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INDUSTRY INSIGHT

Sell Parts on Multiple Selling Channels Close to 112 million people in the U.S. Insurance
reported using a delivery service app
New car sales are waning, and forward- at least once in 2020. The use of these
thinking dealers are turning to other profit services is expected to continue to grow. Companies are
generators in the dealership. Drivers are With most consumers moving toward
keeping their vehicles longer. This means this kind of shopping model, automotive Refusing to
more of them are coming into your parts retailers will have to quickly pivot
and service departments rather than toward this buying experience to meet
purchasing a new vehicle. the demands of their local consumer Cover Certain
base.
Parts sales, in particular, felt a significant Hyundai and
impact during the pandemic. Dealers felt Another great way to use crowd-sourcing
a sharp decrease in their conventional services is to use them in tandem with
parts business, losing close to $6 billion the service lane. Dealers can use services Kia Models
in parts sales. However, online sales like Lyft and Uber to schedule rides
weren’t decreasing in the same way but for customers with cars being serviced. By Chris Teague
were instead increasing. RevolutionParts When they drop off their car, order a
customers saw a 27% increase in parts ride to get them to their destination and You’ve probably heard about the TikTok-
sales by selling online in 2020. return later. They’ll be thankful for the
convenience. inspired uptick in Hyundai and Kia thefts,
Selling parts online is the new way to where the lack of an immobilizer has given
thieves an open invitation. Beyond the
generate more revenue at the dealership. Improve Shipping Practices stress that your car could be stolen at any
Selling at your parts counter alone isn’t time, insurance companies now appear to
enough to meet the demand for auto For dealerships taking steps to grow
parts. To turn auto parts sales into a strong their parts customer base beyond their be less willing to cover the vehicles.
source of revenue, you need to be selling local market, shipping auto parts can be
across multiple channels. the biggest hurdle to get over. Between The Drive spoke with Progressive
the cost of materials, the cost of shipping Insurance, which said it had stopped
Selling online doesn’t just mean selling carriers added insurance, and delayed issuing new policies to some Hyundai
your parts on your dealership website. You delivery times, it can be a nightmare and Kia vehicles. A spokesperson told the
should be selling on multiple channels, keeping track of all the moving parts to publication that “due to the theft risk that
including your dealership’s website, a get products shipped out. some Hyundai and Kia vehicles present,
designated web store, online marketplaces in many cases, it makes these vehicles
(i.e., Amazon and eBay), or a combination Dealers should simplify the shipping difficult to insure, so in certain areas of the
of all three. The more places you have process as much as possible. With the country, we have adjusted our acceptance
available to sell through, the better. Meet right tools from RevolutionParts, dealers criteria for new business.”
your customers where they’re already can print their own labels, use their own
shopping. branded packaging, ensure that the right The changes do not affect existing
parts are shipped to the right customers, policyholders, but it certainly puts a
Use Crowd-Sourced Services and ensure their packages are protected. damper on anyone hoping to grab a used
car and get it insured. The Drive’s staff
Retailers across all industries Get Ready for New reached out to several other insurers in
different areas of the country, discovering
are taking advantage of Opportunities in 2023 that several were unwilling to issue new
crowd-sourcing services. Ready to start the new year off right? Get policies. Progressive denied policies for
your eCommerce strategy in the water a Kia Soul in Denver, and news outlets
Companies like Uber, Lyft, and DoorDash now and grow your dealership’s business. in other cities have reported similar
offer cost-effective and convenient Gearing up for 2023 but want more outcomes.
delivery services that can fulfill same- insight? Download the 2022 consumer
day orders to millions of consumers. report to learn more about online parts Those that don’t deny insurance coverage
Automotive retailers are beginning to use buyers so you can include these insights in outright charge much more for the
these services to deliver auto parts to local your dealership’s 2023 strategy! n privilege. One driver told his local
buyers. newspaper in St. Louis that Progressive
would cover his car, but would charge
$350 monthly. n

MSIADA MISSISSIPPI DEALER Q1 2023 | 7