As the owner of an auto parts business, you’ve probably heard of the debate going on between OEM parts and aftermarket auto parts. With the latter’s growth progressively increasing, it opens up many opportunities for business owners to look into. But what exactly are these parts, and why are they so trending?
This article will give you a proper understanding of the aftermarket auto parts section to assist you in making your business decision. We will talk about what an aftermarket part is, its pros and cons, and what factors you have to consider when offering it to your customers.
What are aftermarket auto parts?
Aftermarket auto parts are components made by manufacturers other than the original maker of the vehicle. Simply put, they are constructed to replace OEM parts; they come in when a car needs repairs, maintenance, or customization.
Since the manufacturer does not make aftermarket vehicle parts, they are generally cheaper and more accessible.
Some business owners may be a little gun-shy about exploring aftermarket auto parts for fear that the quality of these products may not match up, but this isn’t always the case. Indeed, many aftermarket pieces are at the level of or even superior to OEM. This opens up an entirely new world of options for auto parts businesses seeking to expand their stock.
The Growth of the Aftermarket Auto Parts Industry
Aftermarket auto manufacturing has been one of the much-talked-about growth industries these days. The significant reasons are probably the increasing number of vehicles on the road, translating into a more substantial number of cars needing repair and maintenance.
As time and age take tolls on vehicles, consumers seek out lower-cost alternatives to OEM parts, and that is precisely where the aftermarket industry comes in.
A report by Allied Market Research states that, by 2031, the global automotive aftermarket industry will increase to $1.4 trillion. In such an incredible market, business owners have massive opportunities to fulfill the growing demand for high-quality auto parts at competitive prices.
Benefits of Aftermarket Auto Parts
If you are considering stocking and maintaining a line of aftermarket auto parts in your inventory, the following are some of the advantages:
1. Aftermarket Auto Parts are Inexpensive
One of the biggest high spots of aftermarket parts is their price. OEM parts are rather expensive, and for many car owners, the prices of the parts that have to be replaced can add up in no time. With aftermarket auto parts, they are generally cheap, thus being reasonably inexpensive but not necessarily ceding quality.
2. Greater Choice
A/M parts generally have more variety than OEM production. From a high-performance part for your customer’s race car to an inexpensive alternative to keep an aging vehicle on the road, choices are endless in the Aftermarket segment.
3. Possibilities of Customization
Aftermarket auto parts mean endless possibilities for car enthusiasts and the businesses that serve them. From upgraded performance exhaust systems to heavy-duty suspension kits, the list of parts that can be used to personalize customers’ vehicles is endless.
4. Improved Availability
Sometimes, the availability of OEM parts may be a little more difficult, especially for older or more obscure models. Aftermarket parts are sometimes easier to source, which, of course, means ‘shorter wait times’ for your customers. This quicker turnaround can greatly help improve customer satisfaction and keep your business running smoothly.
Disadvantages of Aftermarket Auto Parts
While hugely helpful, there is perhaps a flip side to wearing and aftermarket car body parts that you should consider when making decisions for your business.
1. Inconsistent Quality
Not all Aftermarket parts are created equal, and while many manufacturers make high-quality parts, others are of lesser quality and may not meet the same standards as the OEMs. It’s critical to carefully vet your suppliers and only stock products from reputable manufacturers.
2. Warranty Issues
This may void some vehicle warranties that utilize aftermarket parts rather than OEM parts. Customers looking to keep their warranty current may be concerned about this. It is very important that you make this clear to your customers and offer them options for Lemans that fit their very specific needs.
3. Compatibility Issues
Aftermarket parts are not designed to fit a particular vehicle in every instance, so there are a lot of compatibility issues. Some parts may not fit as well or function as well as OEM alternatives. The ability to ensure the right parts for your customer’s vehicle is important to prevent dissatisfaction and returns.
Factors to Consider When Offering Aftermarket Auto Parts
Additional revenue streams can be opened by adding aftermarket auto parts to your inventory as a business owner. However, the following are a few things that need to be considered:
1. Customer Requirements
Who is your customer, and what is important to them? Some will pay more for OEM parts, while others want the cheapest they can find. Understanding who your customers are will help inventory the right mix of part types for them.
2. Supplier’s Reputation
They are not all created equal, and a careful selection of only those suppliers who have a proven track record of producing high-quality, reliable parts will enable you to partner with reputable manufacturers offering parts your customers can be trusted to use.
3. Pricing Strategy
Generally cheap compared to OEM parts; however, it is still paramount that aftermarket parts are reasonably price competitive. Consider the demand for the product, supply chain cost, and local competition when deciding your pricing strategy.
4. Marketing and Education
Many customers need to be made aware of the benefits of aftermarket auto parts or might have quality-related apprehensions.
As a business owner, the onus is on you to educate your customers about the benefits of the aftermarket alternatives and guide them in making the right decisions.
Consider adding content to your site, such as through a blog or in-store handouts, that outline some key differences between OEM and aftermarket parts. Position yourself as an industry expert, and your customers will be more apt to trust your business and, more importantly, aftermarket parts.
Final Thoughts
Aftermarket auto parts herald a world of opportunity for auto parts business owners. Together with the right suppliers and an understanding of their customer’s needs, an effective pricing strategy can help tap this increasingly growing market for expansion.
Quality aftermarket replacement parts will mean reasonably priced replacements for your customers while cementing your business as a source of all things auto parts. The fact that the aftermarket auto parts industry keeps on growing means this is an opportune moment to determine how these products will help your business and your customer base too.
If not, consider adding aftermarket auto parts to your inventory and educating your customers about them. Down this path lies great opportunities in the automotive aftermarket world.
