Parts e-Commerce
A Dealer Guide
tedfellowes@gmail.com
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Agenda
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Interactive
Guide for your selection process
Lots of material; key content in 1st half
Range of experience: show of hands 0, 1, More
Introduction
Market Factors
Challenges & Risks
Types (Dealer as Seller)
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Summary (Costs/Efforts)
Dealer Retail Parts eStores
Wholesale Portals
Retail Portals
Mass Marketplaces
Other E-Commerce Types
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Summary Charts
Dealer Experiences
Action Plans
System Integration
Trends
Special Cases
Q & A / Wrap-Up
• No one right solution – many dealers will benefit from multiple solutions
• Solutions depend on dealer’s franchises, DMS and off-line parts business
Introduction
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Why Attend a Parts E-Commerce Seminar?
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E-Commerce is
Inevitable
Your Customers/Prospects
Your Competitors
Your Costs
Results (May Retain / Add Customers, Conversions & Related Parts, CSI – Without
Adding Staff or Increasing Capital Invested)
◦ Innovation Focal Point (6 Types; > 25 Suppliers; >> 50 Solutions)
◦ Messy market [more failures that successes; large & growing body of suppliers]
New
• Wholesale eStore
• New players likely to enter with new approaches
Related
• Dealer’s Service Websites
• Tire Websites – Major Advancements
Introduction
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[Cont.]
Why listen to me?
◦ Parts Systems Innovator
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North America, Europe, Japan & China
1st Electronic Parts Catalog (1986)
1st Parts E-Commerce – Automaker Portal (1999)
1st Wholesale Parts Portal (2000)
1st web parts locator, order referral (2002)
◦ No Horse in the Race
◦ Structured / Actionable
Market Factors
Buyer Loyalty
(Trading Bond – Importance to Buyer)
Low
Low
High
OE Retail Portals
Dealer Parts eStores
Wholesale Portals
(Primarily B2C & Semi-Pro)
(Primarily B2C & Semi-Pro)
OE Retail Portals
Parts Locators
(D2D, B2C, B2B)
Wholesale Portals
DMS Direct Client
OE Retail Portal
Parts Locators
OE Retail Portals
Parts Locators
OE Retail Portals
Wholesale Portals
DMS Direct Client
(D2D, B2C, B2B)
(D2D, B2C, B2B)
(primarily B2B; minimal B2C)
Mass Marketplaces
Dealer Parts eStores
(Primarily B2C & Semi-Pro)
Buyer
Urgency
(relative to
price)
Medium
OE Retail Portals
Marketplace eStores
Dealer Parts eStores
Medium
Bidding
Parts Locators
OE Retail Portals
(B2B & B2C)
High
(primarily B2B)
Solution Clusters
Collision (Body Shop)
Mechanical (Fleet / IRF / All)
Market Factors
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[Cont.]
Associated with Success:
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Failure common when many of these
factors are missing or are weak
Price Advantages (for Buyer)
Mandates (rare – on the rise)
Systems Integration (B2B; Buyer-side primary; Seller-side secondary)
Dedicated resources – Seller
Boosts communications (buyers still need assistance and fast confirmation)
Other buyer conveniences (24 x 7 order submission; access to digital
invoices; parts catalogs; …)
Challenges & Risks
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Costs
◦ Program pricing can be complicated and/or expensive
◦ Set-up and support/maintenance may be challenging
◦ Optional SEO/SEM & other advertising/marketing costs
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Customers
◦ Digital buyers’ expectations are high – fast, accurate
responses required
◦ Some buyers prefer phone
(you’ll support both – w/ some exception solutions/scenarios)
◦ Some buyers refuse to “own” Part
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Failure is an option
(EPC)
look-up
Parts E-Commerce Types
Sales Type
Primary: B2C
Dealer (Retail)
Emerging: B2B
eStore
Wholesale Portal Primary: B2B
Secondary: D2D
Retail Portal
Primary: B2C
Emerging: B2B
Market Place
Primary: B2C
Secondary: B2B
DMS Direct
Access
Locator
Primary: B2B
(fleet)
Bidding, R/A,
Buyer System
Primary: B2B
Primary: D2D
Secondary: B2C
Fees
Set-Up / Maint.
