Partnerships enable the online sale of auto parts
It’s hard to sell auto parts online if buyers can’t install them themselves.
Seeing an opportunity to serve these customers, the e-commerce platform parts identifier began partnering with tire shops that would install the tires it sells.
Previously, the company mainly sold automotive parts and accessories to DIY enthusiasts. Thanks to the new partnerships, it can now also sell tires to customers who would prefer a professional installer to “do it for me”.
Building an omnichannel experience
The company announced on April 19 that it added 5,000 new locations to its tire installation network in the first quarter, bringing the total number of participating installers to more than 7,000.
“To complement our existing strength in the DIY segment, we continue to create an omnichannel customer experience to attract customers in the industry’s more than $225 billion do-it-for-me customer segment,” said said the CEO of PARTS iD. Nino Ciappina said during the quarterly earnings call on Tuesday, May 10.
The installation network bolsters the company’s growing line of repair and service parts, which it offers as well as performance parts and accessories.
“It enriches the tire shopping experience,” Ciappina said. “Additionally, we are now able to extend this initiative to categories other than tires.”
Enable customers to narrow the spectrum of value
During the call, Ciappina also highlighted challenges that could impact the sale of vehicle products. He noted that consumer spending on accessories had been hurt by widespread inflation and a delay in issuing income tax refunds, which historically benefited the company’s performance earlier in the year. .
Compared to the first quarter of last year, PARTS iD’s net income decreased by 13%. Ciappina attributed this in part to the fact that in the first quarter of 2021, a record amount of government stimulus fueled outsized consumer discretionary spending. Compared to the “more normal” first quarter of 2020, revenue was up 34%, Ciappina said.
For customers who are hesitant to buy due to rising prices, PARTS iD’s platform and call center representatives offer low-cost options. Ciappina said the company’s just-in-time inventory model, with more than 1,000 integrated suppliers, allows it to offer buyers a wide range of choices.
“A notable and clear advantage of our platform business model is the breadth of similar products available for a consumer to trade across the value spectrum of products as prices rise,” Ciappina said. “By providing customers with options across the value spectrum during times like this, we can capture sales that competitors with a store-and-ship-only model may lose due to their product assortment and limited options.”
Anticipate results similar to the pre-pandemic period
Looking ahead, Ciappina said the macroeconomic environment remains dynamic and difficult to predict. The first quarter presented the same inflationary pressures and supply chain challenges as the previous quarter. Still, the company believes that interest and demand for the automotive aftermarket remains healthy.
To meet demand, PARTS iD continues to add more aftermarket parts as well as products for the other seven adjacent vertical markets the company serves, including boats, motorcycles and powersports.
“As we move forward,” Ciappina said, “we anticipate revenue trends that more closely reflect the pre-pandemic period, but layered with adjustments for product mix change to account for higher demand. strong this year repair products right now. ”