This should be no surprise to anyone, Amazon is expanding and there is imminent threat to the industry that they are focusing on, this time it happens to be the 50 Billion DIY after-market automotive industry. The announcement of the news is already having a negative affect on some of the largest brick and motor retailers such as AutoZone and Advanced Auto parts.
Amazon recently closed some contracts with some of the largest Parts makers and with their existing customer base & access to sales data I can guarantee that they are going to be able to sell on price and rapidly take market share away from the existing lower end after market companies as they did with Amazon basics.
I actually started selling aftermarket parts on Amazon over 12 years ago when they were just starting to expand and start competing with eBay who owned and still owns ( for now) the aftermarket parts and auto parts. It has been a long and expensive learning curve for them and for me, but now I get to work with companies like Mercedes Benz of Escondido to help generate revenue from underutilized inventory sitting on their shelves. Unlike other industries, selling automotive parts is very complex and with so many variables and options that go into part compatibility charts, having a good back end infrastructure and correct content is imperative. It was sloppy at first and the compatibility charts were adequate at best, but like anything if you continue to make changes and constantly improve, new opportunities are everywhere.
Amazon does this better then anyone, testing new markets, failing forward consistently and then they find themselves where they are now, expecting to become the number 1 apparel retailer in 2017 passing Macy’s. Bezos is a Beast, he took his small garage book company and has transformed it into one of the fastest growing companies that now has its hand in almost every industry. Watch out Elon & Richard, Jeff wants to play with the big boys!
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Happy Selling in 2017!