(Costs/Effort)
Other (alert)
Upfront Fees
Monthly Subscription
Minimal
SEM/SEO, advertising
Upfront Fees
Monthly Sub (possible
low commission)
Upfront Fees
Monthly Subscription
and/or Commission
Listing Fees
Monthly Subscription
Commission
Upfront Fees
Monthly Subscription
Customer Info
Integration (DMS, …)
Buyer enrollments
Minimal
Possible pricing limits
Upfront Fees
Monthly Subscription
Commission (Idle)
Upfront, monthly &
(low) commission fees
Upload parts files
Part Applications
Uploading parts Files
Customer credentials
Varies
May verify /process
and still not get order
Dealer Parts eStore
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Show of hands
Website for selling parts directly (plus Accessories & Merchandise)
◦ B2C now, B2B extensions emerging
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Two types:
Suggestion: get both for less than price of two
◦ New Internet Brand (aggressive discounts, AM, …)
◦ Dealership Brand (retail prices; limit service conflicts; customer search satisfaction)
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Benefits
◦ Increased sales (most incremental for dealer)
◦ National [International] reach – different markets
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TradeMotion, Parts Website, R&R, RevolutionParts,
SkyParts, WHI, DST, InterCity Services, PartsFirm, …
Accessories: Insignia, SBS, …
Issues:
1.
2.
Domain Name: OE IP
Buyer access
Dealer Parts eStore [Cont.]
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Economics – Internet Parts Brand
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Issues with omitting accessory
OE/AM catalogs from eStores
Costs: from just over $100/mo.
Transaction fees (credit card / PayPal) – several %
Additional marketing costs (SEO/SEM)
S&H fees; Restocking fees (covers returns)
Evidence of loyalty & less discounting for quality support
Winners: high volume & low prices (depend on special incentives)
Economics – Dealership Brand Extension
◦ Value: TBD (value = brand, CSI, …)
Wholesale Portals
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Show of hands
Connects Wholesale Buyers to Sellers via Cloud (indirect)
Types:
◦ OEM-sponsored (Toyota TPAS, Volvo-Mack Nexpart, VW partslink24, …)
◦ All/Multi-Makes (Nexpart, CollisionLink, TurboParts, RepairLink, …)
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Segments: Mechanical, Collision & Dealer (D2D)
Attributes / Capabilities:
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Dealer’s customer-specific pricing; availability
Dealer invoice (typically, no credit card or PayPal)
Dealer delivery or customer pick-up (> 95%)
Potential OEM or dealer purchase incentives
Potential for dealer “microsites”
Wholesale Portals [Cont.]
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Benefits / Economics
Automaker / buyer program
compliance may simplify ROI:
participate or exit wholesale
◦ Customer satisfaction & retention (pre-existing trading partners)
◦ More sales (related parts, conversion, new customers)
◦ Possible improved order processing productivity
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Other
◦ Customers may research parts (but order by phone – hidden results)
◦ No additional marketing costs to dealer (SEO, SEM)
◦ Upfront and Ongoing Costs / Efforts (enrolling buyers, set-up, …)
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Mechanical: WHI, DST vs OEC, Infomedia, Lexcom, …
Collision: OEC, Infomedia, WHI & TradeMotion
Retail Portals
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Show of hands
Connects Retail Buyers to Sellers Indirectly via Cloud
Parts, Accessories, Merchandise, Tires & Special Parts
Often an automaker program/solution
Benefits
◦ Marketing muscle – top search results (no SEO/SEM costs)
◦ New sales / new customers (referrals only to participating dealers)
◦ Greater order processing productivity
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Risks: fees & restrictions
Ford (FordParts.com – OEC); Honda (eStore); Chrysler (Mopar eStore –
Chrome Data), Nissan (eStore – TradeMotion), …
Retail Portals [Cont.]
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Issues with restrictions on marketing/selling
accessories via Retail Portals
Economics
◦ Revenue:
 Referrals will be ‘lost’ without participation
 Dealer may be charged significant % of sale
◦ Upsides
 Productivity gains from streamlined order processing
 No additional marketing costs …
◦ Other Considerations
 Restocking fee may be governed by Portal policy
 S&H may be set by Portal (enough to cover actual costs?)
