How Amazon Will Slowly Murder The Auto Parts Stores

"Steven Lang" (StevenLang)
02/09/2015 at 13:25 • Filed to: None

For the last five years my auto dealership has purchased well over $100,000 worth of auto parts. Almost all of it came directly from auto parts stores.

This year we will likely buy less than a tenth of that total from those same parts store goliaths. And it all comes down to two words.

!!! UNKNOWN CONTENT TYPE !!!

Amazon Prime.

48 hours is all it takes for me to get the parts I need for my dealership. Free shipping. Good reviews for the parts I order, combined with a VIN specific search that lets me find the specific parts I need for the repair..

Amazon has partnered with a variety of large parts distributors and manufacturers that already do business with the auto parts stores. For better or worse, everyone these days sells the same parts from a small group of suppliers. Just as supermarkets use their own labels for their cheap goods, parts stores use store brands to market parts that are often times identical.

This isn't news if you have spent time online trying to shop for parts . What AC Delco sells to the O'Reillys and Autozones of the world, they also sell to the online based Rockauto, Partsgeek and JC Whitney. Hundreds of other manufacturers sell everything they can, to everyone they can.

Until about a year ago the auto parts stores had an enormous competitive advantage over everyone else.

If you needed it now , they were the only real game in town. New car dealerships typically sold parts that were far more expensive than the discount auto parts stores. The parts stores also saw fit to offer varying levels of warranties for the exact same part, which helped them avoid any serious price matching possibilities.

If you own a repair shop, or retail vehicles, the so-called price competition issues between parts stores is even more of an exercise in futility.

Customers usually can't wait a week for parts. You — me — doesn't matter. A repair shop also hates having to shop around because by the time we have made a few calls and tracked down exactly what you need, an hour of our lives can already be gone.

And then... you may not even get the right part.

As Seung Min 'Mel' Yu from Consumer Reports explains:

"Automakers frequently change the parts that are used over the course of a lifecycle. For example, the 2004 Volkswagen Jetta with the 2.0 Liter had four different types of engine code fuel injectors that are completely different and not interchangeable. If you pick the wrong one, well, you're stuck."

Retail customers deal with the same clusterscrews that we do when it comes to price competition and parts matching. Parts, even for once common vehicles, are sometimes stowed away at warehouses instead of the storefronts. That means you have to wait no matter what.

So commercial and retail customers until recently had two choices.

Either pay through the nose and get it now, maybe, or wait a bit longer and get a lower price from the online provider, and hope it's the right one.

Amazon is solving this dilemma for the commercial customers and for millions of folks who do their own maintenance. It's not the best solution for the "need it now" customer, or for those who can wait a while and get the absolute lowest price. But it is a solid bridge between the two extremes of time and price.

Amazon Is Competing On The Fringes — For Now

In my experiences, the prices have been at or near the low side of the scale. I'm crunching the numbers for my 2014 purchases, and the average price is working out to be about 30% less than what I was paying in the past. There are lots of times when I need a part immediately and Amazon can't fill that need, yet. This is especially true when I get new inventory that only requires batteries, a tune-up, new filters and fluids, and brake work.

For everyday folks this is equally true. A simple and inexpensive repair can be done immediately and that gives the auto parts stores a competitive advantage. But when it comes to parts that have been priced to the nethersphere, and and aren't required right now , this is where the game is changing.

The next steps in this industry should be interesting. As a car dealer who has been involved in this industry for nearly 15 years now , I can safely say that three changes will likely happen in the near-term.

Amazon will !!!error: Indecipherable SUB-paragraph formatting!!! that can already deliver parts on the same day they're ordered. For example, 1-800-radiator is a popular regional part company here in the southeast that already provides same day delivery for radiators, fuel pumps and A/C components. Amazon's marketing muscle, combined with 1-800-Radiator's regional distribution network, would tie in quite well with each other.

Auto parts stores will start delivering parts directly to retail customers. There may be a certain dollar minimum and a mileage radius, but the auto parts stores won't have much of a choice. The cost of this will likely be passed on directly to the cost of the part.

As a guy who used to take companies public as a financial analyst, and as someone who has to order parts nearly every day, I can't help but think that the margins for the auto parts industry are about to be pinched very hard. Amazon has a virulent history of !!!error: Indecipherable SUB-paragraph formatting!!! , and there is little reason to believe the auto parts market will be any different.

The O'Reillys, Autozones, and Advance Auto Parts of today may gradually become the Office Depots, Staples, and Office Maxes of tomorrow. Apps are already taking the place of direct online shopping at web sites, and if Amazon continues to remain the most popular app in modern commerce, this along with the right partnerships will likely help them develop the means to slowly take over the auto parts market.

DISCUSSION (100)

Snooder87 > Steven Lang
02/09/2015 at 13:38

The key for retail stores to stay alive, I think, will be customer service. Specifically the ability to have someone not just sell the part you need, but actually tell you which part you need, why you need it, and help with the installation/repair.

They can't be cheaper than amazon. But I'd rather pay $75 for a headlight at a place where there a physical person with tools to help me remove the old one than order it online for $50 and find out I'm missing a wrench that'll cost another $10 and a couple days of shipping.

lone_liberal > Steven Lang
02/09/2015 at 13:43

I mostly agree and have been ordering parts from both RockAuto and Amazon for my project car since retail stores don't keep a big stock of parts for 45 year old cars. The only issue I see is parts that require a core charge. If the online companies don't require a core then the price is usually higher than retail on parts I've looked at like brake calipers. The retail stores also give you the option of bringing in the old part so you can make sure the new one is the same thing. That's why I've also started ordering from NAPA online and then picking it up at the store.

