The subdivision category was sold in "seconds", and the annual GMV broke through 10 billion! The automotive "aftermarket" opportunity is enormous

Compared with the dazzling and autonomous new batch of new cars in China, the overseas market is a different scene. New car supply continues to be constrained by the supply of related parts, preventing new car manufacturers from fully utilizing the capacity of their final assembly plants.

According to Wards Intelligence, the average capacity utilization rate of an assembly plant in North America was 70.3% in the fourth quarter of 2021, down from 85.4% in the fourth quarter of 2020. This will continue in 2022, and inventory accumulation of new vehicles will remain sluggish.

Interestingly, on the other side of the new car supply chain, American consumers have directly turned their wallet openings towards used cars, modifications and renewals of auto and motorcycle parts.

On April 14, eBay Motors participated in the inaugural "New York Auto Parts Show" and faced unprecedented supply chain challenges, launched a series of "Re-Concept cars" for the first time, including many star superstars and some of the industry's top manufacturers, such as actress Sydney Sweeney, emerging actress Emelia Hartford, brand Hernandez and Grind Hard Plumbing Co. and so on.

The United States is the world's largest car ownership country, with 290 million car ownership, an average age of up to 12 years, and a market potential worth trillions of dollars. Behind this, the concept of renovating old cars that reflect DIY repair and DIY modification by American consumers makes the demand for related auto and motorcycle parts higher than that of other countries.

Under the challenge of supply chain, more and more car owners, including professional mechanics, car DIY enthusiasts and daily commuters, have become car mechanics with the concept of renewing old cars. For a long time, whether it is from the platform's data feedback or the oral narration of the seller's friends, it is not difficult to know that eBay Motors has always been one of the preferred platforms for these "repairmen" and fans to find spare parts and give old cars more new vitality.

Did you find it? Including me, you will discover the vast majority of eBay sellers who seem to know around you, more or less they have layout motorcycle accessories.

In fact, the demand of buyers coupled with the user education of the platform has also made more cross-border sellers continue to subdivide categories to develop into professional sellers, and more and more sellers have benefited from the dividends of the auto and motorcycle parts category and the market dividend, and have become the seller groups of the dominant categories on the platform.

Earlier, there were many legends: "On the eBay platform, every 2 seconds there is a car lamp transaction to sell a set of wheels and tires every 6 seconds." In fact, the annual sales scale of eBay auto and motorcycle parts is more than 10 billion US dollars, from the relevant category data performance, the "gold-absorbing" ability of auto and motorcycle parts is indeed so: the platform deals 1 car every 3 minutes, 120 car exteriors and interiors, 40 lamp assemblies and light bulbs, 30 wheel tires and accessories, 30 sets of brake products, etc.

Based on this, many peripheral sellers who have been deeply involved in the auto and motorcycle parts category and have known for many years have indeed earned the first bucket of gold, the first car, and the first suite of life by virtue of this category. Earn a lot of money.

The data shows that since last summer, sales of "project cars" on eBay Motors have increased by 158%; auto parts and accessories generate more than $10 billion in GMV per year; one in every three eBay shoppers buy auto parts and accessories; according to data released by eBay, the growth rate of the following auto parts categories exported by Chinese sellers to Europe and the United States is above three digits.

Auto & Truck Parts - Seats +226%

Auto & Truck Parts - Wheels +183%

ATV and UTV Accessories - Engine Parts +147%

Auto & Truck Parts - Headlights +119%

Motorcycle Accessories - Tire Inner Tube +116%

The automotive aftermarket contains trillions of dollars of business opportunities, with the continuous increase of overseas online market share, auto and motorcycle parts "aftermarket" is also growing rapidly. In 2020, the global auto parts aftermarket online market size is about 56 billion US dollars, and it is expected to reach 140 billion US dollars in 2027.

In addition, according to McKinsey's report "After the Epidemic: Looking Forward to the Automotive Aftermarket" released in April 2021, due to the impact of home isolation and offline repair shop closures, more and more end consumers in the United States have begun to buy auto parts online, and the report also pointed out that this trend of transformation in purchasing methods will continue.

In fact, around the strategic category of eBay auto and motorcycle parts, the platform category team has long given the answer: in 2022, the strategic category of eBay auto and motorcycle parts mainly covers 6 series and 300 sub-categories, covering the seven key markets of eBay auto and motorcycle parts.

eBay auto and motorcycle parts strategic category core category

Auto & Truck Parts

Motorcycle accessories

ATV & UTV accessories

Snowmobile accessories

Ship accessories

Automotive Tools & Equipment

The instability of cross-border e-commerce has increased, and Chinese sellers with both supply chain and category advantages have more opportunities for e-commerce export and brand globalization than ever before.

In 2022, especially in the face of the inflection point of the peak season in the second half of the year, many sellers are deeply aware of the development strategy of brand going overseas and deep cultivation of categories, and give full play to the global competitiveness of Chinese manufacturing to enhance the advantages of categories. In this historical process, sellers with high-quality resources, platform resources and operational resources that integrate the supply chain can enter overseas markets more smoothly.

In addition to The advantages of Chinese manufacturing and categories, the "fast lane to the sea" of the eBay platform auto and motorcycle accessories category is actually one of the effective strategies for Chinese sellers to lay out the global market. I look forward to more sellers of insight, to communicate with me more, learn from each other and make progress, and dig into a huge automotive "aftermarket".

Resources:

[1]https://blog.nada.org/2022/04/05/nada-market-beat-supply-chain-disruptions-suppress-new-light-light-vehicle-sales/

[2]https://mp.weixin.qq.com/s/jDRrxZpyqjdYikoFvqoBew

[3]https://mp.weixin.qq.com/s/hqaSq_BxqqjHtgpacvMC3Q