Mass Marketplaces
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OEM Programs in Mass
Marketplaces: Navistar
Primarily B2C – AM, OE, Used
Parts, Accessories, Merchandise & Special Parts
Many Buyers are Price Sensitive
Benefits
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Show of hands
Marketplace brand recognition & traffic – worldwide
Marketing and advertising muscle
New sales from new customers – but low margin
Greater order processing productivity
Segments: Set Prices; Auctions; Classified Ads
eBay Motors; Amazon; Craigslist
Mass Marketplaces [cont.]
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Economics
◦ Transactional Fees, listing fees & storefront fees
 High volume parts at low margins (margin from allowances, TL discounts,
other automaker programs)
 Niche parts – hard-to-find, …
 For idle, part of a loaf is better than none
 Marketplace Partners (WHI, TM, Ford/Driverside, DST – integration only, …)
 Convenient parts list transfer w/ application info
 Non-transactional fees waived
 Listing & Shipping Automation tools available
◦ Upsides
 Productivity gains from streamlined order processing
 New markets, new customers, inventory liquidation, …
Other E-Commerce Types
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DMS – Buyer Client
◦ Dealerships provide parts buyers with direct DMS access to
check availability & submit orders via web app (user has part
numbers from previous orders or separate parts catalog)
◦ Emerging – Deployed by Karmak (including capability to search on partial
part number and part name as well as saved parts lists); deployed by UCS (R&R
Power); and included in some DMS fleet solutions (including ADP
FleetConnect)
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Dealer Wholesale Websites / eStores
◦ Emerging: InterCity, PartsFirm, Parts Website, TM,
SimplePart…
◦ Varied including niche markets – high customization options
Show of hands
Other E-Commerce Types [cont.]
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Parts Locators
◦ Types: OE-Sponsored & Independent
◦ Use (D2D and beyond): (i) Buyer searches by part #;
(ii) Locator match list (by distance); (iv) Buyer selects seller(s)
◦ Economics
 OE-Sponsored: Compliance, buyer convenience/orders
 Independent: ROI calculation like that for Retail Portal
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Bidding Solutions [Mandate]
◦ Buyer posts parts needed (and, possibly vehicle info)
◦ Sellers receiving notification, bid on providing parts
◦ Commission (low single-digits) per order
 = emerging, limited,
special conditions or …
Comments
Special: Idle &
Other
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Consumer
Accessories
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B2B
Collision
B2B
Mechanical
Dealer Sales of Parts
Seller Centric
Systems
Integration
Summary
Consumer &
Semi-Pro Parts
Legend
FleetConnect & Integration
ADP
Multiple
Amazon
Marketplace
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Ex: Navistar
Chrome Data
Retail Portal
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GM, Chrysler (Mopar.com)
Craigslist
Marketplace
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DealerMine
Idle Market
DST
Whsle Portals
eBay Motors
Marketplace
Infomedia
Whsle Portals
Insignia Group
Accessories
InterCity Services
Dealer eStores
Karmak
DMS Direct
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Lexcom
Whsle Portals
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PartsFirm
Dealer eStore
Parts Website
Dealer eStores
OEConnection
Whsle Portals
RevolutionParts
Dealer eStores
R&R
Multiple
SBS
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All-makes
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Ex: GM, Ford, many dealers
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Toyota
DST Joint Mktng
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Idle Parts
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TM or PW parts catalog
VW & Audi
Parts Website parts catalog
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All-makes
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Nearly all-makes; Idle Parts
Nearly All-makes
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Dlr eStores, Integ., direct
Multiple
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eASY; eStore; joint products
SimplePart
Dealer eStores
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SkyParts
Retail Portal
Software Global
Dealer eStores
TradeMotion
Multiple
WHI Solutions
Multiple
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All-makes; incl dlr eStores
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All-makes; eStores, portals
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All-makes; Portals, Retail eStore
Parts e-Commerce
Legend
PartsTrader
Bidding
Near / Approaching
E-Commerce
Comments
Consumer
Accessories
Consumer &
Semi-Pro Parts
B2B
Collision
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Reverse Auction
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Reverse Auction – SF Program
