How MotoParts Went Online Profitably with PARts
MotoParts has been a long time wholesale B2B supplier of automotive parts and car accessories in Australia, being one of Australia’s leading auto parts distributor, when they decided to go online to further grow their business.
This decision was prompted by the rapid growth of the Australian online automotive parts sales industry (estimated to be worth $380.3 million in 2014-2015 and growing annually at a compounded rate of 17%) centred on New South Wales, Victoria and Queensland – areas that have the highest number of kilometres driven.
The challenge was that the online auto parts and accessories market share in Australia was dominated by three online big boys: Super Retail Group Ltd. (16.9%), Robert Bosch (Australia) Proprietary Ltd. (4.6%), and Car Parts Australia (less than 1%). The rest of the Australian online auto parts and accessories market share was catered to by many other companies and individuals.
To confront these online challengers, MotoParts had to move online fast, profitably, and at a reasonable cost. Scott Shillinglaw, online director for MotoParts, said they decided to go with eBay as the channel to start their online presence with: “As one of the largest online marketplaces, eBay was the obvious choice for MotoParts to start our online presence,” said Shillinglaw. This also meant putting up a new consumer e-commerce website for MotoParts.
For online newcomers, the requirements of moving online is tremendous:
“We required a solution to manage product data feeds, with the added functionality of enriching and enhancing product data ready for listing on eBay. We needed to integrate with our ERP system, specifically product, pricing and inventory data along with both eBay and MotoParts’ new consumer e-commerce website. This also included receiving orders from eBay and our e-commerce website and sending shipment updates,” said Shillinglaw.
And all these had to be achieved promptly – every month of delay presented opportunities lost to other online competitors.
The e-commerce solution not only had to be robust, it had to present an immense amount of data attractively:
“At MotoParts we needed the data to be in a coherent format to allow us to list products on eBay that easily identifies a part, the vehicle it fits and in a format that people feel enticed to purchase,” continued Shillinglaw. “Buyers that would be shopping in the automotive aftermarket can be enthusiasts or do-it-yourself people and if the product data isn’t presented in a compelling way-you’re not going to make the sales,” said Shillinglaw.
Fortunately, MotoParts’ use PARts as the product data provider which makes it much easier to receive professional, global standard based and well formatted part and vehicle compatibility data. And in the mean while, Enform who provide co-ordination and or project management services for auto parts customers (read more about how Enform helped MotoParts) referred them to Fusion Factory – which had all the experience to deliver What MotoParts needed at the right time and at the right price.
The e-commerce solution MotoParts needed was Commerce Connect, collating product data received from PARts with inventory and price data from MotoParts’ ERP system data and updating the results intelligently for eBay listing. The Commerce Connect system not only delivered data to eBay, but also collected and formatted orders from eBay and delivered the data to MotoParts’ ERP system.
Fusion Factory delivered the complete MotoParts solution in just two months. After a few months of going live on eBay, MotoParts gained a 5% increase in total revenue with minimal work, and significant reduction in resource time and IT spending.
The Fusion solution works with all sales channels so will also be in play for the MotoParts retail web site launching soon. Together with PARts that means the ideal outcome of one database – multiple deployments for an integrated e-commerce strategy.
MotoParts is now ready to add more online sales through their new retail web site using PARts data.