What are automotive aftermarket parts? This is a question that many people don’t know the answer to. Statistics show that auto parts personal usage reached an all-time high in June 2020, when it topped $50 billion for the first time. July was $49.884 billion, and August rose to $50.303 billion. In June, consumer usage of aftermarket tires hit a new high at $35.504 billion.
In 2022, the online auto part and component market will reach $26.1 billion in North America. It will be up by more than 40% from 2020. In 2022, the light-duty vehicle aftermarket market is expected to be around $341 billion. The automobile aftermarket/auto care sector, which includes medium and heavy-duty vehicles, is anticipated to be about $439 billion in 2022.
Historically, the auto parts business has expanded at a rate of around 3.5% to 3.9% each year. However, the auto parts eCommerce industry has been growing at a compound annual growth rate of about 20%. To put it simply, the automotive aftermarket sector is booming.
In this article, we’ll be discussing automotive aftermarket parts and how they differ from original manufacturer (OEM) parts.
Automotive Aftermarket vs. OEM Parts and Accessories
Automotive aftermarket parts are defined as “any components or accessories that are not part of the original equipment manufacturer’s product offering.” In other words, automotive aftermarket parts are anything you could add to your vehicle that wasn’t included when it was first manufactured.
One of the main questions that automotive aftermarket parts and accessory retailers face is whether to sell OEM or aftermarket products. There are pros and cons to both options, which we will explore in more depth below.
OEM, or original equipment manufacturer, automotive parts are made by the same company that manufactured your vehicle. Aftermarket automotive parts, on the other hand, are made by companies other than the ones that made your vehicle. They are usually made by a third-party company, and they are designed to improve the performance or appearance of the vehicle.
There are many benefits to selling automotive aftermarket parts and accessories, but there are also some disadvantages that you need to be aware of.
The Benefits Of Selling Automotive Aftermarket Parts And Accessories
When it comes to selling auto parts and accessories, it’s important to be aware of both the pros and cons of dealing with aftermarket components. Below are some of the most important.
The Automotive Aftermarket Sector Is On The Rise
As mentioned in the introduction, the automotive aftermarket sector is booming. This is due to several factors, such as the fact that people are holding onto their vehicles for longer and driving more miles than ever before. This means there is a greater demand for automotive aftermarket parts and accessories, as people are looking to keep their vehicles in good condition for as long as possible.
Another reason why the automotive aftermarket sector is doing so well is that there are more options available than ever before. In the past, people didn’t have as many choices when it came to automotive aftermarket parts and accessories. Nowadays, however, there are hundreds of different companies that sell automotive aftermarket parts and accessories, which gives consumers a lot of choices.
Wider Selection of Products
One of the main benefits of selling automotive aftermarket parts and accessories is that you can offer a wider range of products to your customers. OEMs, or original equipment manufacturers, usually only offer a limited selection of parts and accessories for each vehicle.
Third-party manufacturers usually look to enter the market with new and innovative components and accessories that OEMs don’t offer. This gives automotive aftermarket retailers the opportunity to provide unique products that their customers can’t find anywhere else. This means that if your customer is looking for something specific, they may not be able to find it from the OEM. They will, however, be able to find it from an automotive aftermarket retailer.
Another benefit of selling automotive aftermarket parts and accessories is that you can often offer them at a lower price than the OEM. This is because aftermarket companies don’t have the same overhead costs as OEMs. They also often produce parts in bulk, which helps to keep costs down. It’s also worth mentioning that insurance companies prefer to deal with aftermarket parts since these tend to cost less than their OEM counterparts.
More Opportunities To Specialize
Another benefit of selling automotive aftermarket parts and accessories is that you can target a specific niche market. For example, if you are passionate about classic cars, you could sell parts and accessories for classic cars. This would allow you to stand out from the competition, as few retailers specialize in classic car parts and accessories.
Better Third-Party Customer Service
Selling automotive aftermarket parts and accessories is that you can offer a higher level of customer service than the OEM. Aftermarket companies are usually more responsive to customer needs and often have better warranty policies. This means that your customers will be more likely to come back to you in the future if they have any problems with the products they’ve purchased.
The quality of the parts varies depending on the component that must be replaced. There is also an independent testing organization called the Certified Automotive Parts Association (CAPA) that tests and certifies replacement components. If you discover their seal on a replacement part, you can be confident it has been tested to satisfy or exceed their requirements in terms of fit, safety, and quality.
The Drawbacks Of Selling Automotive Aftermarket Parts And Accessories
Now that we’ve discussed some of the benefits of selling automotive aftermarket parts and accessories, let’s take a look at some of the disadvantages.
The quality of third-party aftermarket parts and components enters in both the pros and cons columns. While most are top quality, aftermarket parts are not all made equal or by the same manufacturer. You may come across low-quality products from time to time.
If the components haven’t been tested, it’s harder to assess their quality. However, if a component does not fit your vehicle, your automobile insurance provider might reimburse you for its replacement at no extra cost. It may be simpler to distinguish an OEM part from an aftermarket one for cosmetic items like bumper covers, but functionally they should perform similarly.
Almost all OEM parts come with some sort of warranty, which is usually one year. Aftermarket components, on the other hand, may or may not have a warranty. It’s against the law for businesses to try to invalidate your automobile warranty because you use aftermarket parts.
If you believe that a warranty claim was unfairly rejected, you can file a complaint with the FTC. When selling automotive aftermarket parts, you should make it clear to customers that the warranty is offered by the manufacturer and not by your company.
Many Buyers Are Unaware of Their Existence
Some automotive aftermarket parts are so well made that they could fool a layperson into thinking they’re OEM. Most people, however, are not familiar with automotive aftermarket parts and accessories. This lack of awareness can be a disadvantage for sellers since it means that you have to work harder to educate potential customers about the benefits of aftermarket parts.
In fact, most car owners are unaware that aftermarket parts exist, let alone that they can use them on their own vehicles. Fortunately, however, fitment data tools allow potential buyers to quickly and easily find automotive aftermarket parts that fit their vehicle.
If you want to learn more about automotive aftermarket parts and how to run a successful business that operates in the sector, then feel free to check out our other blog posts or contact us directly.