owned Auto Plus files for Chapter 11 protection
    3
    Truck sector leads U.S. tire market; consumer down
    4
    K&M welcomes dealers to annual conference in Vegas
    5
    Black's Tire Service holds leadership conference
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • Instagram
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • BEST PLACES TO WORK
    • News
      • HUMANITARIAN
      • TIRE MAKERS
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • OBITUARIES
      • OPINION
      • MID YEAR REPORT
      • SERVICE ZONE
    • ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION