eBay is the world’s largest seller of auto spares and accessories. With more than 110 million live listings, the global marketplace sells three auto spares and accessories every second of the day. When eBay can boast of such a high-performance sales channel, it’s easy to see why so many auto spares and accessories sellers flock to the online marketplace to list their products.
With significant changes in the auto market, including the phasing out of petrol and diesel vehicles and the ongoing cost-of-living crisis resulting in growing numbers of drivers keeping older vehicles on the road for longer, the auto spares and accessories business is set to see unprecedented growth over the next decade.
There has never been a better time to be in the auto spares and accessories business. However, despite the growing opportunity, there are also many challenges.
eBay Motors: A Highly Competitive Market
This news pours fuel on an already highly competitive market, with new sellers attracted by the opportunity entering the marketplace every day.
The increased competition puts pressure on prices, resulting in sellers finding less margin in sales of both branded and generic auto spares and accessories.
With increasing competition and less available margin, sellers can find themselves focusing on some of the more inconvenient truths of selling on online marketplaces. These inconvenient truths include the following:
- Low barriers to entry: Resulting in a constant flow of in-experienced sellers flooding the marketplace with products with little or no available margin.
- High seller fees: Including the additional costs of sponsored listings to guarantee visibility.
- Not owning the customer relationship: Meaning the seller is unable to market directly to the buyer, generating recurring revenue and Customer Lifetime Value (CLV).
When this happens, many sellers will consider the opportunity to build their own online store and take control of their own destiny. This route, in itself, does not come without challenges. However, it can become a more accessible, comfortable, and profitable journey with the right guidance.
How Frooition Can Help
Frooition has a long history of helping auto spares and accessories sellers build successful businesses on online marketplaces like eBay and Amazon.
For more information about how Frooition can help you set your auto spares and accessories business up for success on eBay and Amazon, book a free 15-minute discovery call with one of our automotive eCommerce experts today.