GhostZ > Steven Lang
02/09/2015 at 13:46

*How amazon will replace thoroughly inefficient and wasteful businesses while providing the same quality or better service

GhostZ > Snooder87
02/09/2015 at 13:51

The problem is that the information necessary is freely available on the internet. Yes, there's the chance that it may not quite apply to your vehicle or that the installation requires skills or tools you don't have, but that's what a mechanic is for.

Plus, most auto parts stores don't even have that level of expertise.

The way I see it going down is that auto parts stores are going to be split up into two categories, parts and service. The service side is going to be picked up by your local mechanic, the person you still have to physically go meet if you want work done, while the parts distribution is going to be covered by places like Amazon.

Takuro Spirit > Steven Lang
02/09/2015 at 13:54

You also have to weigh the downtime of that used car that needs the parts.

Does the discount you get waiting 48 hours make up for the 2 days it won't sit, repaired, ready for sale, on the front line?

Not here it doesn't. If the local Napa/US Autoforce/Advanced/Autozone/1-800-Radiator/Keystone can't get it today, or at the EARLIEST tomorrow, it's a miracle. To wait beyond that? There better be a damn good reason.

Takuro Spirit > GhostZ
02/09/2015 at 13:55

Good luck getting quick warranty service, especially for labor claims, through Amazon.

Jonee > Snooder87
02/09/2015 at 14:01

For most people, though, cheaper will always win.

GhostZ > Takuro Spirit
02/09/2015 at 14:02

If they do warranties like Newegg, then maybe they will.

Amazon is perfectly fine bleeding money on warranties if it means putting their competitors out of business, a strategy they've been employing for a while.

Takuro Spirit > GhostZ
02/09/2015 at 14:06

But then you have to wait some more for a replacement for the defective part, and have to most likely send the bad part back, and have more downtime.

Ian @ Jewel or Jalopy > Steven Lang
02/09/2015 at 14:27

I totally agree. This is exactly what I do for our personal and inventory cars. Parts that I don't need immediately (key fobs, spark plugs, timing belts, etc) I order off Amazon. If I need it today I drive over to Napa or O'Reilys.

Cheaper prices, shopping from the comfort of my couch at 11 PM, win-win.

DoYouEvenShift > Steven Lang
02/09/2015 at 14:28

Ive only ever bought electronics and gun parts on Amazon. However, roughly 3/4 of my auto parts come from rockauto. Only thing I dont like about amazon is the shipping can take anywhere from 3 days to 3 weeks. Maybe its just me.

RallyWrench > Steven Lang
02/09/2015 at 15:02

And by association, the automotive repair industry. The writing is on the wall. More & more, people want to bring in their own parts, available at hugely reduced prices from online vendors, which they've ordered based on their own internet-informed guesses but don't want to replace themselves. They then fail to understand why I can't warranty their parts or guarantee the repair because I haven't made the diagnosis or provided the parts. I don't blame them or disagree with their motives, and whenever possible I sell parts to customers at less than list if there's enough margin, but I'm in the unfortunate position of having to make money on automotive repair.

But, that's undeniably the future we're looking at. A lot of shops & parts houses will die, and a small number will reinvent themselves successfully & thrive by specializing in single marques/conglomerates (VWAG, FCA, etc) or systems in markets that will support them. Even then it will be hard, because the cost of doing business continues to go up, and OEM level support systems are prohibitively expensive & increasingly necessary for effective diagnosis & repair.

I believe that the repair industry is completely unsustainable in anything resembling its current form in the long term, especially considering the massive changes we're now seeing in the fundamentals of the automobile. Tesla is setting the bar for how it's going to be, in my opinion. The car will be forever tied to its manufacturer, reliant upon updates & OEM support, ever more so as we shift to autonomous cars & networked transport infrastructure. Get ready.

NaturallyAspirated > Takuro Spirit
02/09/2015 at 15:49

I've had to warranty auto parts through Amazon; they shipped a replacement immediately via overnight, and I had 30 days to ship the old part back. That's quicker than Autozone or NAPA can get me another part in most cases.

Snooder87 > GhostZ
02/09/2015 at 16:12

I have never been to a car mechanic that stocked wiper blades, batteries, headlights and other minor car parts.

If they start doing so, then what is the difference from an Autozone where they do free battery installs and help you with minor repairs?

Stef Schrader > Steven Lang
02/09/2015 at 16:41

A lot of the "changes that will happen" sounds a lot like WorldPac's whole business model. They do same-day delivery as an in-town parts wholesaler. Maybe it's a thing limited to larger cities, but I'm surprised your dealer didn't have a contract with somewhere similar as opposed to going through more general-public retail outlets for stuff.

Takuro Spirit > NaturallyAspirated
02/09/2015 at 16:43

Interesting. Guess if they can ship out right away overnight at no additional cost, I ca ndeal with it.

The Autozone/Napa issue depends on if its in stock, and how many stores there are in town. We put an alternator in a car the other week, and it was overcharging right out of the box. Napa had one more in town at the warehouse, so they made a special run to get it to me, had it in an hour.

Napa paid for the part, and Sonsio (warranty company that covers the labor) had the work authorized and credited to us in a few days.

Steven Lang > Stef Schrader
02/09/2015 at 17:12

The nice little town I live in is somewhere between civilization and Deliverance. However Worldpac is one of many providers in this space. Although Rockauto and Partsgeek tend to be better known by the enthusiast community.

