In today’s automotive market, dealership parts departments face increasing pressure to maximize revenue. In a recent FixedOps Roundtable, Ted Ings brings together industry experts Jim Sabino (Fixed Ops Director at All American Ford), Shon Kingrey (VP of Fixed Ops at Keyser Automotive Group), Mark Mickens (Director of Retail Services at ES3), and Mike King (eCommerce specialist at RevolutionParts), to discuss strategies for boosting parts department sales with minimal hassle.
By embracing eCommerce and simplifying operations in the parts department, dealerships can grow their parts sales efficiently and profitably. Here are three major takeaways that highlight how to do just that.
eCommerce made easy, efficient, and effective:
How eCommerce is a simple, effective way to grow sales.
Tapping Into the DIY Market:
the DIY scene is exploding—but you need to be online.
Endless Opportunities, Minimal Investment:
Online selling is a low risk and low investment channel to get paid right away.
eCommerce: easy, efficient, and effective
According to King and Mickens, one of the most compelling reasons for any parts manager to consider eCommerce is the simplicity of integrating it into a dealership’s existing parts operation. King emphasized that when dealerships start selling parts online, they don’t need to overhaul their entire operation or expand the workforce. “You already have industry experts in your parts room, you just need to give them another tool,” King said. Instead of bringing in new hires with eCommerce expertise, dealerships can rely on their existing staff to manage the platform and handle orders. This “crawl, walk, run” approach, as King put it, allows dealerships to gradually integrate their online operations while keeping their current team intact.
Mickens highlighted the scalability of adopting an online platform: “Once you build out your storefront, it just becomes another function inside your parts department,” he explained. Rather than creating a completely separate department for online sales, the parts team can seamlessly add eCommerce into their normal workday. This makes eCommerce simple and manageable for dealerships that might be hesitant to dive into the online market due to perceived complications or cost. With the flexibility of eCommerce, dealerships can transition smoothly into the digital space without disrupting their day-to-day operations.
Tapping Into the DIY Market
The rise of the DIY (do-it-yourself) market is a major driving force behind the need for dealerships to establish a strong online presence. Mickens pointed out that, statistically, the [DIY] market has grown significantly, with 59% of parts sales now coming from those purchases. “85% of DIY shoppers will hit a manufacturer’s website first, before they buy,” Mickens added. Customers looking to service their own vehicles are more likely to visit a dealer’s online platform for parts than to seek out an independent retailer. Dealers who don’t have an online storefront are missing out on this rapidly growing segment of the market.
Sabino echoed Mickens’ point, noting that the convenience of online shopping is a game changer for both consumers and dealerships. “You don’t have to be open at 7PM; someone can visit your website whenever, purchase a part, and the next day you can fulfill the order,” Sabino said. With more consumers shopping online, the expectation for 24/7 access to parts is becoming the norm. For dealerships that haven’t yet embraced online sales, this presents a significant missed opportunity.
Providing a seamless online shopping experience for DIY customers helps establish the dealership as a trusted destination for parts. As Mickens pointed out, many consumers begin their search on the manufacturer’s website but often leave due to poor user experience. By optimizing the dealership’s online presence with an easy-to-navigate storefront, clear product descriptions, and features like ‘items frequently purchased together,’ dealers can create an environment that encourages more customers to shop online at their own convenience, making it a competitive advantage.
Mark Mickens on the advantage of eCommerce:
“It’s a really good way to increase your bandwidth of what you’re able to sell without having to add on extra staff. You won’t have to add a personal expense to this. It can be meted out over your current staff- it’s efficient, and it will make you money.”
Endless Opportunities, Minimal Investment
For many dealerships, the idea of selling parts online might seem overwhelming, especially with concerns over cost and resource allocation. Kingrey posed the critical question: “What’s in it for me?” He’s clear that for parts managers, it’s all about seeing a return on investment, especially when seeking the GM’s approval on new initiatives. “The GM holds the checkbook,” Kingrey pointed out, so it is up to an ambitious leader to find a cost-effective strategy that doesn’t require huge upfront investments or a major overhaul of the current operation.
Both King and Mickens stressed that the costs involved are relatively low, especially when compared to the potential return on investment (ROI). “The costs are negligible,” King said. For savvy dealers like him, he knows it is a small price to pay for a platform that opens up new revenue streams without the need for massive upfront costs or extra staff.
Mike King on ROI:
“A dealer running a successful service lane has no problem leasing out a new $100,000 front-end machine because he knows it will return a profit. eCommerce is exactly the same; it’s a tool. When you use the tool to its capacity, it will return profits.”
Mickens highlighted that eCommerce allows dealers to streamline their operations and avoid the hassles of traditional wholesale, where receivables can be a constant source of stress. “The money I had out on the street and receivables kept me up at night,” Mickens recalled. “The one thing I love about the online parts business is that the customer pays for it before I send it.” The online model allows dealers to collect payments upfront before sending out parts, creating a more efficient and predictable cash flow. As a result, sales are more profitable and less risky, reducing the potential for outstanding debts and late payments from customers.
The Path Forward
Incorporating eCommerce into your parts department isn’t just a way to increase sales—it’s a way to modernize your business and adapt to shifting consumer expectations. By leveraging existing staff, embracing the growing DIY market, and taking advantage of low-cost platforms with high potential returns, dealerships can grow their parts sales without overwhelming their current operations. With minimal upfront investment and significant revenue potential, now is the time for dealerships to step into the world of eCommerce and reap the rewards.
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