From One Order a Day to Six-Figure Sales:
How River City Ford Turned Their Parts Department Into a Profitable Online Powerhouse
When you think about a dealership’s parts department, what comes to mind? For many, it’s the unsung hero of the business. But in recent years, the parts department has had to rise to meet the demands of a changing market. The parts department of River City Ford in Winnipeg, Manitoba, led by Kelly Marsden, has truly set itself apart by embracing online sales channels and turning their parts department into an extremely profitable business.
Kelly’s journey into eCommerce was born out of necessity. Like many other forward-thinking parts professionals, he realized that there was a goldmine of opportunity waiting online. Now it’s become a model of success.
Starting with a Leap of Faith
It all started when COVID-19 hit. Like many businesses, the dealership was forced to pivot. While the pandemic reshaped the entire automotive industry, it also opened Kelly’s eyes to the irresistible opportunity online parts sales presented. The timing couldn’t have been better. “We were supposed to be done with a renovation during COVID, but everything changed. So, it really ended up being the perfect time for us to launch into eCommerce,” Kelly shared
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At first, the team didn’t have much more than a few orders trickling in each day. Kelly laughed when reminiscing about the early days, saying, “I still have a picture of our first shipment going out. It was just me packing things up on my desk, one order at a time.”
But things have changed. Fast forward to today, and the dealership now has a fully functional shipping station equipped with everything from strapping machines to scales, which help streamline their shipping processes. “Every six months, we evolve. We just buy one extra piece of equipment, and each time we learn how to do it better and faster,” Kelly said. They even added branded tape with their website on it, making sure their packages stand out when they travel across the country, and sometimes even internationally.
Growing Revenue and Gross Profit
One of the most impressive aspects of Kelly’s online strategy is how he managed to significantly grow the parts department’s revenue and gross profit without the need to add headcount. In fact, the approach Kelly took was all about maximizing the existing resources and using technology to boost productivity.
“People often think that growth requires adding more people, more hands on deck,” Kelly said. “But for us, it was about working smarter, not harder.” Instead of hiring more staff to handle the increase in online orders, Kelly’s team optimized their existing operations. They streamlined the shipping process, enhanced their product listings, and learned how to use automation tools.
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Now Kelly’s online parts business generates multiple six-figures per month and in turn, he has hired dedicated eCommerce employees. He also brought in an in-house web developer to help improve the website and get a competitive edge. “I’m probably the only parts department that has a web developer full-time,” Kelly said. “We just saw so much opportunity to add things to our site, so we hired a developer to get ahead of the game.”
The Importance of a Great Team
So, what makes this team so successful? “It’s about having the right mindset and being proactive,” Kelly said. “My team knows that they have the power to control the process. They’re empowered to find solutions, help customers, and make things happen.” Kelly emphasized that the success of their eCommerce business isn’t just about the RevolutionParts platform; it’s about the people behind it. His team is energetic, creative, and constantly looking for ways to improve and make the process easier for both themselves and their customers.
Watch This “Surprising Customer Loyalty” 45-Second Clip:
In fact, Kelly credited a lot of their success to customer loyalty, which has been a pleasant surprise. “We were expecting a lot of one-and-done orders, but we’re seeing so many repeat customers,” he shared. “They’re coming back and asking for the same people they spoke with before. It’s all about building that trust and relationship with customers.”
Looking to the Future
A key milestone in their journey was their expansion to eBay, a major step forward for their online presence. “The integration with eBay has been seamless, and it’s been a huge jump for us,” Kelly explained. “At one point, we had $90 million worth of inventory listed on eBay. It’s been one of our best decisions.” Kelly pointed out that, despite the challenges of managing an online marketplace, the benefits far outweigh the hurdles.
What’s next for this powerhouse parts department? “We’re looking to add more brands to our inventory and build partnerships with other dealerships that don’t fully understand eCommerce yet,” Kelly shared. “There’s strength in numbers, and we believe that by collaborating, we can all succeed.”
Their vision for the future includes not only increasing their product offerings but also working with other smaller dealerships to create a more robust, collaborative parts ecosystem. “We have the ability to reach customers all over the world,” Kelly said. “If we work together, we can grow even faster.”
eCommerce Isn’t Just for Big Players
Kelly’s journey is a perfect example of how a dealership can leverage eCommerce to create a profitable, scalable business. From starting with just one person packing orders to building a full-fledged online operation, the dealership has come a long way. And for Kelly, it’s more than just about selling parts—it’s about building relationships, trying new things, and constantly looking for ways to improve.
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The moral of the story? eCommerce isn’t just for the big players. With the right mindset, a dedicated team, and a willingness to learn and adapt, any parts department can thrive in the online world.
With a little bit of creativity, a great team, and the right mindset, the sky’s the limit.
Dont Miss Out!
Discover how RevolutionParts can help you boost your online parts sales and streamline your operations. Schedule your free demo today and take the first step towards transforming your parts department.