Blog Archives - RevolutionParts - Sell Parts and Accessories https://www.revolutionparts.com/category/blog/ Learn about leading platform that drives more OEM accessory and part sales. Wed, 11 Dec 2024 17:10:46 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.2 https://www.revolutionparts.com/wp-content/uploads/cropped-RP-FAV-32x32.png Blog Archives - RevolutionParts - Sell Parts and Accessories https://www.revolutionparts.com/category/blog/ 32 32 Cyber Weekend 2024: RevolutionParts Dealers Lead the Charge in Online Parts Sales https://www.revolutionparts.com/blog/revolutionparts-dealers-lead-the-charge-in-online-parts-sales/ Wed, 11 Dec 2024 01:07:53 +0000 https://www.revolutionparts.com/?p=337293 The post Cyber Weekend 2024: RevolutionParts Dealers Lead the Charge in Online Parts Sales appeared first on RevolutionParts - Sell Parts and Accessories.

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As 2024 draws to a close, one thing is clear: the online parts market is booming. Despite the ongoing challenges from inflation, supply chain issues, and the continued effects of the UAW strike, RevolutionParts dealers demonstrated that selling parts online isn’t just an option—it’s a proven, profitable strategy. And this year, Cyber Weekend (Black Friday through Cyber Monday) was no exception.

Record-Breaking Success

RevolutionParts dealers came through with impressive performance, driving $6,233,904 in parts and accessories sales during the 2024 Cyber Weekend. This massive total reaffirms that online parts sales are a significant revenue opportunity for those who seize it. Whether it’s a tough year or a smooth one, online sales remain a core revenue stream for dealerships, providing stability and growth in an unpredictable market.

These results are a direct testament to how dealers are leveraging RevolutionParts’ platform to reach more customers, sell high-ticket items, and tap into a growing online market. With a data-driven and easy-to-use eCommerce platform, RevolutionParts helps dealerships future-proof their businesses by selling parts and accessories online—and they’re doing it with ease.

"Some people in my team weren’t sure about it at first. But now they’ve changed their minds—especially after we come in on a Monday morning and have 120 orders in the queue!"

Bill Green, Parts Manager at Stillwell Ford

Cyber Weekend Top-Selling Brands

While RevolutionParts dealers excelled across the board, some brands really stood out in Cyber Weekend 2024:

The standout parts this year were high-value, high-demand items, showing that consumers are increasingly comfortable purchasing big-ticket items online. Some of the top-selling parts include:

Mirror Assembly
Axle Assembly
Catalytic Converter
Alloy Wheels
Rotor
"If you’re not interested in growing your business, then don’t bother (selling parts online). But if you are, this is a great way to do it. You can start as small as you want and grow at your own pace."

Bill Green, Parts Manager at Stillwell Ford

The significant demand for expensive items like axle assemblies, catalytic converters, and alloy wheels reveals that consumers are more than willing to spend on parts through online channels.

RevolutionParts Tools and Features

RevolutionParts continues to arm dealers with the tools they need to succeed in the eCommerce space. With an easy-to-use platform that integrates seamlessly with a dealership’s operations, RevolutionParts helps dealers easily manage their parts catalog, fulfill orders, and track sales—all while expanding their market reach.

Key features that drive success:

  • Webstore Integration: RevolutionParts dealers enjoy dedicated online stores that are separate from their primary dealership websites, creating a user-friendly, branded experience for customers.
  • Marketplaces: Sellers on platforms like eBay and Amazon can seamlessly integrate their catalogs with RevolutionParts’ tools, further extending their reach.
  • Catalog Management: Automatic updates mean dealerships always have the latest parts available for customers.
  • Order Management: Streamlined order processing helps keep track of sales, shipping, and inventory.

With RevolutionParts, dealerships have the infrastructure to scale and manage their online presence with ease—empowering them to drive revenue and connect with digital customers during major shopping events like Cyber Weekend.

The Growing Necessity of Parts eCommerce

Looking ahead to 2025 and beyond, the auto industry is set to see an explosion in online parts sales. According to NADA, online sales of auto parts and accessories are projected to grow by 50% over the next five years. This growth signals a major shift in how consumers shop for parts—and dealerships need to adapt.

As consumer expectations evolve, the convenience and availability of online shopping continue to drive demand for auto parts. If your dealership isn’t selling parts online yet, now is the time to start. 

"Selling parts online is a trust fall, but it’s the best thing you’ll ever do."

Scott Lindwall, Fixed Ops Director at Bommarito Ford

Looking Toward Success in 2025

Heading into 2025, the data is clear: online sales are a necessity for dealerships in 2025. RevolutionParts dealers are already proving that online parts and accessories sales can bring in substantial revenue, as in the impressive performance during Cyber Weekend.

With a platform designed to make online sales simple, scalable, and profitable, RevolutionParts is leading the charge in helping dealerships secure their future and drive even more revenue from parts eCommerce.

“We’ve grown our part sales by 400% within a year (by selling parts online)."

Ryan Meachem, Parts Manager at Hyundai of the Shoals

Ready to make 2025 your most profitable year yet?

Tap into the booming online parts and accessories market today—RevolutionParts can help you get there.

The post Cyber Weekend 2024: RevolutionParts Dealers Lead the Charge in Online Parts Sales appeared first on RevolutionParts - Sell Parts and Accessories.

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The Hidden Costs of an Inefficient Parts Department on Your Dealership https://www.revolutionparts.com/blog/the-hidden-costs-of-an-inefficient-parts-department-on-your-dealership/ Thu, 14 Nov 2024 09:23:10 +0000 https://www.revolutionparts.com/?p=337036 The post The Hidden Costs of an Inefficient Parts Department on Your Dealership appeared first on RevolutionParts - Sell Parts and Accessories.

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Achieving 100% fixed absorption is a must for the long-term success of your dealership—especially in the midst of plummeting vehicle profitability and growing uncertainty around the future of service. However, this goal continues to be a significant challenge for many dealerships, as the average absorption rate for U.S. dealerships sits around 60%. The solution is hiding in plain sight: your parts department. 

