Competition in the US auto parts market intensifies, and Amazon's share may surpass Walmart!

According to PYMNTS, Walmart held 17.7% of the U.S. auto parts market in 2014, while Amazon held only 3.3%. By 2020, Walmart's market share had slightly increased to 19.6%, while Amazon's market share had soared to 13.9%.

Let's take a look at the situation this year. Since the beginning of this year, the market share of Walmart and Amazon has shrunk. Walmart's decline is relatively large, falling to 14.7% in the second quarter, which is almost the same as Amazon's 13.6% market share.

Walmart has been ahead of Amazon in auto parts sales as it has 2,500 auto care centers in the United States . However, in the past year, due to the impact of the epidemic, a large number of physical stores have been closed, and many consumers have turned to online sales platforms such as Amazon to buy auto parts. Although the epidemic has eased and some physical stores have been opened, some consumers who have experienced the convenience and fun of buying accessories online may continue to buy on Amazon.

Data shows that the size of the U.S. auto aftermarket is close to $400 billion, twice that of China. In addition, from Google Trends, the search volume for auto parts has been relatively stable, with no distinction between off-season and peak season. The huge market, coupled with the non-seasonal product attributes, naturally attracts the attention of many cross-border sellers.

As the top student in cross-border product selection, auto parts have performed well in the cross-border track. On the Amazon platform, there are already big sellers like Best Buy that have won the Best Seller title . According to Best Buy's 2020 financial report, its automotive peripheral products increased by 42.74% compared to 2019.

Despite this, sellers must also be careful in selecting products to avoid falling into the red ocean crisis. As products that match the entire vehicle, consumers have very strict requirements on the quality and precision of auto parts. This is not only reflected in the appearance, shape and size of the product, but also in more professional mechanical properties, thermal properties and other aspects. In addition, as more and more auto parts sellers enter the cross-border track, homogeneous competition in the auto parts category has intensified. Price transparency is getting higher and higher, and the information gap is getting smaller and smaller, which may lead to price wars.

Amazon

Walmart

Auto Parts