Picture if Amazon were to advertise this competitive cost edge and strategy to the consumers. Describing to the customer that the customers could get the merchandise in a cheaper cost by purchasing online first, and then bringing the component to the mechanic? Eventually, Amazon could have a unique list of 'Amazon approved, or Amazon favored repair shops.' From there Amazon could only give a applications link up so the client can purchase on the internet, and go directly to the repair shop to get the occupation done. And voila, the business has only transformed radically.
Even from there, you can find additional development as Amazon develops an on-line 'vehicle help' website, that enables customers to However, it actually would go to support my viewpoint that MAJOR change cometh in the automotive aftermarket space during the following ten years also it will affect EVERYONE. A few of you might recall October 23, 2006 Amazon NASDAQ:AMZN declared they were getting in the match of selling automotive aftermarket components.
Nevertheless, the slow turning difficult components where the actual gross profit is actually did not appear to be a company for an online retailer. Most consumers are taking it upon themselves to save money with online auto parts purchases with extremely popular discounts including advance auto coupons
and other promo codes. This is a huge cost savings for the consumer and an excellent marketing tool for the online store.
And though within my note I nevertheless stated that Amazon going into the marketplace was prone to aid shove toward an even larger change in the business and DIY do it yourself retailers must adjust, or risk losing important share in the coming years. Sure enough on the duration of the the next couple of weeks, a majority of the management teams in the DIY retailers appeared to blow off the competitive threat of Amazon coming to the marketplace just as I'd done a couple years back.
Exclusively Tom Gallagher CEO of Genuine Parts NYSE:GPC, the main provider of NAPA auto parts had the bravery to say: "we take every opponent seriously." And it's this humility something I mentioned in yesterday's note that likely describes why Genuine Parts has among the most effective and longest track records out of ANY freely traded firm in the United States for raising its dividends to stockholders.
Sure, initially Amazon
is mainly targeting the DIY customer. The automobile enthusiast seeking a hard-to-find component, or the on-line "junky" that only enjoys to purchase most everything online. However, I believe Amazon's entry to the auto parts side of the company really presents the possibility to alter the way consumers visit promote something I've been recommending the DIY retailers attempt for the past year in the approaching 10 - 20 years.
Even from there, you can find additional development as Amazon develops an on-line 'vehicle help' website, that enables customers to find parts and manufacturer for their make and models. Check out my twitter account for more updates. twitter.com/janjameson65