Great reading you here by the way!

f86sabre > Steven Lang
02/09/2015 at 17:50

This. We have a Cooper S and an Evo VIII, so the local auto parts store is pretty much worthless already. They don't even stock the crush washers for the Evo drain plug. Also already a Prime customer.

Megamullin > Steven Lang
02/09/2015 at 18:43

As a noob, I appreciate the advice that's given along with the part at the auto-parts store. I get that it's on the internet, but my experience has been I don't know where to start looking when I need a part.

The advice has-usually-been pretty solid. But then again, what do I know: I'm a noob.

Xkjacob > Steven Lang
02/09/2015 at 18:48

most brick and mortars lack available stock or even my oil filter.

Off with their heads.

SurfSwitch > Steven Lang
02/09/2015 at 18:48

I buy 99% of the parts I need online. I browse the forums for hands on research and then order my parts largely from Amazon, with a few exceptions for forum sponsors who offer group buys or better pricing. Good vendors have great customer service and you just can't beat the prices.

True > Steven Lang
02/09/2015 at 18:49

The days of the local, independent auto parts store with employees that actually know their jobs and not just how to operate a POS machine are long gone. Just a few months ago I needed a gasket for a Ford 9" rear end*. Not one employee of the Autozone in my town had ever heard of such a thing.

If Amazon is able to truly deliver on a comprehensive search tool I'll not miss them when the Autozone's and O'Reiley's are gone.

*FWIW, the Ford 9" was in use by Ford from 1957 to 1986, is still manufactured by the aftermarket and is arguably the most common rear axle/differential template ever produced.

MTY19855 > Steven Lang
02/09/2015 at 18:52

48 hours is good, but when you need something NOW or you're walking to work tomorrow, the brick and mortar is the way to go.

Highball! > Steven Lang
02/09/2015 at 18:54

I had run some part numbers on a customers 2010 Acadia for transmission cooling lines and both were in stock on Amazon Prime from ACDelco, even had a buy both inlet and outlet with a combined price.

Nedus > Snooder87
02/09/2015 at 18:55

Considering they still insist on asking what engine I have when I need something like a wiper blade, they better get with the program.

Toyotathong! > Steven Lang
02/09/2015 at 18:55

Kinja'd!!!

This would make for a pretty sweet tattoo.

f20c > Steven Lang
02/09/2015 at 18:55

Office Depot and Office Maxes were purchased by Staples a few hours ago.

Are you saying that all of the remaining auto parts stores are going to merge?

TheSaabguy > Steven Lang
02/09/2015 at 18:55

I don't know about you but auto parts stores in Canada have already been delivering for years now.

davedave1111 > GhostZ
02/09/2015 at 18:55

"Amazon is perfectly fine bleeding money [...] if it means putting their competitors out of business, a strategy they've been employing for a while."

That assertion makes no economic sense. You can't create a monopoly in a contestable market - or rather, you can, until you start trying to put prices back up, at which point the monopoly breaks down.

http://en.wikipedia.org/wiki/Contestab…

TheCrudMan > Takuro Spirit
02/09/2015 at 18:57

Amazon will take any item for a full refund on a return, and free shipping back to them. Pretty much no questions asked ahead of time. Just say it was broken, describe the manner, use their shipping label, and you're done.

factsonly1 > Steven Lang
02/09/2015 at 18:58

I've been buying all my auto parts off Amazon. Water pump, fan clutch, hoses, gaskets, etc. I still need the auto parts store, however, because sometimes I need something in a pinch. For example: I bought the wrong gasket off of Amazon. So auto parts stores aren't completely useless, just about 98% of the time.

GhostZ > davedave1111
02/09/2015 at 18:58

You are assuming that Amazon is in a contestable market, which is a bad assumption to make. They're in one of the markets with the highest barriers of entry, international shipping and online commodity sales. ESPECIALLY with things like auto parts, where you need a well-established distribution network before you can even begin to consider pricing.

factsonly1 > Takuro Spirit
02/09/2015 at 18:58

Good luck getting any warranty service through an auto parts store.

Boomsticktmo > Steven Lang
02/09/2015 at 18:59

Hmmm... Rockauto has been my go to find parts for my three jeeps... One of which when finished, will consist of 3 different year cj 5/7's. Rock auto's part layout makes it ideal to find parts for specific years... With that said, sometimes the part is cheaper on quadratec or amazon (usually when shipping is included). If it is not a significant variance, I purchase from RA. AZ and AA are for oil buying (and dumping) and emergency repairs items. I do buy my batteries from AZ, as I want to be able to get it replaced immediately if it fails (and they tested it, so not PIAT to get a replacement).

SharonNeedles > Steven Lang
02/09/2015 at 19:00

Good. Besides NAPA all the other parts places suck. Even NAPA sucks sometimes too.

Takuro Spirit > factsonly1
02/09/2015 at 19:01

I have no issues.

But then again I work for a dealership soooo......

Maxaxle > Toyotathong!
02/09/2015 at 19:02

Kinja'd!!!

Obligatory.

MettalicBrownStickWagon > Steven Lang
02/09/2015 at 19:03

Customer Service, to wit:

O'Reilly's local manager knows CARS as well as his own company's SYSTEM. Hence he can correctly select the A Arm rod for my 63 Impala, and once the box arrives at his store, return the bushings (that I don't need) and leave me with the correct rod at a much lower price.

Amazon, not so much.

QQXQXL123 > Jonee
02/09/2015 at 19:06

But when cheaper is "cheaper than the dealer", you can afford to keep your margin high.

