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The Dealers’ Guide
Introduction Why & Why Not Dealer-as-a-Buyer Dealer-as-a-Seller
◦ Dealer Parts Websites◦ Wholesale Portals◦ Retail Portals◦ Mass Marketplaces◦ Locators
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Summary & Actions System Integration Special Cases Challenges What’s Next? Wrap-Up
Parts E-Commerce – Online Parts Trade
No one right solution (unlike main dealer websites)Some dealers need multiple solutionsSolutions depend on dealer’s franchises and off-line parts business
Why listen to me? ◦ Since 1985 – Automaker/Dealer Parts Systems◦ North America, Europe, Japan & China◦ 1st Electronic Parts Catalog (1986)◦ 1st Parts E-Commerce – Automaker Portal (1999)◦ 1st Wholesale Parts Portal (2000)◦ 1st web parts locator, order referral (2002 -2009)◦ No Horse in the Race◦ Structured / Actionable
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Why Listen to Parts E-Commerce Presentation?◦ Your Customers◦ Your Competitors◦ Your Costs◦ Results
Sell More Parts Lower Costs Related to Sales (processing, returns, …)
Lower Purchase Cost of Some Parts Without Adding Staff or Increasing Capital Invested
◦ Not Obvious: > 20 Suppliers; 6 Types (with distinct benefits, costs, buyer segments); 50 Solutions
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DSPs IAP WHI eBay Motors OEC / SBS Sellers AM N / A Dealer 13,000 Other 1,500 Total 19,000 9,000 14,500 Buyers AM 20,000 Dealer 14,000 13,000 Other 1,500 Total 140,000 300,000 Transactions
Orders 30,000 daily 245M lifetime $$$
1.75M daily > 2B annual 1.5B Qtr 18B – 12
years
AM crushing OE; Volumes Substantial
DST reports transaction volumes same order of magnitude as IAP & WHI
Approaching $1B/mo.>10% annual growth
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Dealer-as-a-Buyer (DaaB) Overview◦ D2D – Idle & Urgent◦ AM
Dealer-as-a-Seller (Daas) Overview◦ B2B, B2C, D2D◦ Portals, Dealer Websites, Locators, Mass
Marketplaces◦ Parts, Accessories, Tires, Merchandise
Buyer/SellerChaos
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Trading Bond (Importance to Buyer)
Low High
Buyer Urgency
(relative to price)
Low Mass Marketplaces (Primarily B2C & Semi-Pro)
Dealer Parts Websites (Primarily B2C & Semi-Pro)
High Parts Locators / Retail Portals (D2D, B2C)
Wholesale Portals (B2B)
Mechanical Repair (All & Fleet only)Collision Repair
DaaS - Segmentation
Solution Clusters
Consumers & Semi-Pro Buyers ◦ Natural, convenient and faster – particularly for
younger and “digital” customers◦ Searching the web is what digital buyers do
Price shopping 24 x 7 to research, search and order
◦ Web educating more DIYers to do more◦ Economy – financial pressure to DIY◦ Wider range of OE (ex: VPI, Performance) & AM
Parts
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Mechanical Repair Professionals◦ Already switched to parts e-commerce for AM parts
due to discounts (most orders)◦ 24 x 7 & Never on hold◦ Integration to Shop’s Systems◦ Online Access to order info/status – current/archived
Collision Repair Professionals◦ Same as for Mechanical Repair Plus:◦ Automakers’ Parts Program (discounted parts)◦ Access to automaker technical info◦ Future: Compliance w/ Insurance Company programs
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How Selling Via E-Commerce Benefits Dealers◦ Some parts buyers require parts e-commerce and
more are shifting to e-commerce◦ More ordered (related parts, conquest/conversion)◦ Faster & easier to process digital than phone or
fax orders (plus save the inbound toll-free charges)
◦ Potential for fewer returns (180° change)
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Costs◦ E-Commerce is not free for sellers◦ Pricing – in a few cases – tricky as old cell plans◦ Returns can be higher (though recent industry
experiences are the reverse) Culture
◦ Digital buyers’ expectations are higher and heading higher – immediate accurate responses
◦ Digital Orientation required Customers
◦ Some customers not ready; others inconsistent Failure is an option
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AM◦ Advantages of selective purchases via e-commerce:
Discounts for purchasing via e-commerce Single source: makes not covered by dealer’s
franchises Speed and accuracy of ordering Availability and delivery timing
◦ Scenarios Parts for vehicles in dealer workshop (franchise/not) Used car prep (maintenance, repair and restoration) Good/Better/Best service parts
◦ Platforms: WHI, IAP, DST OE: Idle / Urgent
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WORLDPAC NAPACARQUEST AutoZone
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Key Attributes Benefits Comments
Dealer Websites
Heavily B2C Web parts catalog Often new buyers Dealer pricing FedEx, UPS, USPS Credit Card; PayPal
Dealer Brand protected CSI up (digital consumer) Sales up Costs down
Payment options and automation, shipping options, vary widely
Available 24 x 7 $125 to $200/mo. per franchise
plus – for a few – extras
Wholesale Portals
Only B2B Dealer invoice/billing Customer-specific pricing Often web catalog Often buy-side integration Availability often built in
Often buyer driven Retain Sales (defensive) Costs down
Dealer delivery and/or pick-up Available 24 x 7 Often reinforces established
trading pairs Under $300/mo. per franchise
unless per Shop fees
Retail Portals
Web parts catalog Buyer matched to dealer May support some B2B MSRP Pricing (plus Matrix) Availability may be built in
OE Brand protected CSI up (digital consumer) Sales up Costs down
Payment options and automation, shipping options, vary widely
Available 24 x 7 Up to $200/mo.