Parts departments in particular can create serious financial strain when managed inefficiently, leading to lost opportunities, increased costs, and decreased profitability. While sales departments have typically been viewed as the star of the dealership, the strongest armor protecting your dealership’s success is in the fixed ops department. But only if you have the tools and processes in place to reach your full revenue potential.

Let’s explore the hidden costs associated with dealership parts inefficiencies. Plus, we’ll share how modernizing your processes can boost your dealership’s profitability and customer satisfaction.

Finding Inefficiencies in the Parts Department

Operational inefficiencies have a snowball effect on dealership profitability. Here are some of the most common inefficiencies that dealerships face:

Poor Inventory Management = Lost Sales Opportunities

Effectively managing parts inventory is no walk in the park. A lack of real-time inventory management will lead to significant issues. Dealerships may overstock slow-moving parts while running out of high-demand ones. This leads to delayed service jobs, lost sales, and worse of all—losing customers to your competition. 

Outdated Ordering Processes = High Obsolescence Costs

Manual or outdated ordering processes result in slow fulfillment times and errors in part identification. These inefficient inventory practices lead to high levels of obsolete stock. This leads to unhappy customers and creates a devastating burden on your dealership’s budget. When you’re dealing with the razor thin margins of the modern dealership, missteps like this really hurt. 

Lack of eCommerce = Failure to Meet Customers Where They Are

Many parts departments still operate with traditional sales methods, limiting their customer base to walk-ins, phone orders, and service lanes. There’s no way around it—customers prefer to buy parts online, expecting an easy shopping experience that dealerships without eCommerce simply can’t deliver. If you don’t embrace eCommerce now, it will continue to result in more and more lost customers, eventually resulting in your dealership getting left behind. 

In fact, according to our 2023 eCommerce Shopper Behavior Report, a total of 143.2 million unique users visited web stores powered by RevolutionParts in just one year, from March 2022 to March 2023. If you aren’t currently selling parts online, that’s a lot of customers to be missing out on…

The Vital Role of the Parts Department in Fixed Operations

A well-managed parts department is key to the success of fixed operations. As Tully Williams famously said: 

“Without great parts people, without great parts inventory there is no service department. HOURS are sold because of parts, parts sell HOURS.” 

This quote highlights the symbiotic relationship between the parts and service departments. When parts are efficiently handled, service operations run smoothly, leading to increased revenue through additional labor hours.

Here’s how an efficient parts department can enhance service operations:

  • Reduced service delays: Quick access to the right parts ensures that service jobs can be completed on time.
  • Increased technician productivity: When technicians have the necessary parts available, they can focus on completing jobs rather than waiting on parts.

Boosted dealership profitability: By optimizing parts management, dealerships can sell more labor hours, contributing to higher fixed absorption rates.

Embracing Modern Automotive eCommerce Solutions

If you’re like 95% of U.S. dealerships, you know there’s no room for error, which highlights the need to maximize the revenue impact of every department in your store. One area with a typically underutilized power source is your parts department. To tap into your parts department’s revenue potential, adding an eCommerce channel is a must. Here’s why:

Reach a Larger Market

An eCommerce platform allows your dealership to reach customers far beyond your local market. Can any of your other departments do that on a daily basis? By selling parts online, you can tap into a national (and even global) customer base, increasing sales opportunities and supersizing your dealership’s footprint.

Streamline Inventory Management

With an eCommerce platform specifically designed for dealerships, you can access the best, most accurate and up-to-date brand catalogs available. This translates to real-time inventory management which means you can sell any part at any time. When you sell parts this way, you get paid before you actually have to purchase the part. That means no financial risk and no threat of the part becoming obsolete. It also improves accuracy in tracking sales trends by providing data insights.

Enhance your Customer Experience

There’s a huge DIY market out there that values genuine parts. And those customers expect fast, easy, and transparent online shopping experiences. eCommerce enables customers to browse available parts, check prices, and place orders from anywhere, at any time. It also simplifies order tracking and communication, improving customer satisfaction.

As online sales of automotive parts and accessories are expected to grow by nearly 50% between 2024 and 2030, embracing eCommerce has never been more of a must-do.

Success Stories That Speak Volumes

BMW of West Chester

BMW of West Chester saw huge success after integrating eCommerce into their parts department. They were able to clear out obsolete inventory and increase their parts sales, all while providing a better experience for their customers. 

The dealership now reports nearly $200K in online parts sales every month. Their story is a perfect example of how eCommerce can transform a parts department from a cost center into a profit generator.

Olympia Nissan

Olympia Nissan’s parts department, once considered a quiet corner of the dealership, has transformed into a significant revenue generator by shifting to an eCommerce-focused strategy using RevolutionParts. This transition helped boost their absorption rate and grow their monthly online orders to 465, generating $67,275.39 in revenue with an average order value of $144.68. Over time, Olympia Nissan’s online efforts have yielded an impressive $7.3 million in revenue and $1.2 million in gross profit.

The key to this success was the dealership’s decision to move away from platforms like eBay and Amazon, opting instead to focus on building their own customized web store through RevolutionParts. The flexibility and ease of use of the platform allowed the dealership to streamline its parts operations and tap into broader markets.

Modern INFINITI of Winston-Salem

Modern INFINITI’s transition to online parts sales through RevolutionParts has been a seamless and highly successful experience. Selling online helped the dealership clear aging and obsolete parts quickly, while leveraging manufacturer-backed promotions boosted traffic and visibility. Flexible shipping options further increased profitability, allowing them to choose cost-effective methods that align with their goals.

In just 30 days, Modern INFINITI’s online store achieved impressive results: 260 orders, over $111K in sales, and a gross profit of $6,367. Even with competitive online pricing, they outpaced their wholesale department’s performance. By opening the store to everyday consumers, not just repair shops, Modern INFINITI expanded their customer base, increased traffic, and improved customer satisfaction.