We've gone through something like this here in the UK. We only have one major auto parts chain (Halfords) which lost its way a little as people have in the main stopped maintaining their own cars. They found their way back by setting up a little tent in the parking lot and charging $10 a bulb for changing lightbulbs that they sell in the store. They also do wipers, batteries, fuses, and other simple consumables, again for a small charge.

I find that ridiculous. But then I expect some people think that changing your own lightbulbs is ridiculous; scratch that, I know that some people think changing your own bulbs is ridiculous. The point is that they added value, and more to the point, added value that an internet retailer could never add. It's stuff like that which will keep your business viable in the internet age.

mhadden > Steven Lang
02/09/2015 at 19:07

Thank you for this snippet - I've been saying this for years (been a Prime member for many years) but it's finally coming from someone involved with the business.

I feel sorry for the kid that thinks he knows *EVERYTHING* there is to know about cars (except, oddly enough, never my car) but shopping online saves me the bullshit and money. I don't think the big parts stores will be like Staples. It'll be more lile Best Buy - take advantage (make 'em pay!) of those who can't wait or don't know any better to shop online.

davedave1111 > GhostZ
02/09/2015 at 19:11

Well, it's the standard economic view. Despite what you think, the barriers to entry are not high at all, because - and this is the whole point of the article - we're not talking about direct competition in that sense. If Amazon raises prices, all those shops which closed down could reopen, for example.

CaptainButters > Maxaxle
02/09/2015 at 19:13

Nice supercharger brah!

Jonee > QQXQXL123
02/09/2015 at 19:13

I wish that's the way U.S. auto parts stores would go. We'll see. Customer service is the one thing they have over the internet, but I fear they'll just cut corners to try and stay competitive on price. Here we have Pep Boys which are pretty large stores that always feel like they have 1 or 2 people working there.

Phantomlimb > Nedus
02/09/2015 at 19:14

Does your car have A/C ?

MattRFrankenBenz > GhostZ
02/09/2015 at 19:16

I disagree. There's a very nice guy in the local NAPA who can tell you what part you need off the top of his head, and if it's been replaced by something? He can tell you that too, and get it ordered if they don't presently have it in stock. Very helpful when you're restoring a 50 year old truck that doesn't have the original motor.

'69 tego > GhostZ
02/09/2015 at 19:17

reading something on the internet or watching a youtube video and actually doing it are two entirely different animals.

I only wish it were that easy, and I work on vehicles for a living.

sure for some things it's easy enough, but when you are arms deep in a major repair and have a question, who ya gonna call?

Stephan Wilkinson > DoYouEvenShift
02/09/2015 at 19:19

It's just you. Buy their Prime membership and you'll get what you buy, if it's Prime-eligible, in 48 hours max.

I used to make a list of stuff I needed (automotive as well as not) and wait three weeks or a month until I had enough to make it worth driving to Loew's with a stop en route at Autozone. The other day I had a bright thought and wondered if the stuff was available from Amazon. Toilet plunger, rear wiper blade for the Volvo wagon, oil-filter element for the Boxster, cleaning supplies, razor blades, AA and AAA batteries, some stainless steel washers, kitchen can opener, cat toys, carpet-steamer fluid, a 10mm combination wrench, and on and on. Everything was there, at great prices, free shipping, no need to drive a 20-mile round trip.

And a bonus: for the first time since I bought the Volvo seven years ago, I got the RIGHT rear wiper blade. Every other one I've installed thanks to Autozone's sizing chart was an inch too long, and they only cleaned half the window.

WhichOneIsTheClutch > Steven Lang
02/09/2015 at 19:19

Amazon had the lowest price on the Corsa cold air kit for my C6 up until 2/1/15. As of that date all Amazon sales in my state (Illinois) are subject to sales tax. I can now find the part elsewhere on the interwebs for less money. Even if I have the choice of buying for the same or similar price, I'm going to chose the non-Amazon company. I'd rather the money go to someones profits than get squandered by my mismanaged state. I loved my Prime membership but it is unlikely that I will renew it.

Spacegrass > f86sabre
02/09/2015 at 19:20

How many times have you been told, "Nope, says on my computer that's a Dealer Only Item , sorry."

GhostZ > davedave1111
02/09/2015 at 19:20

You're going to have to qualify 'standard economic view' here. Last I checked, the only standard economic view is a list of vocabulary, beyond that there is public policy economics, private equity, and academic economics, all of which fight at eachother's throats about things they disagree with. The standard economic view right now is that most models are very flawed and dependent on many assumptions.

You're assuming a) they're going to raise prices at all instead of subsidizing them with income from other sources just to maintain the market

b) That getting over the barriers of entry in opening those shops (especially if the corporate head of the franchise goes down) is going to not exponentially increase as time goes on. The point of a franchise is to reduce the local barriers of entry by relying on a mother corporation. If the mother corporation goes down, now you have local civilians fronting the cost of opening a shop.

c) That the distribution networks that companies like Autozone use will still be up if they go out of business, and will be accessible by anyone wanting to compete, and will not be parked on by Amazon themselves (this is the strategy that Rockefeller used in his Oil monopoly, preventing anyone else from shipping crude oil to their refineries via rail, by having private deals with the railroads, put almost all refineries out of business).

d) That amazon will not continue to reduce their cost, and stop reducing their price once other companies go out of business, eventually becoming profitable.

Amazon used this strategy to gain the market share they have now back in the post-dotcom bubble. In fact, Amazon didn't make a profit for years until very recently, and Wal-Mart used this strategy in the early-2000s to put out of business most local general stores. It's a sound strategy, no matter what "in a perfect world" theory in some undergraduate economics book says that other companies would do or not do.

dogisbadob > Steven Lang
02/09/2015 at 19:20

Actually, Rock Auto is often if not usually cheaper than Amazon, even after shipping (except for really heavy shit like brake discs). Also, shox.com has the best prices for shocks, and free shipping.