Mass Marketplaces
Heavily B2C Often discounted Buyer selects “deal” Web catalog embedded FedEx, UPS, USPS Credit Card; PayPal
Market reach is large Volume sales potential
Brand implications TBD Full e-commerce % of sale that ramps down with
transaction value
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Dealer Parts
Website
Wholesale Portal
Retail Portal
Mass Marketplace Locator
Buyer Segment
B2C + B2B Only B2C + B2C + D2D / Mixed
Customers > 90% New Customers
Mostly Existing Trading Partners
Mixed Mostly New Varies
Customers’ Payment Options
CC, Paypal, most digital forms
Dealer invoice CC, Paypal, many digital forms
CC, Paypal, most digital forms
Generally off-line
Customers’ Delivery Options
Ship via UPS/FedEx Dlr Options Emerging
Dealer delivery
Ship via UPS/FedEx Dlr Options Emerging
Ship via UPS/FedEx
Determine off-line
Availability
Rare Nearly Always (real-time & daily)
Mixed (if so, daily)
If listed should be in stock
If listed should be stocked
Parts Catalog All-Makes Nearly Always – OE & All-Makes Catalogs
Always – OE & All-Makes Catalogs
All-Makes None
Parts Pricing Often Internet Discounts
Customer-specific pricing
Often OE MSRP (for B2C)
Often discounted None
Branding
Dealer branding – new Internet brand
Portal & Dealer branding
Automaker & Dealer Branding
Marketplace & Seller Branding
Locator & Dealer
Fees / Expenses
$ 125 to $200/mo. per franchise +++
< $300/mo. per franchise +
< $200/mo. (avg. tier)
< 8% of sales
$50 to $200/mo. per franchise (avg. tier)
Website dedicated to selling parts◦ Cousin Larry Can’t Build – Catalogs & Billing◦ Parts – Plus Accessories & Merchandise ◦ > 90% FedEx, UPS or USPS shipment◦ B2C now, B2B extensions emerging
Benefits◦ Increased sales (most incremental for dealer)◦ Low Returns (if done right)◦ National [International] reach – different market
Easy & Quick Set-up /Maintenance TradeMotion, Parts Website, RevolutionParts,
SkyParts, Reynolds & Reynolds, WHI, Others
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Issues:1.Brand vs. New Brand2.Domain Name: OE IP; Dealer IP/Subdirectory
ROI◦ A >> Z / (X ∗ Y)
A = Website Sales / Month Z = Fees for Website / Month X = % Gross Margin on Retail Parts Y = % Sales that are Incremental
◦ Set S&H to cover actual costs ◦ Charge restocking fee that covers returns◦ Upsides
Retained customers that might have left w/out website
Productivity gains from streamlined order processing
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Segments: IRF, Fleet, Collision & Dealer (D2D) Wholesale Buyers
◦ Pricing specific to each wholesale account ◦ Buyer needs to know quickly if/when deliver parts◦ Primarily Local Delivery or Pick-Up; Dealer Invoice◦ Potential for Incentive Programs◦ Buyer system integration
Benefits◦ Customer satisfaction & retention [pre-existing trading partners]
◦ Moresales (related parts, conversion); new customers◦ Greater order processing productivity
Mechanical: OEC, WHI, DST, Infomedia, Lexcom Collision: OEC, Infomedia & WHI
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Issues:1.Very different from Retail2.All-Makes vs Franchise3.Where $$$ is; Effort
ROI◦ (Y ∗ X) >> Z
Z = Portal Fees / Month X = % Gross Margin on Wholesale Parts Y = $ Sales that are Retained + New/Incremental
◦ Upsides Productivity gains from streamlined order processing Lower parts returns
◦ Upfront Costs / Efforts
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After catalog search, Buyer picks (local) Dealer Parts, Accessories, Merchandise & Special Parts Often an automaker program/solution Benefits
◦ Marketing muscle [top 10 search results]◦ New sales (related parts, conversion); new customers◦ Greater order processing productivity
Risk: Non-Participation in OE-sponsored Tool Ford (FordParts.com – OEC); Honda (eStore);
Chrysler (Mopar eStore – Chrome Data), Nissan (eStore – TradeMotion), …
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ROI◦ A >> Z / (X ∗ Y)
A = Portal Parts Sales / Month Z = Portal Fees / Month X = % Gross Margin on Retail Parts/Accessory sales Y = % Sales that are New/Incremental + ‘Saved’
◦ Upsides Productivity gains from streamlined order processing Lower returns