Leveraging Data and Digital Tools for Better Decision-Making

To improve efficiency and profitability, dealerships should look to digital tools and data-driven decision making. Real-time data allows parts managers to track key performance metrics, make informed decisions, and continuously optimize operations. Here are some key metrics your parts department should be tracking:

  • Inventory Turnover Rate: How often your inventory is sold and replaced over a certain period. A higher turnover rate suggests efficient inventory management.
  • Obsolescence Percentage: The percentage of your inventory that consists of obsolete parts. A high obsolescence rate indicates poor inventory management practices and wasted resources.
  • Fill Rate: How often the parts department can fill customer or service department orders without delays. A low fill rate indicates dealership parts inefficiencies in inventory management.
  • Gross Profit Margin: The percentage of revenue that exceeds the cost of goods sold. A healthy gross profit margin indicates that the dealership is maintaining profitable pricing strategies and managing costs effectively. Monitoring this helps ensure that while parts are competitively priced, the dealership is still making a sufficient profit.
  • Average Order Value (AOV): The average dollar amount spent each time a customer places an order. Increasing AOV can be a sign of effective upselling and cross-selling strategies, such as offering complementary products or bundling parts. 
  • Backorder Rate: How often the dealership’s parts are on backorder. A high backorder rate can lead to customer dissatisfaction and lost sales. By closely monitoring this metric, parts departments can work toward optimizing stock levels and ensuring timely fulfillment.
  • Customer Satisfaction Score (CSAT): This metric gauges customer satisfaction with their purchasing experience. Whether it’s based on timely delivery, the accuracy of orders, or the quality of customer service, tracking CSAT is crucial for building customer loyalty and ensuring repeat business in the competitive auto parts market.
Digital Tools for Parts Department Optimization

Inventory Management Systems:
These systems provide real-time insights into inventory levels, helping reduce the likelihood of overstocking or running out of parts.

Automated Pricing Tools:
Automating pricing adjustments based on demand and availability ensures that parts are competitively priced while maintaining profitability.

Customer Relationship Management (CRM) Platforms:
CRMs can track customer interactions and help streamline the order process.

Streamline Your Parts Operations & Boost Dealership Profitability

Dealership parts inefficiencies carry hidden costs that can quietly erode your dealership’s profitability. From lost sales and outdated inventory to customer dissatisfaction, the risks of an inefficient parts operation are significant. However, by adopting modern automotive eCommerce solutions, dealerships can transform their parts department into a powerful driver of revenue and customer loyalty.

If you fail to modernize, your dealership will continue to face unnecessary financial strain. Meanwhile, those that embrace eCommerce and optimized processes will thrive. RevolutionParts is here to help you make that transformation. Streamline your parts operations, boost dealership profitability, and ensure your long-term success by exploring the modern automotive eCommerce solutions we have to offer.

Maximize Absorption Rate and Future-Proof Your Dealership

Unlock your fixed ops revenue potential—download the Ultimate General Manager’s Roadmap to Maximize Absorption Rate for proven tips.

The post The Hidden Costs of an Inefficient Parts Department on Your Dealership appeared first on RevolutionParts - Sell Parts and Accessories.

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The Post-Election Automotive Landscape: Why Now is the Time to Sell Parts Online https://www.revolutionparts.com/blog/the-post-election-automotive-landscape-why-now-is-the-time-to-sell-parts-online/ Wed, 06 Nov 2024 21:08:41 +0000 https://www.revolutionparts.com/?p=336992 The post The Post-Election Automotive Landscape: Why Now is the Time to Sell Parts Online appeared first on RevolutionParts - Sell Parts and Accessories.

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Following one of the most impactful presidential elections in U.S. history, there’s a mix of uncertainty and opportunity in the automotive industry. Whether you’re a dealership owner, a parts manager, or just someone passionate about the auto sector, you might be feeling the weight of this moment. It’s understandable—the political landscape has shifted, and with it, the future of our industry poses a looming question mark. But here’s the good news: this uncertainty presents a unique opportunity, especially for those ready to embrace a reimagined, modern dealership—one that prioritizes the profit power of fixed ops, specifically through selling parts online.

Key Challenges for Dealerships

As we move into a new presidential term, automakers and suppliers are likely to calibrate their strategies based on the election outcomes. Concerns over regulations, trade policies, and competition are top of mind. You might be asking yourself, “How can I make sure my dealership remains profitable?” The answer lies in maximizing every selling channel available to the modern dealership. One underutilized gold mine is in your parts department and it’s online sales. 

If you’re nodding along, thinking, “Yes, that’s exactly what I’m worried about!” then you’re not alone. The frustration of making the right decisions following these shifts can be overwhelming, especially as we enter uncharted territory, but luckily, there’s a clear path forward.

The Opportunity for Online Sales

Now is the time to seize the moment. Selling parts online is virtually the only way for your dealership to reach a nationwide audience of shoppers. You should tap into this massive (and growing) customer base while your competitors are still figuring out their next steps. As we emerge from the uncertainty of the election, you can position your business to grow.

But what makes online auto part sales such a critical move for your dealership right now? Let’s break it down.

Adapting to Changing Market Conditions

With the recent election, the regulatory environment is bound to change, influencing emissions standards, fuel economy, and potential tariffs on imports. Automakers may face delays in adapting to these new rules, which can affect parts demand. By selling online, you can swiftly adjust your inventory and meet your customers’ evolving needs without missing a beat.

Picture this: a customer in South Carolina is searching for parts for a new electric vehicle model, and you’re ready with an online platform to showcase those items. Meanwhile, a driver in California is looking for a different part for their hybrid vehicle. While others are still figuring out how to respond, you’re already engaging both customers and closing sales coast-to-coast.

Selling parts online gives you the agility to adapt quickly. It positions you to meet changing market demands. In a time of shifting regulations and consumer preferences, being online means you can pivot as needed, keeping your profit centers strong.

Building a Foundation for Long-Term Success

This is the moment to proactively secure your dealership’s future. By establishing an online presence for your parts department now, you’re setting the stage for long-term success. As the auto industry evolves—through new tariffs, regulatory changes, and shifting consumer trends—your online sales strategy will help you navigate these challenges more effectively and more profitably.

“I can’t help but feel a sense of urgency as we step into this new chapter for the automotive industry. The stakes are high, and while the future may seem unclear, the potential for growth is undeniable. Setting your dealership up for online parts sales is a way to take charge of your dealership’s direction.”

— Mike King, parts eCommerce expert

This mindset is key as you think about your strategy for selling parts online. You have the chance to lead, to be proactive, and to stay ahead of the competition.