Comments
Bidding
Includes delivery logistics
Consumer
Accessories
PartsCheckLive
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Consumer &
Semi-Pro Parts
Buying Services
B2B
Collision
OPS
 = emerging, limited,
special conditions or …
B2B
Mechanical
Dealer Sales of Parts
Buyer-centric Ordering
B2B
Mechanical
Summary
PartsVoice
Locator
D2D & B2C; buyer systems access
PartsEye
Locator
D2D & B2C
Various
Idle Liquidation
D2D (some B2C)
Various
Repair Apps
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Parts Suppliers matching criteria
Parts e-Commerce
OE
Discounted
Distressed (Idle)
Automaker D2D
Comments
 = emerging, limited,
special conditions or …
AM
Summary
Legend
ADP
Integration
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Integration with leading B2B solutions
Amazon
Marketplace
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Craigslist
Marketplace
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DealerMine
Idle Market
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DST
Whsle Portals
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eBay Motors
Marketplace
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IAP (Epicor)
Whsle Portals
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InterCity Services
Dealer eStores
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Karmak
DMS Direct
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OEConnection
Whsle Portals
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SkyParts
Retail Portal
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WHI Solutions
Whsle Portals
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Dealer Purchases Parts
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Idle Parts
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Special / Customized websites
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Dealer Experiences
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New consumer parts sales, fewer returns and many
repeat buyers – Ford dealer & Parts Website customer
More sales, fewer returns, & higher satisfaction from
body shop customers – Nissan dealer & OEC customer
Customized eStore generating $100k/mo. in new
business– Chrysler dealer & Trademotion customer
Large volume of parts from new non-local consumers
– Chrysler dealer & eBay Motors customer
Dramatically higher productivity and buyer
satisfaction – multi-franchise dealer group & WHI customer
Customers love 24 x 7 ordering &real-time inventory
access; landed new accounts – GM dealer & DST customer
Action Plan
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Business Assessment
◦ Which Sector(s) – Collision, Mechanical [B2B] or B2C
◦ Which Franchises
◦ Which DMS
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Select, Try (hard), Evaluate, Keep / Discard – Repeat
General
◦ Look for Automaker Funding (co-op programs)
◦ Send your contact info to ted@fellowesresearch.com & I’ll
generate a free parts e-commerce plan for your dealership
Dealer System Integration
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DMS
◦ Advanced e-commerce capabilities – DMS dependent
◦ DMS Integration value highest for: B2B, high volume
◦ Capabilities
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Availability from DMS
MSRP from DMS
Customer’s Matrix Price from DMS
Order
 Parts / Quantity to DMS
 Status from DMS
◦ DMS Platforms supporting e-commerce include: ADP,
R&R, DealerTrack, Karmak, …
Dealer System Integration [Cont.]
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Shipping
◦ FedEx & UPS
◦ GPS / Routing – Your Delivery Fleet [Elite EXTRA]
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Wholesale Buyer System
◦ Mechanical Repair Shop Systems
◦ Collision Repair Shop Systems
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E-Commerce to E-Commerce
◦ WHI to eBay Motors
◦ TM to eBay Motors
◦ OEC to eBay Motors via DriverSide & Ford
Trends
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Opportunities / Advances
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Expanding Systems Integration
Wider range of buy-side platforms (tablets, smart phones, …)
Catalog improvements
Pricing incentives use expanding – high impact
Online chat
Dealer parts deliveries to personal residences
Declining parts returns (better catalogs, e-commerce applications, …)
Dealer-as-a-Buyer
Challenges / Threats (to dealerships)
◦ Bidding Systems (State Farm / PartsTrader) – Shops Resisting
◦ AM sector’s success with parts e-commerce
Special Cases
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Accessories / Merchandise
Niches: Vintage, Performance, Power Train
Tires
Idle
Dealer-to-Dealer (D2D)
Dealer Groups
◦ Dealer Websites Branding, Referral
◦ Trade between stores
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Dealer as a Buyer
◦ Distressed parts (idle, primarily)
◦ AM
Questions & Answers
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Your Questions
Thank-You
For more: ted@fellowesresearch.com
www.fellowesresearch.com