Pune, India, May 17, 2021 (GLOBE NEWSWIRE) —
The global e-commerce automotive aftermarket size is poised to expand at substantial CAGR during the forecast period as many brick-and-mortar businesses, especially those in the automotive industry, turned to e-commerce to support their businesses during the COVID-19 pandemic.
The COVID-19 pandemic gave a severe blow to several businesses as it led to temporary or permanent shut down of manufacturing plants, leading to grave supply chain disruptions. But this downtime turned into a growth opportunity for online businesses as it was exempted from the lockdown restrictions imposed by several governments across the globe.
Some of the trends that will encourage global e-commerce automotive aftermarket growth are listed below:
Role of third-party aftermarket retailers in Europe:
Direct-to-customer and third-party retailers are some of the e-commerce channels through which automotive parts can be sold to end-users. Out of these, the third-party retailers aftermarket segment will show strong growth prospects in Europe up to 2027. These retailers are quite useful when it comes to increasing the share of automotive aftermarket in the region as they can provide higher customer engagement and even give out heavy discounts on different automotive accessories and spare parts.
Access sample pages of the report, “Europe E-commerce Automotive Aftermarket Size Forecast” in detail along with the table of contents (ToC) @
Europe to see higher demand for replacement parts:
Replacement parts segment is the most vital and dominant one in e-commerce automotive aftermarket as these parts are regularly demanded by several customers. In fact, this segment held almost 80% of the market share in 2020. Parts like brake pads, rotor & drums and hydraulics & hardware will show promising growth during the forecast period in Europe. These parts are quite readily available and do not require the help of a mechanic while working with them.
There are several e-commerce companies that are now penetrating the hardware and automotive industries to deliver these components at the doorstep of the end-user. This results in higher convenience to customers and saves time and energy as well. All these factors will effectively contribute towards market growth.
Business-to-customer (B2C) services to increase:
Europe online automotive aftermarket share from B2C services segment will grow at a substantial rate of 16% CAGR during 2021-2027. The reason why this segment is expected to do so well in the future is because when businesses sell their products directly to consumers, they are eliminating unnecessary distribution channels like third-party sellers and wholesalers.
This helps reduce the overall cost of the products purchased by the customers. The practice even results in increased transparency of business and helps gain customer confidence as well. Another important benefit that will favor the growth of this segment is that when businesses are in direct touch with their customers, it helps them get direct and real-time feedback about their products and services. This helps them identify their areas of improvement as well.
Asia Pacific emerging economies witness increased sales:
There are several emerging economies in Asia Pacific region that will provide a strong growth platform for e-commerce automotive aftermarket. This is because these economies are going through a transition phase with the increasing penetration of internet services in these countries. These nations are witnessing a substantial rise in their disposable incomes as well which has led to tremendous sale of automobiles in the region.
International brands are setting up their automobile manufacturing and assembly plants in these countries, thereby driving the demand for spare parts and other automotive components in the region. The customers in Asia Pacific are quite price-conscious and will always opt for budget-friendly auto parts that would be used for repairing or replacement of the concerned part. This factor will drive customers to go for e-commerce platforms to buy these components at a cheaper rate.
Access sample pages of the report, “Asia Pacific E-commerce Automotive Aftermarket Size Forecast” in detail along with the table of contents (ToC) @
Digitization and DIY trends in Asia Pacific:
Digitization is growing at a sharp rate in different countries across Asia Pacific region. This will greatly benefit e-commerce automotive aftermarket in the future as more and more customers will prefer to buy auto parts from e-commerce platforms. They give customers a wide variety of products to choose from at a discounted price.
The DIY trend has caught heat as well as people are now trying to take the help of the internet to solve their automobile issues on their own. There are several companies that are rigorously working towards improving their CRM and vendor management services to increase their customer base.
Growing use of mobile wallets in North America:
Nowadays, a growing number of customers are using mobile devices over desktops to make online purchases. According to North America e-commerce automotive aftermarket statistics, more than 50% of the virtual traffic came in from mobile devices alone. This has prompted several industries including automotive to develop mobile wallets to make quick online payments. These wallets ensure higher data security and simpler and more secure check outs.
Major companies like Google Pay, PayPal, Samsung Pay and Apple Pay are focusing on creating technologies that make transactions and check-outs a much simpler process. These factors will reinforce the sale of automotive components and parts in North America through online media.
Access sample pages of the report, “North America E-commerce Automotive Aftermarket Size Forecast” in detail along with the table of contents (ToC) @
FTC guidelines in the U.S. will boost e-commerce automotive aftermarket:
The Federal Trade Commission (FTC) in the U.S. had issued some guidelines for companies to adhere to, while conducting online business. Cross-border e-commerce transactions are effectively regulated by the FTC to ensure fair business practices and overall data security. These guidelines got the approval from 29 nations including Germany, the U.S., Canada, Australia and Japan.
The FTC will regulate all e-commerce transactions to ensure that the customer is protected from any kind of fraudulent activities by a company. The CAN-SPAM Act, 2003 helped establish strict standards for companies if they were engaging in e-mail marketing. B2C services will benefit small and medium-scale businesses as well as they can be empowered to start their own business online, and this can greatly benefit their business performance and revenue.
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