Selling parts online allows for quick adaptation. It opens new revenue streams and helps you meet customer demands with a seamless online shopping journey that keeps them coming back, so you can focus on building a resilient business ready to face whatever comes next.

Get in touch and let us know how we can help

The post The Post-Election Automotive Landscape: Why Now is the Time to Sell Parts Online appeared first on RevolutionParts - Sell Parts and Accessories.

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Why Maximizing Absorption Rate Should Be a Top Priority for Dealerships in 2025 https://www.revolutionparts.com/blog/why-maximizing-absorption-rate-should-be-a-top-priority-for-dealerships-in-2025/ Wed, 23 Oct 2024 20:42:49 +0000 https://www.revolutionparts.com/?p=336909 The post Why Maximizing Absorption Rate Should Be a Top Priority for Dealerships in 2025 appeared first on RevolutionParts - Sell Parts and Accessories.

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It’s no secret—the auto industry has been through a lot in recent years. Inflation, supply chain problems, and changing consumer expectations have left dealerships in a tough spot. Gone are the days when car sales could easily cover all the dealership’s expenses. Today, the average American only owns about nine cars in their lifetime, down from 13 a few decades back. Car owners hold onto their vehicles longer, usually around 5-7 years. With this shift, there’s a rising demand for reliable parts and consistent maintenance to keep these cars roadworthy for longer stretches. Dealerships that can pivot to meet these demands, particularly through their parts and service departments, will pull ahead. Those who don’t risk being left in the dust.

The Digital-First Consumer

Today’s buyers—especially Millennials and Gen Z—aren’t interested in spending hours at a dealership. They want digital convenience, and they want it now. In fact, nearly 60% of OEM auto parts buyers fall into these two generations, and this number is climbing. Think about that: over half of your parts-buying customers expect an online experience. For dealerships, this shift is as much an opportunity as it is a challenge. If you’re not meeting these digital-first expectations, there’s a good chance your competitors are.

Electric Vehicles:
Changing the Game for Parts and Service

Electric vehicles (EVs) bring another twist to the dealership world. They’re incredible for reducing fuel costs and emissions, but they don’t need as much traditional service. Without as many mechanical parts, EVs sidestep routine oil changes and engine repairs, which impacts revenue for dealerships relying on these services. Yet, EVs still need specialized care—like battery replacements and software updates. The rise of EVs may mean a lower volume of mechanical fixes, but it creates fresh demand for EV-specific parts and digital services, areas where innovative dealerships can thrive.

Mounting Financial Pressure and Profit Squeeze

Dealer margins on new cars are dropping fast as inventory levels bounce back. While dealers enjoyed margins close to 7% when cars were scarce, they’re now hovering around 3.2%. Front-end profit margins across dealerships are projected to slide another 10-15% from 2022 by the end of 2024, driven by mounting competition and waning demand. This is putting enormous pressure on dealerships to find alternative revenue streams fast.

Fixed Ops: The Reliable Profit Engine

This is where fixed ops comes in, providing the steady income that keeps a dealership afloat regardless of car sales trends. In fact, fixed ops has grown to cover an increasing portion of dealership expenses, jumping from 35% in 2010 to an estimated 65% by the end of 2024. With customers holding onto cars longer, they’re coming back for regular maintenance and parts, which means a constant revenue flow for dealerships savvy enough to tap into it.

So, if your dealership is serious about securing its future, boosting your absorption rate is non-negotiable. By maximizing your fixed ops revenue, especially within the parts department, you’re creating a sustainable buffer against the ups and downs of car sales.

Conclusion

To quote Wayne Gretzky, “I skate to where the puck is going to be, not where it has been.” The auto industry’s puck is already moving towards fixed ops. Dealership leaders who prioritize absorption rates now will thrive as you enter 2025.

In the end, fixed ops is about more than just revenue. It’s about building a stable future in an industry known for rapid shifts and unpredictability. By making fixed ops the powerhouse of your dealership’s strategy, you’re turning challenges into opportunities—and setting your team up for long-term success.

Maximize Absorption Rate and Future-Proof Your Dealership

Unlock your fixed ops revenue potential—download the Ultimate General Manager’s Roadmap to Maximize Absorption Rate for proven tips.

Get in touch and let us know how we can help

The post Why Maximizing Absorption Rate Should Be a Top Priority for Dealerships in 2025 appeared first on RevolutionParts - Sell Parts and Accessories.

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Top 8 Ways Selling Parts Online Empowers Your Fixed Ops Department https://www.revolutionparts.com/blog/top-8-ways-selling-parts-online-empowers-your-fixed-ops-departments/ Wed, 23 Oct 2024 20:42:13 +0000 https://www.revolutionparts.com/?p=336913 The post Top 8 Ways Selling Parts Online Empowers Your Fixed Ops Department appeared first on RevolutionParts - Sell Parts and Accessories.

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As costs continue to rise and many consumers are expressing increased sensitivity to pricing, many leaders within automotive dealerships find themselves searching every corner of their business for ways to drive revenue growth and maintain profit margins. Without a doubt, one of the biggest areas for opportunity is typically found within the parts and service department, more commonly referred to as “Fixed Ops.” 

In this article, we’ll take an in-depth look at how selling parts online can empower your fixed operations department to not only increase revenue but also reduce costs for your store.

1. Leverage Online Sales to Boost Overall Profit

Venturing into online parts sales creates a substantial new cash stream for your dealership as engaging with online shoppers not only expands your consumer base but also helps increase potential sales volume. By selling parts online, your dealership immediately gets access to a much broader market of potential buyers outside of the confines of your local market. For stores that have never ventured into online sales, this expanded market reach can significantly enhance your dealership’s overall profitability as it opens the doors for new customers to enter your business virtually while simultaneously enhancing the buying experience for existing customers in your local area. The potential upside to implementing online sales in your parts department makes it a crucial decision for any General Manager intent on improving a store’s P&L.

2. Embrace eCommerce to Expand Market Reach

One of the most significant advantages of internet component sales is the ability to break free from the geographical limitations of only selling locally. When selling online, your dealership is no longer restricted to catering solely to local clientele as an online parts store allows you to access customers on a national or even international scale. The broadened market reach allows you to engage a whole new set of prospective shoppers who may otherwise never visit your physical establishment, significantly enhancing your sales potential. eCommerce also serves as an excellent compliment to any digital marketing strategy as it allows for your marketing efforts to more quickly and effectively convert interested leads into real world customers.