And don't the dealers get parts direct from the automaker? Or do you work at a used car lot?

Supposedly, most of the cost of parts is storage/inventory. The parts stores are mostly crackhead prices anyway, at least what retail customers pay. However, I was under the impression that jobber prices (the price shops pay for their parts) were a lot lower than retail, approximately what Rock and Amazon charge.

So therefore, I see this only impacting retail customers (the DIY group)

kis_ev > Steven Lang
02/09/2015 at 19:20

I've ordered air filter, cabin air filters, and wiper blades from Amazon in the past during their sales. Two of the filters were smushed but still usable. Amazon will need to address their packing issues as I've had some items broken in transit with insufficient bubble packing.

I think Amazon could take away some marketshare from Napa, Autozone, and other brick and mortars, but most mechanics don't use the internet and sometimes it's preferred to handle core swaps in person (axles, batteries, transmissions, etc).

AFSpecialSauce > Steven Lang
02/09/2015 at 19:20

Except I can't recycle my engine oil and filters through Amazon... So I guess there's that going for the stores.

It's a "Porch-uh" > Steven Lang
02/09/2015 at 19:21

I got a flywheel and clutch kit from Amazon for my E39 M5. Same factory replacement parts my local shop quoted me for less than their cost ($550 vs. $1200). Plus free shipping with Prime, which still boggles my mind considering how much all that weighs.

Toyotathong! > Steven Lang
02/09/2015 at 19:22

Competition's a bitch.

GhostZ > '69 tego
02/09/2015 at 19:24

Yeah, but the question is whether the difficulty difference from having someone help you in person and having videos helping you is larger than the difference of cost of not having to do it at all and having a mechanic do it.

Even things like headlights are quickly becoming a "Send it to the mechanic only" thing.

Steven Lang > davedave1111
02/09/2015 at 19:25

The auto parts business is pretty immense and Amazon is trying very hard to stretch their tentacles into every which direction of the marketplace.

The greater battle in this market segment will likely come in Amazon's ability to partner with parts and distribution companies that can fill in where Amazon's more traditional delivery methods have fallen short.

tsy1987 > f86sabre
02/09/2015 at 19:26

but TBH, you probably dont need the exact same crush washer for the drain plug. But i know what youre saying.

sammyjay > Steven Lang
02/09/2015 at 19:28

Maybe it's just because I know the parts industry from within, with my family previously owned/operated a few NAPA stores for 35 years, but I don't like going to Amazon for general purpose parts. The process just isn't what I need it to be right now. Specialty tools and electronics are another thing entirely...

I always get my replacement parts from the local NAPA, be it oil, filters, brake rotors, pads, shoes, wipers, batteries, lightbulbs, etc, etc. The process is infinitely easier for me to call the store up, tell them exactly what I need because I know exactly what I need down to the part number, and pick it up 15 minutes later and have my repair done that day. When I've tried going to Amazon for parts in the past, I get inundated with universal fit parts, incorrect descriptions of parts (90% of the time it's the wrong model year), no Saturday/Sunday delivery, and completely irrelevant parts. I've never had an issue with NAPA refusing a warranty claim on the two occasions I've had to do it. Not saying I've ever had one with Amazon, but the fact stands.

If Amazon had RockAuto's search function by year, model, trim, engine, and drivetrain options coupled with Prime, I'd be much more apt to switch, but as it stands now, I always go to NAPA for my run-of-the-mill shitbox repairs.

'69 tego > Steven Lang
02/09/2015 at 19:28

I can't see this happening to the extent that it causes one of the national parts chains to go out of business.

that biggest advantage to amazon is also their biggest weakness. they are not a physical location.

this may not be a big issue for their other retail operations, but a parts store is somewhere you go

when you have a breakdown, or need parts now. plus when you're replacing that water pump and break a hose clamp or find something else that needs to be fixed, are you gonna wait 48 hours for the parts to show up on your doorstep?

I use rock auto for major "over the winter" type of projects, but even then I can usually find the parts locally for roughly the same price when you figure in shipping.

case in point, I just replaced the front struts on the wife's car. I bought em at napa for about $5 more than rock auto but I was able to get them the same day and have the car done.

Steven Lang > RallyWrench
02/09/2015 at 19:29

"The car will be forever tied to its manufacturer, reliant upon updates & OEM support, ever more..."

This is the biggest fear we have in the retailing business at the moment.

Depressoiscool > Steven Lang
02/09/2015 at 19:29

this makes me sad but i completely understand it, and it is going to happen.

let me wax poetic a bit. I love my auto parts store, they always help me with what i need to do, what can be done, and even where to get used parts from. The auto parts stores by me are mostly filled with knowledgeable and helpful people. I will miss when they are gone, but know it is going to happen.

Joshua > Steven Lang
02/09/2015 at 19:30

Amazon is the first place i check for auto parts. Unfortunately my project calls for some pretty specific parts so Amazon has not been as competitive as Rockauto, nor nearly as well organized as that site. That being said, my rock auto order is taking its sweet time in showing up and at this point is holding up my project.

Frenchlicker > '69 tego
02/09/2015 at 19:30

If this relates to talking to a parts store person I don't think I would prefer their help over the internet's help. I guess it depends on a person's learning style but if I watch a thoroughly well put together video I am normally able to do the job myself. If I cannot I will pay a licensed professional.

