There are more cars on the road than ever before. And, with more cars comes the need for more parts, and more industry-specific manufacturers. The sheer growth of the automotive manufacturing sector means we can expect to see revenues skyrocket to $8,921 billion by 2030.
There is huge potential in the B2B automotive industry. With so much at stake and with an uptick in competition, B2B auto brands have to stand out and offer better service than anyone else out there. Many are turning to ecommerce solutions to do this. The ability to buy and sell parts and auto-related products online allows brands to offer accurate inventory and a purchase experience that attracts new customers effortlessly, while also ensuring that existing buyers come back for more.
The Rise of Ecommerce in B2B Auto
Buying and selling automotive products online isn’t a new thing. Back in 1999, Ford, GM and Daimler-Chrysler launched Covisint, an online marketplace built especially for the expanding global automotive industry. The platform acted as a central exchange point for manufacturers in the automotive supply chain.
But it wasn’t until the last few years that brands have started to see the untapped potential in ecommerce solutions for the automotive sector. In 2017, the industry underwent a huge boom during a difficult time thanks to advances in technology.
It was around this time that Amazon announced they would be selling auto parts from big-name brands – we’re talking high-flyers like Robert Bosch, Federal-Mogul, and Dorman Products. This had many other B2B retailers in the industry scrambling to get in on the action in order to gain a competitive edge.
Today, there are plenty of ecommerce options for automotive brands looking to take their business online. The abundance of platforms available means that businesses don’t have to create fancy online stores and can instead tap into ready-made templates and powerful plugins that allow them to start selling straight away.
For many, this has meant an increase in global sales. Take TruPar, a company that sells forklift parts to other businesses. Since creating an ecommerce branch for their store, their online revenue has increased by 25%, while their Average Order Value has shot up by 70%.
The Benefits of Ecommerce in the B2B Automotive Industry
Automotive brands that leverage the power of ecommerce technology can reap big rewards. Not only does selling online help brands reach a wider audience all over the globe, but it can boost brand presence and improve the overall shopping experience for B2B buyers.
Dramatically Grow Your Customer Base
Creating an online store helps B2B automotive brands increase their market share. By having a bigger online presence, they can attract more business buyers through search features and SEO techniques, as well as keep existing customers coming back through personalization features, competitive pricing and seamless payment processes.
And, for many B2B automotive sellers who have a limited local audience, an ecommerce store immediately expands their reach. Not only can ecommerce technology automatically translate product listings into multiple languages to reach exciting new markets, it can also offer location-specific payment options and personalized sub-sites.
Create Irresistible Customer Experiences
The customer experience has never been more important. With so much competition out there, it’s important for B2B automotive brands to stay one step ahead of their competitors and focus on their buyers’ wants and needs.
Ecommerce technology allows brands to give leads the attention they need and lets them drive their own buying experience with a self-service option. Powerful autocomplete features and advanced search engine capabilities make the shopping experience a breeze, while multi-level permission-based access mirrors internal buying systems.
Greatly Cut Costs
Ecommerce technology allows B2B automotive brands to streamline their sales processes and automate a lot of manual, repetitive tasks that are a massive time-suck.
Through powerful technology, brands can create personalized, self-service portals that are open 24/7 and shave back the buying process to just the bare bones. Without the extra costs needed at each stage, brands can significantly cut down order processing costs.
The ability to improve operational efficiency is also a major benefit for automotive sellers. Internal workflows can be digitized, creating slick order management processes, simplifying complex pricing calculations, and streamlining the negotiation process.
Stay Cutting Edge
The B2B automotive industry isn’t going anywhere anytime soon. In fact, with online revenues set to soar in the next 10 years, we can only expect the industry to continue to grow and thrive.
As a result, sellers must stay on top of trends and remain one step ahead of their competitors at all times. Ecommerce technology gives automotive brands the chance to maximize revenue without worrying about scalability. The flexible nature of ecommerce platforms means that sellers can easily pivot to new business models and diversify their revenue streams.
Ecommerce is Here to Stay in the B2B Auto Sector
The rise of ecommerce in the B2B automotive industry has allowed the sector to undergo a huge transformation. Now, buyers are able to quickly find the best vendor for their requirements, while sellers can tap into the advanced capabilities of ecommerce platforms to provide excellent buyer experiences and dramatically grow their revenue.
Ecommerce has ultimately changed the way the automotive industry operates and it’s definitely here to stay. If you haven’t leveraged its power already, now’s the time to do so.