3. Enhance Customer Convenience

Today’s online consumers have brought their expectations of seamless, digital-first experiences into the world of automotive parts purchasing. GMs who wish to see their stores thrive in this new economy will need to focus on meeting consumer’s heightened expectations of ease & convenience. By providing an online parts store, you are directly addressing their expectations and investing in repeat business. The convenience of 24/7 ordering, easy parts identification, and home delivery enhances customer satisfaction and fosters loyalty. In an age where customer experience may determine a dealership’s success or failure, offering such convenience is not just advantageous—it is imperative.

4. Mitigate Obsolete Inventory

All dealerships eventually face the challenge of having to deal with slow-moving or obsolete parts taking up valuable inventory space and capital. Selling parts online helps avoid having a build-up of old inventory on your parts shelves as listing these parts on your eCommerce site significantly enhances their visibility and likelihood of sale. Selling inventory online becomes especially powerful when paired with a strong promotional discount as it can further entice price-sensitive buyers who may not have made a purchase decision otherwise. This approach helps mitigate against inventory obsolescence, frees up physical space in the parts department, and releases capital for reinvestment in higher-demand items. It’s a win-win scenario that improves both your parts department’s inventory management and sales performance.

5. Streamline Operational Efficiencies

Digitizing your parts department isn’t just about selling online; it’s about transforming the way your dealership’s fixed ops department conducts business. E-commerce platforms offer robust capabilities that automate many tedious tasks that can slow down order fulfillment while at the same time minimize manual errors that can lead to negative customer experience. As you well know, parts & service are some of the most time-sensitive sectors of the automotive industry and streamlined operations tend to have compounding effects that can lead up to a more efficient and profitable fixed ops department. This increased efficiency translates to cost savings, improved accuracy, and allows your team to focus on more value-added activities. For a GM looking to optimize store operations, the efficiency gains from online parts sales can be game-changing.

6. Access to Data-Driven Decisions

A frequently underestimated advantage of integrating e-commerce into a dealership is the access it affords to new data sources. Many automotive industry professionals openly recognize the importance of data in the current digital-centric age, and online sales platforms are rich sources of valuable insights. By selling parts online, you gain access to in-depth analytics, including sales performance, customer demographics, inventory levels, and in-store sales trends. This comprehensive information can in turn facilitate data-driven decisions about essential retail operations, including inventory management, pricing strategies, and promotional activities.

7. Capitalize on OEM Incentives

Many OEMs recognize the importance of online parts sales and offer financial incentives to dealerships that embrace this channel. For example, some may offer co-op marketing funds that can be used towards digital marketing or e-commerce initiatives within a store.. By participating in these programs, your dealership can unlock additional revenue streams directly from your OEM partners. These incentives can provide a significant boost to your bottom line, making the decision to sell parts online even more financially attractive. Be sure to check with your OEM rep to see what options might be available to your dealership and whether or not e-commerce platforms are available for co-op marketing reimbursement

8. Prepare for Industry Evolution

The automobile industry is experiencing a significant transformation due to the emergence of electric cars (EVs) and evolving consumer preferences. An established online parts presence enables your dealership to more readily respond to these changes. As the industry progresses, your online platform can swiftly adapt to fulfill emerging expectations, whether by supplying EV-specific components or addressing the needs of increasingly digitally-savvy customers. By adopting online parts sales today, you are safeguarding your dealership’s future and maintaining competitiveness in the forthcoming years.

Conclusion

For General Managers aiming to enhance profitability, optimize operational efficiency, and secure long-term success for their dealership, online parts sales have transitioned from an option to a strategic need. The advantages reach well beyond the mere establishment of an additional sales channel; they influence every facet of your Fixed Ops department and can profoundly affect your dealership’s overall success.

As the automotive retail sector evolves, entities who adopt digital transformation across all domains, including parts sales, will be well positioned for success. The moment to take action is now. Ensure your dealership remains competitive in the digital landscape.

Maximize Absorption Rate and Future-Proof Your Dealership

Unlock your fixed ops revenue potential—download the Ultimate General Manager’s Roadmap to Maximize Absorption Rate for proven tips.

Get in touch and let us know how we can help

The post Top 8 Ways Selling Parts Online Empowers Your Fixed Ops Department appeared first on RevolutionParts - Sell Parts and Accessories.

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Fixed Ops: The Profit Engine of Tomorrow’s Dealerships https://www.revolutionparts.com/blog/fixed-ops-the-profit-engine-of-tomorrows-dealerships/ Wed, 02 Oct 2024 06:08:39 +0000 https://www.revolutionparts.com/?p=336840 The post Fixed Ops: The Profit Engine of Tomorrow’s Dealerships appeared first on RevolutionParts - Sell Parts and Accessories.

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This article was originally published in Fixed Ops Magazine, October 2024.

Today, dealerships face a pressing dilemma: How to prepare for sustainable growth as they enter a new, digital-forward automotive industry. The answer may be in transitioning from a traditional variable ops focus to a more fixed ops-oriented approach, where parts and service are empowered to drive more revenue and cover 100% of operating costs.

As consumers increasingly favor online shopping and vehicles become more sophisticated, dealers must recognize the need to replace antiquated business strategies to protect their revenue streams. The day when customers expect to buy a vehicle in a few clicks, rather than shop in person and endure the uncomfortable experience of haggling with a salesperson, has arrived. With it comes a call to arm the other side of your dealership with modern tools and a plan for profitable growth, along with a strategy to address rising operational costs. 

It’s more important than ever to maximize your dealership’s absorption rate—it’s also more attainable. There’s massive revenue potential in fixed ops that’s largely untapped. Mining this opportunity through modernization is the only way to safeguard the future of your business in an industry on the cusp of transformation. Yet, this goal remains a major challenge for many dealerships, with the average U.S. dealership absorption rate hovering at just 57%.

Challenges and Opportunities in the 2024 Automotive Market

The 2024 automotive industry is up against economic uncertainties, shrinking profit margins on new vehicles, the rapid rise of automotive technology, and a strong consumer preference for convenient shopping options. These factors are driving dealerships to rethink their traditional business models and seek new avenues for growth.