William T > GhostZ
02/09/2015 at 19:32

It sure is, along with a ton of conflicting misinformation and bad advice.
Specialists are, in my experience, a much more reliably accurate source.

William T > Steven Lang
02/09/2015 at 19:32

If only their database of compatibility was way better...

davedave1111 > GhostZ
02/09/2015 at 19:33

"beyond that there is public policy economics, private equity, and academic economics, all of which fight at eachother's throats about things they disagree with."

Economists of different stripes don't tend to agree on much. That Amazon operates in a contestable market is one of those few things, though. (They'd have some rip-roaring set-tos about what the implications of that are, but they'd agree on the basic fact.)

"You're assuming a) they're going to raise prices at all instead of subsidizing them with income from other sources just to maintain the market"

No, I'm assuming that if they did, that would be just fine. It's only when they try and raise prices to exploit the monopoly that it would become a bad thing.

"b) That getting over the barriers of entry in opening those shops (especially if the corporate head of the franchise goes down) is going to not exponentially increase as time goes on."

Well, that seems a fair assumption, but no, it's not one I was actually making. The shops reopening was just an example of how the competition is in the sale of the products, not in the way one sells them. It's not like Amazon has a monopoly on distribution and deliveries, or even anything close to one.

Don't forget, if there's lots of money to be made, there are people out there called venture capitalists looking to fund startups who'll be perfectly delighted to provide the necessary funds. We're not talking about mom-and-pop shops opening up in competition to Amazon, really.

"c) That the distribution networks that companies like Autozone use will still be up if they go out of business, and will be accessible by anyone wanting to compete."

I can't see how that assumption would bear on this point, but, again, it does seem like a fair assumption given the widespread need for delivery/distribution services in all other areas.

"d) That amazon will not continue to reduce their cost, but stop reducing their price once other companies go out of business."

See my answer to (a). That would be a good thing, and we would be perfectly happy for them to have a monopoly by virtue of being a cheaper provider of their service than anyone else.

"Amazon used this strategy to gain the market share they have now back in the post-dotcom bubble. In fact, Amazon didn't make a profit for years until very recently"

Well, I was under the impression they're still using it. But it's just about being a cheaper provider of a service, not about undercutting the competition to put them out of business so they can raise prices and make excess profits.

I must have missed it if they've actually started declaring significant profits instead of reinvesting them all.

" and Wal-Mart used this strategy in the early-2000s to put out of business most local general stores."

Sorry, you're saying Walmart, famously the cheapest place to shop, has used the strategy of putting competitors out of business and then raising prices to above previous levels? That doesn't make sense.

GhostZ > William T
02/09/2015 at 19:33

Thing is, I wouldn't consider auto parts store employees any more specialists than people who post on a particular car's forum, and definitely nothing compared to your average mechanic.

HopelessNissanGuy > Steven Lang
02/09/2015 at 19:35

As someone that worked at several O'reilly locations over about four years or so, I can truthfully say that the profits that parts stores make on pretty much everything that they sell is enough to make squeamish people pass out. For a long time several years ago employees had the ability to see what the company actually had invested into each part, then later on they removed this ability for the purpose of being able to raise the price on them more (and presumably to cut employee discount margins). I understand that modern companies have to keep up with inflation but within about three months every storefront item in the store had an updated, and raised, price tag. With that out of the way my opinion is that O'Reilly at least is ONLY in it for the money. Employee treatment is shit and wages are even more shit for the amount of responsibility put on most of the team members. If there is a way for the company to squeeze a little bit of money out of anything, they're going to do it. Because of that attitude and my inability to make any kind of a decent living over those four years I won't step foot into any parts store anymore. If anything major happens to break I am perfectly happy getting a ride with someone for a couple of days while waiting for a part. There is a very valid reason that most parts stores don't have people that know what they're talking about in them anymore.

TLDR: Down with parts stores, they're way too money hungry for their own good.

Steven Lang > HopelessNissanGuy
02/09/2015 at 19:37

This market is well overdue for competition.

f86sabre > tsy1987
02/09/2015 at 19:41

true. But it would be handy if they carried anything that would fit.

'69 tego > GhostZ
02/09/2015 at 19:41

the biggest thing you can't get from a video is realtime help if you hit a snag, have a question etc.

don't get me wrong, there are some very well put together videos out there for a lot of things.

but when you get in a jam, do you have someone you can bounce questions off of?

I get a lot of that from friends and family.

webmonkees > Steven Lang
02/09/2015 at 19:41

With older cars, it's definitely worth looking at rockauto if you know your parts.. and are careful about the shipping.

I figure my final bill for a elaborate repair was about 35-40% of the brick equivalent.

But realize that they will have NOS Good Stuff (OEM spec) in limited quantity, ever.

They'll probably be cycling the Cheap Stuff (aftermarket/ generic) as long as it's in the parts stream. So save wisely.

HopelessNissanGuy > Steven Lang
02/09/2015 at 19:42

Absolutely. The current "competition" between parts stores isn't really competition at all as prices and availability between most of them are more or less the same. If one raises the price of something, the others will as well so they can even the market out again and continue making steady sales on that product.

'69 tego > GhostZ
02/09/2015 at 19:42

boy you got that one right GhostZ... if they can't find it on their computer it doesn't exist.

and don't try asking then for the parts catalog :D

cobleymj > Takuro Spirit
02/09/2015 at 19:43

If you've returned ANYTHING through them, you should know they're happy to eat the cost unless its obvious you're making a ridiculous claim.

Steven Lang > HopelessNissanGuy
02/09/2015 at 19:43

I deal with so much it's disgusting.

