While Millennials play a key role in DIY parts buying, they are also rapidly becoming a larger factor in the DIFM market
Fort Wayne, Ind.—Amazon’s top ranking among Millennials has “significant” consequences for Amazon’s auto parts and repair sales, which have risen to a top priority for the internet giant, states Lang Marketing in a news release. And Amazon, along with other online retailers, are well positioned to rapidly expand in the auto repair market.
Millennials (born between 1981 and 1999) are the largest generational slice of the U.S. population, and Amazon is rated by Millennials as the most relevant product/service brand, overshadowing tech giants such as Apple and Google as well as consumer product/service brands such as Sony, Starbucks, and Nike.
Lang Marketing reports the following as it pertains to the automotive aftermarket, from parts to service.
Aftermarket Implications
• The great appeal of Amazon to Millennials will have significant aftermarket consequences as Amazon increasingly targets auto parts (retail and wholesale) for expansion.
• Millennials already play a key role in DIY parts buying and are rapidly becoming a larger factor in the DIFM market through the growth of Millennial technicians and repair shop owners.
• In its recent study of repair shop buying practices, Lang Marketing found significant differences in the buying policies of Millennial technicians and shop owners compared to older technicians and shop owners.
Brand and Price Alternatives
Amazon suggests brand alternatives to buyers, coupled with pricing advantages. This is very important to Millennials who generally prefer branded merchandise but also seek competitive pricing. Such product and price variety are generally not available from brick and mortar stores.
Peer-to-Peer Opinions
Amazon’s product review feature, which allows users to rate products that they have purchased, is one of the most significant features that make it so relevant to Millennials.
This taps into a key Millennial value: peer-to-peer opinions, which is a primary way that Millennials choose among products. This sets Amazon apart from many other buying sources (particularly brick and mortar outlets) and gives Millennials the feeling of extra value that makes their product selection much easier.
Delivery Time is a Fading Barrier
Rapid delivery of auto parts has long been seen as a marketplace requirement that has kept the internet (distance buying) from expanding beyond a limited share of auto parts volume, particularly in the wholesale sector.
However, with its rapid delivery capacity growing daily, Amazon expects to have same-day delivery and even one- hour delivery in 50 key markets within the next 18 months. Amazon could provide the swift and dependable delivery of auto parts that would be necessary for it to dramatically expand its position in the DIFM segment in the aftermarket.
o2o Auto Repair
o2o (online to offline) automotive repair is an emerging area in which Amazon has great potential for expanding its aftermarket reach. In these transactions, consumers purchase parts through Amazon and have them locally installed at Amazon-approved outlets. o2o transactions have gained strong traction in the Tire and Battery markets.
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