  • Economic pressures: The industry is grappling with significant economic hurdles. Rising operational costs, shrinking profit margins, and intensified competition have a tightening grip on dealership profitability. To maintain financial stability, dealerships are under pressure to diversify and find new revenue streams.
  • Increased digitalization: eCommerce has changed how consumers shop for everything—including automotive parts and services. Online shopping is not a convenience, but an expectation. In fact, even consumers who plan to buy in-store often browse and compare product prices online beforehand. Dealers whose parts inventory isn’t represented online may as well not exist to these shoppers.
  • Rise of electric vehicles: The growing EV market is starting to have a major influence on dealership operations. As traditional part sales evolve to accommodate new technologies, dealerships must adapt to different parts requirements and service models while fighting to maintain profitability. 
  • Changes in consumer behavior: Today’s consumers are tech-savvy and demand self-service shopping experiences. This means dealerships that don’t have an optimized digital presence face losing customers to competitors who are taking the needs of automotive shoppers seriously. Consumer expectations are being molded by leaders in customer experience like Amazon. If your dealership doesn’t get on board, it will be left behind.
  • Industry challenges and long-term projections: Dealerships that resist modernizing will face serious challenges, like a diminishing customer base, which will accentuate the pressure of rising overhead costs. But with a forward-thinking approach and by bringing in the right tools and strategies, these obstacles can be overcome. Dealers who invest in the historically ignored and undervalued areas of the dealership will see new revenue opportunities. 

Slim margins and rising costs of a changing industry are threatening the traditional dealership’s bottom line. The focus needs to shift towards maximizing the untapped opportunities within your fixed operations, particularly in parts and accessory sales. This transition is crucial for achieving a 100% absorption rate and securing your dealership’s financial stability in years to come.

The Role of Parts eCommerce in Driving Absorption Rates

Parts eCommerce offers a great opportunity for auto dealers. Bringing parts inventory online means dealerships can tap into a national customer base and upgrade the parts department from a dark corner in the dealership to a powerful revenue generator. With online sales of automotive parts and accessories projected to grow by nearly 50% between 2024 and 2030, embracing eCommerce is a strategic necessity.

Benefits of selling OEM parts and accessories online:

  • Market reach and expanded customer base: Selling parts online broadens your dealership’s visibility to nationwide parts shoppers. With a webstore and through online marketplaces like eBay and Amazon, dealerships can sell their inventory far beyond the confines of their local area.
  • Gross profit and parts volume: Online parts sales may have slimmer margins than your parts counter, but the sheer volume of parts you can sell maximizes your gross profit. Plus, online platforms often include tools to optimize shipping costs, which allows you to claim another margin on shipping, further boosting profitability.
  • Access to manufacturer incentives: eCommerce can unlock valuable manufacturer incentives and discounts. By integrating online sales solutions, dealerships can more easily access these benefits, leading to better margins and reduced operational costs.
  • Competing with aftermarket retailers: Aftermarket retailers hold a large share of the online market, but OEM parts offer advantages they simply can’t match. As vehicle technologies advance, OEM parts stand out by delivering better performance, durability, and reliability. Now is the time to compete with aftermarket options by entering the parts eCommerce space.
  • Attracting the new generation of buyers: Today’s youngest drivers have grown up in a digital world. They’re accustomed to shopping online and expect the convenience of purchasing everything, including car parts and accessories, from the comfort of their homes. An online presence for your parts department will allow you to attract this demographic and solidify your dealership’s footing in an increasingly digital marketplace.
  • Modernizing the dealership: Integrating eCommerce throughout the dealership is more than just an advantage. We’re on the precipice of a meteoric shift and dealerships that drag their feet on building business strategies around new technology and consumer trends risk having to close their doors.

Strengthen Your Dealership’s Future with a Modernized Parts Department

As we enter an exciting, albeit uncertain automotive future, achieving a 100% absorption rate, and the financial security that comes with it is more critical than ever. The fastest way for dealerships to reach this goal is to invest in their parts department, a powerful but underutilized revenue generator. Retail is shifting to meet the needs of today’s shoppers and advanced auto technology. Fortune will favor those who arm their fixed operations with modern tools and embrace online parts sales. With parts eCommerce, dealerships can unlock new revenue streams and build a strong foundation for long-term growth, no matter what the future brings. Prioritizing these strategies will help dealerships secure profitability and remain competitive in a reimagined automotive industry.

Get in touch and let us know how we can help

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RevolutionParts Launches Expert Consulting Services to Help Dealers Boost Sales https://www.revolutionparts.com/blog/revolutionparts-launches-expert-consulting-services-to-help-dealers-boost-sales/ Thu, 19 Sep 2024 23:02:09 +0000 https://www.revolutionparts.com/?p=336784 The post RevolutionParts Launches Expert Consulting Services to Help Dealers Boost Sales appeared first on RevolutionParts - Sell Parts and Accessories.

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Conquering parts eCommerce comes with its share of challenges. At RevolutionParts, we understand the importance of gaining a competitive edge in the automotive parts industry. That’s why we’re excited to announce the launch of our Consulting Services, led by industry veterans and part-selling dynamos Mike King and Jensay Numa. This initiative was made to empower dealerships with insider advice and battle-tested strategies to come out on top in online marketplaces.

Meet the Experts

Mike King brings more than 40 years of experience in the automotive industry. A third-generation technician, Mike transitioned into parts management and quickly caught on to the potential of eCommerce. His journey from running a small parts operation to overseeing a $25 million eCommerce business with Tasker Ford proves his natural skill and operational expertise. Mike’s approach focuses on efficient, sustainable growth, helping dealerships avoid the pitfalls of rapid, uncontrolled expansion.

Jensay Numa, with over 13 years in the industry, complements Mike’s skill with his deep knowledge of marketplace dynamics. Jensay’s career is a testament to his innovative spirit, having built successful eCommerce departments that harness the power of selling platforms like eBay. His passion for understanding the unique needs of each dealership results in a tailored approach to growth, enabling parts departments to reach their full potential.