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Primarily B2C – AM, OE, Used Parts, Accessories, Merchandise & Special Parts Many Buyers Price Sensitive: Idle/Overstock Benefits
◦ Marketplace brand recognition & traffic HUGE - WW◦ Marketing and advertising muscle◦ New sales (related parts, conversion); new customers◦ Greater order processing productivity
Segments: Set Prices; Auctions; Classified Ads eBay; Craigslist; Amazon
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ROI◦ Transaction Fees Primary
Determine which parts you can afford to sell For idle, if all else fails, part of a loaf is better than
none Work with Marketplace Partner
Non-transactional fees waived Listing & Shipping Automation tools available
◦ Upsides Productivity gains from streamlined order processing Idle reduction
◦ Upfront & Fixed Costs
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Two Types◦ OE-Sponsored◦ Independent
Use:◦ Buyer searches for parts available (in stock)◦ Locator provides list (by distance) of matches◦ Buyer selects seller(s) from list of matches
ROI◦ OE-Sponsored: More compliance than profit
motiive◦ Independent: Same as for Retail Portal
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Many Checks Not Better Economically as Dealer Typically
Must Pay For Each Product/Service (unified dealer client a benefit)
Dealer as a Buyer Dealer as a Seller
Idle
AM
D2D
D2D
B2B
Mec
hani
cal
B2B
Colli
sion
Cons
umer
& S
emi-
Pro
Part
s
Cons
umer
Ac
cess
orie
s
Amazon Marketplace
Chrome Data Retail Portal
Craigslist Marketplace
DealerMine Idle Market Idle
DST Whsle Portals
eBay Motors Marketplace
IAP Whsle Portals
Infomedia Whsle Portals
Insignia Group Dealer Websites
Lexcom Whsle Portals
Parts Website Dealer Websites
OEConnection Whsle Portals s
RevolutionParts Dealer Websites
R&R Dealer Websites
SBS Accessory Portal
SimplePart Dealer Websites
SkyParts Retail Portal
Software Global Dealer Websites
TradeMotion Dealer Websites
WHI Whsle Portals s s s
Summary
Action Plan◦ Buying Parts
If in wholesale, participate in automaker D2D programs If service other-than-franchised: online buying
discounts Investigate policy to buy idle parts (>$X if non-urgent)
◦ Selling Parts Consider and Re-Consider Automaker Programs Look for Automaker Funding of Other Programs If Idle is more than minor pursue online sales If not in wholesale, try Retail Portal or Parts Website If in wholesale, study/consider Wholesale Portals
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DMS◦ Basic parts e-commerce is DMS independent – not
so for many advanced features/capabilities◦ DMS Integration value highest for: B2B, high
volume◦ Dealer-as-a-Seller
Availability from DMS MSRP from DMS Customer’s Matrix Price from DMS Order
Parts / Quantity to DMS Status from DMS
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Considerations:1.DMS Integration Certification2.Capabilities Vary by DMS
DMS [Cont.]
◦ Dealer-as-a-Buyer P.O. Populated / Integrated across DMS applications Improved parts receipting
Shipping◦ FedEx & UPS◦ GPS / Routing – Your Delivery Fleet [Elite EXTRA]
Wholesale Buyer System◦ Mechanical Repair Shop Systems◦ Collision Repair Shop Systems
E-Commerce to E-Commerce [Example: Portal to Marketplace]
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Accessories Merchandise Niche: Vintage, Performance Tires Idle Dealer Groups
◦ Dealer Websites Branding, Referral◦ Trade between stores
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Responding to Customers (to their satisfaction)
◦ Availability◦ Delivery day/time◦ Accurate price (B2B and D2D – not B2C issue)
Dealer Systems Integration Returns Part Numbers Customer adoption uneven
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Continuing shift to e-commerce:◦ Locators◦ Idle solutions (including bulk)
Parts & Service sites Parts & Accessories: In-a-Box & Installed Prices Blurring of lines
◦ Portals will add dealer parts “micro sites”◦ Locators will add parts catalogs and/or “micro sites” ◦ Catalog Improvements: Automaker web EPCs become
more useable by non-experts while All-makes OE catalogs become more accurate, complete
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Thank-You
For more: www.fellowesresearch.com
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