Spitfi-r > NaturallyAspirated
02/09/2015 at 19:45

I ordered brake rotors from Amazon last year. They sent the wrong part, but I already had my brakes apart when i realized the rotors were wrong. I called Amazon and they agreed to pay my cost to buy the rotors that day at the dealer and they paid to ship the others back. The dealer cost was 3 times Amazon's price.

IDROVEAPICKUPTRUCK > Steven Lang
02/09/2015 at 19:47

I used to do most of my autopart shopping on Rockauto, now I almost exclusively use Amazon. Let's not forget that Amazon Prime can give you 1 day shipping for $8 too, which I've used a couple of times.

Steven Lang > webmonkees
02/09/2015 at 19:48

A lot of owners of older Mercedes models are finding that out firsthand.

Jimmy Joe Meeker > Steven Lang
02/09/2015 at 19:48

I've bought some autoparts from amazon. They are kind of hit or miss on price. Still most everything I get from rock auto. Sometimes a local parts store but when the parts store makes me order it and wait... one place actually wanted to charge me for the shipping. they sort have lost their purpose in life.

Amazon's website does not sell autoparts well. It just doesn't work for shopping for auto parts. It's fine if you know the part number of exactly what you want before you go looking for it on amazon. Rock Auto's catalog is pretty much the best I've used. Detail, part numbers, photos, etc. The best thing about Amazon autoparts? They don't do cores. This means one can often get a competitive price for a reman and not pay a core charge. Keep your original calipers if that sort of thing matters to you or just don't have the hassle.

On another note I've been avoiding most auto parts stores since before most people heard of the internet and before the web started. Ye olde mail order over the phone. From counter people making commentary to just poor quality parts I started doing things differently. Amazon is unlikely to change the share of my business they get.

'69 tego > factsonly1
02/09/2015 at 19:49

I've never had any problems getting warranty stuff taken care of at a parts store either.

you just need to have your receipt. and usually the bad part in hand.

some things are sold on a no return basis (usually electronics) but those are usually stated as such.

55_mercury > Steven Lang
02/09/2015 at 19:49

if I'm fixing my truck on a Saturday I need those parts... Saturday. Not 24 or 48 hours later but more like 30 minutes which is why I go to napa and call it a day. Hence why Amazon can't compete in that manner

chuckjaeger > Steven Lang
02/09/2015 at 19:49

I once got stranded due to a burnt out fuel pump in the middle of summer in Northern Nevada in my '86 Westfalia. Went to the local Napa, Autozone etc and they could not track me down the part I needed and get it to me in a reasonable time. I was going to wait, not long (maybe 48hrs) but I had cut it fine in terms of time and had to get to work when I got home so it was far from ideal.

I ordered the part but in the evening thought I would go on some VW Vanagon forums (just an unbelievably incredible community of vehicle enthusiasts) as these guys are so helpful they would literally drive across the state to help a fellow owner out and it's the type of car where we all have old parts stockpiled. The response was epic but alas nobody was in town or they were just too far away. However, someone suggested Amazon (I had never thought of this) and even sent a link to the part. It was in stock, cheaper and I could have it at my hotel the next day with free shipping so I ordered it and was on the road an hour after getting the part.

Amazon is now the first place I go, not an exhaustive selection I admit but it gets better all the time.

One question, has anyone done core exchanges on things like alternators etc from Amazon? How does that work?

OneMoreTimeAgainandAgain > Snooder87
02/09/2015 at 19:50

Well, say goodbye to AutoZone, PepBoys or any of the other "year make and model" robot places. The folks that works there don't even know what a car is, and have no chance of helping you work on it.

flatfour40 > Steven Lang
02/09/2015 at 19:53

Parts insider here, I work for a Chevrolet dealership in pa. When I was hired on last year it was to help run a franchise..... Let's just call it consolidated auto parts. I was hired to stir up their aftermarket parts sales. The dealership is in a semi rural location (one stop light) and with a Napa down the road that only carries parts for malaise era cars, and the next biggest chain 30 minutes away, but our service department was growing at an astronomical rate, and the need for quick turn over was a must. So we invested in consolidated auto parts and purchased 200k in product.

The next battle was trying to convince wholesale customers that the aftermarket parts that we had told them were garbage for years compared to delco were what you should be buying.

In the year we have been open I have seen less than 10 walk in customers, and every garage we wholesale to constantly cries about how much of a better deal they get at "Harry's auto parts." So prices are always below the 25% mark up threshold.

My question is will amazon be able to play the costgame with the locals?

Amazon may have same day shipping, but between the network of distributors we have set up with my daily shipping looks a lot like this

11pm consolidated auto

1am GM delivery

2am acdelco

12pm consolidated

2pm consolidated/ac delco

Oh that consolidated parts in another state?

Order before 10 and I'll have it by 330

Try me amazon.

foop > Takuro Spirit
02/09/2015 at 19:55

Because that never happens when an auto shop gets a defective part! It only happens when you order off amazon!

Vzwolf > Steven Lang
02/09/2015 at 19:57

It's so interesting you posted this, I just bought my first auto part on Amazon a few days ago. An oil filter for my Chevy. It was great to use, and I needed it the next day so $5 for the overnight shipping wasn't bad.

CobraJoe > Steven Lang
02/09/2015 at 19:58

One place where parts stores have an advantage: returns. Return postage is a pain, and the delay in getting the right part can keep a disabled car in the garage for a lot longer.

Besides, rockauto is cheaper and easier to find the right parts.