Success Plans for Every Dealership

Every dealership is unique, so our Consulting Services offer personalized plans that address the specific challenges and opportunities that your dealership may face. Mike and Jensay work closely with you to assess your parts department’s current operations and selling strategies, find areas for improvement, and come up with new strategies that drive you toward your goals.

Our expert consultants bring a wealth of experience to help you improve inventory management, create better customer service, and grow your customer market. They share the lessons learned from their own journeys to help you avoid costly mistakes and capitalize on the digital trend.

Empowering Dealers to Charge into the Unknown Future

eCommerce is playing an increasingly important role in dealership part sales. RevolutionParts’ Consulting Services are designed to arm dealers with the knowledge and tools they need to be successful in the digital age. With Mike and Jensay, dealers like you can unlock new growth opportunities, save money on personnel, upgrade operations, and expand their customer market. In a constantly changing automotive industry, having trusted advisors by your side makes all the difference. RevolutionParts is dedicated to supporting our dealer partners at every step, strengthening their position as leaders in the competitive eCommerce landscape.

About Mike King 

Mike King has over 40 years of experience in the automotive parts industry. As a third-generation technician, his journey began in his family’s garage. After finishing school, he entered the parts business, eventually becoming a parts manager at a dealership on Cape Cod. During his 21 years at Puritan Pontiac, Mike recognized the potential of eCommerce and started selling parts online well before it was mainstream.

In 2009, Mike started his own eCommerce venture, growing it from a small warehouse into a $5 million annual operation. This success attracted the attention of the Tasker Ford family, who acquired his company. Mike then helped Tasker Ford expand their business to $25 million annually.

Since joining RevolutionParts in 2023, Mike has focused on helping parts departments achieve operational efficiency and strategic growth. He shares his years of experience to help dealers successfully navigate the challenges of parts eCommerce. With expertise in parts management and eCommerce expansion, Mike is an invaluable resource for dealers looking to grow their parts and accessory sales in the evolving automotive industry.

About Jensay Numa

Jensay Numa began his automotive career as a lot porter and parts driver, eventually discovering the potential of selling parts online. Thirteen years ago, he launched an eBay store for his dealership, marking the start of his success in eCommerce. Jensay has built multiple booming eCommerce parts departments, with one achieving $200,000 in monthly sales. He excels at understanding marketplaces like eBay and Amazon, expertly maximizing sales and navigating retail complexities.

At RevolutionParts, Jensay helps dealerships avoid common eCommerce pitfalls. He teaches parts managers to embrace digital marketplaces and sees online sales as an essential part of their business. His tailored approach recognizes that each dealership’s journey is unique, empowering them with tools and strategies for success. As a consultant at RevolutionParts, Jensay is dedicated to creating long-term growth and sustainability for his clients.

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RevolutionParts makes the Inc. 5000 list for the 8th year in a row! https://www.revolutionparts.com/blog/revolutionparts-makes-the-inc-5000-list-for-the-8th-year-in-a-row/ Wed, 21 Aug 2024 23:11:21 +0000 https://www.revolutionparts.com/?p=336508 The post RevolutionParts makes the Inc. 5000 list for the 8th year in a row! appeared first on RevolutionParts - Sell Parts and Accessories.

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RevolutionParts has been named on the Inc. 5000 list of fastest-growing companies in 2024

I’m excited to share that RevolutionParts has made the Inc. 5000 list of the fastest-growing companies for the eighth year in a row! We’re proud to celebrate this win, as it underscores our commitment to driving the automotive industry forward. 

We couldn’t have reached this milestone without your support and trust in our mission.

But this is just the beginning. We’ll continue to provide auto dealers with simple and powerful strategies to grow parts and accessory sales, allowing you to focus on what’s important: delivering quality parts to your customers. Our tools connect you with parts shoppers nationwide and solve the challenges of a rapidly changing industry, making your life easier and helping you stay competitive.

Thank you once again for being the most important part of our journey. We’re excited about what’s next and look forward to achieving even greater things together. 

Warm regards,
Ibrahim Mesbah
CEO of RevolutionParts

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Reaching Enthusiasts Who Want Your Obsolete Parts https://www.revolutionparts.com/blog/reaching-enthusiasts-who-want-your-obsolete-parts/ Thu, 25 Jul 2024 18:18:03 +0000 https://www.revolutionparts.com/?p=65463 The post Reaching Enthusiasts Who Want Your Obsolete Parts appeared first on RevolutionParts - Sell Parts and Accessories.

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Dealerships the world ‘round, whether across the street or across the sea, face the universal challenge of obsolescence on a daily basis. A specialty part was ordered, but the customer no-showed for their service appointment. You’ve been too busy to keep closer tabs on inventory and now you’re stuck with aging parts. It happens to every dealership every day.

The good news is that you can do something about it, and it doesn’t require hiring more people or making a huge capital investment. It only requires dedication to the enthusiasts who are dedicated to your OEM. While your average customer is somewhat brand-agnostic, the enthusiast has likely loved your OEM for many years and will continue to stay devoted for years to come. Because of this long-term relationship, they need and want OEM parts that span models and years, and there’s a good chance you have something for ‘em.

Let’s explore what you can do to free up shelf space, increase available capital, and grow dealership awareness by targeting enthusiasts.

 

Meet Demand on eBay Motors

If you haven’t experienced eBay as a buyer yet, you’re in for a treat. Imagine wanting a very specific item, in very specific condition, that you have searched for high and low, and come up empty every time. Now, simply type what you’re searching for on eBay and you’ll be served up with several options from sellers across the country who want nothing more than to get that item off their hands. Enthusiasts flock to eBay Motors (the auto-specific side of eBay) for the same reason – someone, somewhere, has got to have what they’re looking for. Your dealership could be that someone.

There are more than 135 million active buyers on eBay, and drilling down to the specifics of enthusiasts, a vintage car part is sold every 11 seconds on eBay. Searchable by YMM and/or VIN, eBay Motors makes it easy for shoppers to find the correct parts for their specific vehicle.

Your entire parts inventory can easily be listed on eBay Motors with an online marketplace integration partner like Revolution Parts, maximizing efficiencies like bulk inventory upload and management, so the time-consuming and tedious task of single-item listings doesn’t slow you down.

