Shoppers Fuel Up on Automotive Accessories: The Amazon Effect

By Nathan Rigby, VP Sales and Marketing at One Click Retail

The U.S. automotive market experienced a record year in 2016 with 17.55 million vehicles sold, putting

an end to the decade of uncertainty and low sales. Even with all these new cars on the road, the average

vehicle in the U.S. is at an all-time high of 11.5 years old and there are over 14 million cars on the road

over the age of 25. With so many aging vehicles, the automotive aftermarket is thriving and has become

one of the fastest-growing segment in online sales.

Enter Amazon. The eCommerce juggernaut is not new to automotive sales, having originally introduced

auto parts to the platform back in 2006. Last year Amazon expanded its automotive arsenal by launching

its own car research site and a parts marketplace, which allows shoppers to punch in their make and

model to search for the correct parts. This and other conveniences reveal that the automotive

aftermarket is not escaping Amazon's notice and the impact of Amazon on the market is already

disruptive.

The Numbers

• $277 billion: Total 2016 U.S. automotive aftermarket sales.

• $2.4 billion: Amazon.com 2016 Automotive sales.

• $1.4 billion: Amazon.com 2017 YTD Automotive sales.

• 16%: YoY growth of Amazon.com Automotive sales.

*Figures reflect Amazon first-party sellers only

In 2017 so far, specialty auto parts companies such as O'Reilly Automotive, AutoZone and Advanced

Auto Parts have underperformed in the stock market, according to Canton Rep, despite expectations to

the contrary. This has caused many investors to reassess the market and look elsewhere for disruptors.

After long overlooking its ability to compete in the automotive aftermarket, industry analysts are finally

starting to recognize Amazon as a serious player.

U.S. Top Selling Categories 2017 Q1 & Q2

Category/Subcategory Sales

Truck Accessories $185M

Towing/Towing Accessories $70M

Bedliners/Covers/Deflectors/Shields/Sun Protection $40M

Replacement Parts - Underhood $165M

Engine Management $50M

Wiper Motors/Blades $25M

Automotive Equipment & Tools $150M

Battery & Electrical System Equipment $55M

Paint/Body Tools & Equipment $20M

RV Parts & Accessories $130M

Appliances, Heating, A/C, Power, Electical & Electronics $35M

Fresh Water & Waste Water Systems $30M

Replacement Parts - Undercar $130M

Suspension/Chassis $45M

Brakes $25M

Two major trends in automotive aftermarket sales are that owners of older cars exhibit desirable

maintenance behaviors, while new car owners tend to invest in appearance products. With the fleet of

vehicles on the road aging rapidly in the U.S., more and more car owners are turning to Amazon for their

replacement parts, with Underhood and Undercar Replacement Parts generating nearly $300M in sales

during the first two quarters of 2017 alone, a growth of 20% YoY.

Beating out both replacement parts categories is Truck Accessories with $185M. Sales are driven by

Towing Accessories, making up over a third of the total category sales and responsible for the two top

items: an electronic brake control from Tekonsha and a 9500lb capacity winch from Smittybilt. Growth

in Truck Accessories is low, however, with most gains in the product group coming from appearance

products such as Wheel & Tire Accessories (55%) and Appearance Chemicals (30%).

U.S. Top Sellers 2017 Q1 & Q2

Title Category

Stanley Jump Starter with Compressor Automotive Equipment & Tools - Battery & Electrical System Equipment

Jump-N-Carry 12V Jump Starter Automotive Equipment & Tools - Battery & Electrical System Equipment

NOCO Genius Boost Plus UltraSafe Lithium Jump Starter

Automotive Equipment & Tools - Battery & Electrical System Equipment

Tekonsha P3 Electronic Brake Control Truck Accessories - Towing/Towing Accessories

Optima Batteries BlueTop Starting and Deep Cycle Marine

Undercar Performance Parts - Electrical & Rotating Electrical

Battery Tender Junior 12V Battery Charger

Automotive Equipment & Tools - Battery & Electrical System Equipment

Smittybilt Winch - 9500lb Load Capacity Truck Accessories - Towing/Towing Accessories

Keeper Waterproof Roof Top Cargo Bag Truck Accessories - Cargo Management, Interior/Exterior

Furrion Wireless High-Speed RV Observation System

RV Parts & Accessories - Appliances, Heating, A/C, Power, Electical & Electronics

X-Chock Wheel Stabilizer Pair - One Handle

RV Parts & Accessories - Leveling, Towing & Stabilization

UK/France/Germany Automotive

In Europe, Amazon's Automotive sales are driven by Equipment & Tools, the top category in both the UK

and France and one of the top categories in Germany. In all three countries, Automotive Equipment &

Tools is responsible for many of the best selling items in the first two quarters of 2017, with the top

category item across the board being a car battery charger: a CTEK model in the UK and Germany and a

Black & Decker model in France. The popular of Equipment & Tools, Car Care, and Wear & Tear parts

across all countries indicates a rise in DIY car maintenance, with many hobby mechanics turning to

Amazon for their tools and supplies.

UK 2017 Q1 & Q2 £32,000,000

Automotive Equipment & Tools £6,000,000

Car Care, Chemicals & Fluids £5,000,000

Automotive Accessories £4,500,000

Caravanning & Campers £2,500,000

Wear & Tear Parts Car & Truck £2,000,000

FR 2017 Q1 & Q2 €14,000,000

Automotive Equipment & Tools €2,500,000

Automotive Accessories €1,500,000

Car Care, Chemicals & Fluids €1,500,000

Caravanning & Campers €1,500,000

Wear & Tear Parts Car & Truck €1,000,000

DE 2017 Q1 & Q2 €98,000,000

Transporting & Storage €13,000,000

Car Care, Chemicals & Fluids €12,000,000

Tires & Rims €12,000,000

Caravanning & Campers €10,000,000

Automotive Equipment & Tools €9,000,000

Key Findings

The automotive industry is flooded with incumbents. Compared to many other product groups, Amazon

is going up against many well-established retailers in their efforts to disrupt the automotive aftermarket

sector. Judging by the first two quarters of 2017, Amazon is making some serious inroads, and the

business opportunity for brands selling through the eCommerce platform is looking more attractive than

ever. The key markets – aging vehicle maintenance, DIY mechanics, and a wave of new car sales driven

by the recovered economy – are experiencing significant growth on Amazon and brands are taking note.

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marketplaces. Using a combination of website indexing, machine learning and proprietary software, OCR

estimates weekly online sales figures with 98.5% accuracy down to the level of the individual SKU on

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