James May is my spirit animal > HopelessNissanGuy
02/09/2015 at 19:58

With Ebates, and Advance Auto Parts coupons, I've never not taken 30% off or more from the MSRP at their online prices. When I go in the store and pick up my parts, I feel like the people who don't know are in another world. Seriously, 5 qt of Mobil 1 synth after ebates and coupons for $20.81 (incl. taxes).

Bam.

Spitfi-r > GhostZ
02/09/2015 at 20:00

another thing to consider is brick and motor stores don't have the space to stock a large enough variety of parts. I have a couple of BMWs and the parts stores simply don't stock parts for my cars. I can sometimes find things like an upper or lower rad hose, a belt, and spark plugs but anything else has to come from an online source or the dealer. The dealer also has a very limited parts inventory—and usually have to order parts in from a warehouse.

Chromeboy42 > Snooder87
02/09/2015 at 20:03

Its already been said, but I'll give you my spin on it. Customer Service is terrible at most of these stores, 1 out of every 10 employees are actually knowledgeable and helpful, customers don't like that. Online you can be taught without talking with a person who probably doesn't know what they're talking about. And to all those who say that the internet doesn't have clear instructions or isn't as good as a real person. Bull Shit. Sorry. But seriously, out of billions of people online, you can find one of them that can help you in a meaningful way. Reddit is a beautiful site that can solve almost any automotive problem if you just ask.

Maybe its just me growing up with amazon that I prefer its model to the store, but really I think it is better for consumers. Missing a wrench? Reddit will inform you before you start and you can bundle it in with your amazon shipment. Simple and fast, plus 100% more informative if you actually put in the effort to search more than just the first page of google

. Then again for the older generations I guess this could be hard. So I'll offer a compromise. We'll let all the auto retail stores turn into what Radio Shack has become (became?) a store from the old times that facilitates the luddites who can't change. Then we you all die out the rest of us will enjoy our sweet Amazonian overlords.

I'm truly sorry if this comes out harsh, but I can't stand these stores and I'm happy to witness their demise. If you feel they're better than online then go ahead and enjoy it... while it lasts HAHAHA *Evil Laugh Intensifies

ScaldedApe > Steven Lang
02/09/2015 at 20:04

I've switched to Amazon and never looked back. Their returns process is fairly painless if you're dealing with Amazon and not a third party seller, plus I can order the parts on my lunch break from my desk and not have to make a trip into town. I'm a Prime member as well so it's here within 48 hours.

The day I switched to Amazon was when I went into Autozone to grab a fuel pump for my 66 Chevelle. It had a 350 engine swapped in by the previous owner. I asked for a fuel pump for a SBC 350 and the kid behind the counter said he needed the vehicle information...after painstakingly providing him with every spec on my vehicle, he said, "I'm going to have to go get someone...a 350 motor doesn't show up as an option in the computer for your year model. You sure it's a '66?"

v8RWD4doorSTICK > Steven Lang
02/09/2015 at 20:04

its funny that this is posted.i bought a old truck that needed some minor things.

hood release cable

hvac electrical plug

a dash piece because the previous owner decided to paint it with a texture paint from the early 90s

and a tailgate handle plus innards for it.

I priced them out between amazon and the local parts stores.

Hood release cable $25 from amazon...local $85

Tail gate handle and innards were $30 from amazon amd $70 from the local store.

hvac electrical plug. $125 amazon and $195 local store.

Dash $70 through amazon seller and $300 from wrecking yard.

I saved about 400 by going through amazon.

Travis M. Cotton > Steven Lang
02/09/2015 at 20:05

Auto zone is pretty competitive price wise and I can opt for store pickup and if there is a core no worries. There is usually a coupon on Dealnews every couple of weeks as well. The downside is some parts are more than 2 days.

I figure Amazon will just have you ship the old part back for free for things that have a core charge. Print the label and drop it off done.

93Miata > tsy1987
02/09/2015 at 20:06

Chances are the guy behind the counter won't know how to look up a 14mm crush washer in the computer and will tell you they don't have it.

NoneOfYourBiz > Snooder87
02/09/2015 at 20:09

In Canada at least, the local auto parts suppliers suck.

I've given local retailers every opportunity to win my business.

I would have been happy to pay a bit more to have immediate access to parts and knowledge.

The local stores don't have the selection, the knowledge, or a price advantage.

They've failed me so many times I've given up. Online retailers are my go-to now. (Amazon, eBay, whatever)

BobWellington > Steven Lang
02/09/2015 at 20:13

I find you can often get better deals at Advance Auto Parts with the ridiculous coupons they have. I saved $40 on a battery, and when it died (something was drawing power), they warrantied it in store without any hassle. But Amazon does have good prices on certain things as well.

I am Jack's complete lack of compassion > GhostZ
02/09/2015 at 20:14

Good luck getting advice from Amazon on how to fix your shitty car :)

Prophet of hoon > Steven Lang
02/09/2015 at 20:16

Amazon sucks for auto part searches - so, if you're a dealership, you can do vin and part number searches; however, the vast majority of parts bought by hobbiests will either come from the big 3 (Summit, Jegs, Speedway), or through their local parts store. With that said, local parts stores don't exist - while, franchises like NAPA exist; the national chains (who also sell on Amazon) aren't going away because until Amazon builds their own warehouse - they're at the mercy of the parts-house chain. Recent example - Autozone did 25% off that was at least 15% lower than anything else... Amazon makes it quicker, but pay attention - just because it says "Prime" doesn't mean it's coming sooner. Just today I got parts from Yukon (manufactured and distributed in Washington State - where I am) that took nearly a month... so no, they've nothing to worry about.... however, the manufacturer like GM, Ford, Nissan, etc have A LOT to worry about.