Once you have your inventory available for a national audience to search for and access, you’ve made a huge leap in awareness and accessibility. But don’t stop there! Expand your reach and shout from the (internet) rooftops that you have what enthusiasts want!

 

Engage Enthusiasts Online

While tuning cars is very much an IRL (in real life) pursuit, talking about them can happen anywhere. And much like tapping a national enthusiast customer base on eBay Motors brings that interest right to your doorstep, the same is true for fellow enthusiasts who want to talk all about their favorite OEM.

Online communities like Reddit are great places to ask questions, learn more about your desired topic, and spend time engaging with other enthusiasts. Reddit is a place where you can “dive into anything,” where more than 82 million people a day post, vote, and comment on topics of interest. Finding a community is easy and searchable, and authenticity and usefulness are valued by users. Once your dealership has an online parts presence – whether through eBay Motors or a dedicated online parts store, or both – you can direct inquiring enthusiasts to where they can find that specific OEM part they’ve been wanting. Even better, you can “talk shop” with an engaged audience who may just teach you something you didn’t know!

 

Check Out Local Car Shows and Meetups

When enthusiasts aren’t working on their cars or talking about their cars online, they’re probably talking about their cars while standing right next to their cars. These meetups, sometimes referred to as car shows, car showcases or even “coffee and cars,” are often OEM-specific, and gather enthusiasts and owners for some good, old fashioned show-and-tell. A quick Google search for your city, OEM, and “car show” or “meetup” will probably give you some great leads on date, time, and location.

These meetups bring together vehicles of all makes, models and years, unifying their owners’ common love of your OEM. Typically held in parking lots that accommodate a crowd, proud owners can show off their vehicles and talk about them while visitors make the rounds and check out the cars on display. Here, you can meet enthusiasts and share more about your dealership and, most importantly, your parts department, which may just have the exact part they’re looking for. And if your parts inventory is online, you even have a website to point them to.

 

Get the Most Out of Your Marketing

Employing these strategies will help you create a strong digital presence, as well as drive growth in your local parts business. Interested in more information on digital marketing tactics to grow your audience? Download our free Parts eCommerce Marketing Toolkit.

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Fixed Ops Opportunities for Small and Medium-Sized Dealerships https://www.revolutionparts.com/blog/fixed-ops-opportunities-for-small-and-medium-sized-dealerships/ Thu, 25 Jul 2024 17:54:18 +0000 https://www.revolutionparts.com/?p=65402 The post Fixed Ops Opportunities for Small and Medium-Sized Dealerships appeared first on RevolutionParts - Sell Parts and Accessories.

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Not all dealerships are created equal. The team you have in place, the OEM you specialize in, the problems you get to solve for your customers – those are what make up the unique dynamic in your day to day. But whether you’re a team of two or 20, you face many of the same fixed ops challenges: balancing the right parts inventory to reach – and ideally exceed – your revenue goals.

 

Scalability No Matter Your Size

If you’re on that team of two in the parts department, you probably feel like you have limited time and resources to explore expanding your parts sales. You already have more than enough on your plate, servicing customers, managing wholesale accounts – many days, fitting everything into 8 or 9 hours feels impossible.

If you’re on that team of 20, perhaps you’re feeling comfortable in the sales you’re making and don’t see a reason to fix what ain’t broke. Sure, your days are full, but it’s rare you feel overwhelmed or understaffed.

In either scenario, you’re probably leaving money on the table.

A common misconception in the world of fixed ops is that manpower = scalability. It’s often seen as a direct 1:1 ratio; the more people you have, the more you can do, the more realistic it is to scale. But we’re here to set the record straight!

The reality is that you’re only as limited as the number of customers you’re willing to reach. If you don’t want to sell more parts, you can probably stop reading right now. If you want to scale your business, regardless of employee count, let’s dive in.

 

Customer Acquisition 1-2 Punch

The first step in growing your customer base and revenue is adding eCommerce to your parts department. Shopping online has never been more popular with consumers, and at this point, is expected of every retailer. Your parts department is indeed a retailer, so it’s time to start thinking like one. Did you know that 85% of consumers are using the internet to research auto replacement parts? (Auto Care Association)

Meeting customers where they are, with what they need, positions you to meet demand far beyond your local market. That specialty part that’s been collecting dust for the past six months might be exactly what a customer across the country has been looking for. They just needed to find you.

Christopher Forrester is the parts manager at Alden Mazda in Fairhaven, Mass., with only two people in his department, and saw online part sales contribute to $150,000 in additional revenue per month. He shared, “We’re in a tough market with lots of competition, and as a smaller store with limited space and staff, we couldn’t always keep up with the bigger guys in town. But now, thanks to our online presence, we can offer our products to a wider audience.”

Next, hiding in plain sight: the service lane. They’re the parts department’s biggest customer, but does it also feel like sometimes they’re at odds with each other? Flipping the script and training your teams to cross-sell each other will increase sales opportunities for all of fixed ops. If the service department isn’t able to close a repair sale, they can always refer the customer to the parts department to purchase the necessary parts. Sharing information on the online parts store makes it easy for the customer to get the repair done, no matter how they go about it, keeping them happy while you still make a sale. Training the parts department to promote the service lane is doubling down, giving both departments a sale. This mutually beneficial relationship is a win-win and, better yet, focuses on customer experience, ensuring they are presented with all of the options available to them when needing auto repairs.

 

The Result? A Modern, Well-Oiled Machine

Think about what makes your favorite car run so well. When the talented engineers designed it, and wanted it to go faster, they didn’t add five more engines. They utilized modern efficiencies, engineering for power, not bulk. They did not subscribe to the old adage, “bigger is better,” when it came to team size. And neither should you, if you want to modernize your dealership and revenue growth. Your only limitation is the one you impose on yourself. Aspiring to grow your parts business by 10X may seem lofty, but it’s actually been reality for other dealerships out there. Imagine what you can achieve if your aspiration is 20X?

 

Expand Your Parts Sales with eCommerce Solutions

Adding online selling channels to your parts department can help you increase revenue, improve operations, and lower obsolescence. If you want to learn more about how to modernize your parts department, download our free guide, “Creating a Digital Parts Department.

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