Индекс УДК 658.155
Дата публикации: 27.02.2025

Strategies to increase profits through online selling of auto parts

Drozhzhin Sergei
Specialist degree, Industrial University of Tyumen
Abstract: The article examines the growing online auto parts sales market, which is an important part of the e-commerce segment. Particular attention is being paid to increasing demand for mobile applications and marketplaces among consumers, which requires companies to implement effective marketing strategies. It explores tools such as SEO optimization, content marketing, targeted advertising, and dynamic pricing that help companies attract and retain customers. The influence of artificial intelligence (AI) on automation and personalization of content is considered, which contributes to an increase in conversion and average receipt. It is concluded that it is necessary to integrate all these strategies into a single management process for sustainable growth and business development in highly competitive conditions.
Keywords: online sales, auto parts, profit, marketing strategies, pricing, logistics.


Introduction

The online automotive parts sales sector is now growing steadily due to the increased development of e-commerce and the digitalization of traditional automotive markets. This growth is facilitated by several key factors, such as technological improvements, changing consumer preferences, and enhanced logistical capabilities. Online platforms give users a range of products and a user-friendly interface for search and comparison. In addition, flexible delivery terms increase sales. The rise of the COVID-19 pandemic has catapulted online commerce and the digitalization process. This indicates increased demand for auto parts online.

According to a press release from Grand View Research, by 2028, the global B2C e-commerce market could reach $7,65 trillion, while it is expected to expand at an average annual rate of 9,7% [1]. According to Data Bridge Market Research, the global auto parts and accessories market was estimated at $697,84 billion in 2013, and by 2031 it will reach $1,087,32 billion with an average annual growth rate of 5,7% annually [2]. This trend is driven by a number of interrelated factors, including urbanization, economic growth, and changing consumer preferences. The proliferation of automobiles has led to increased demand for automotive components, necessitating a more efficient supply chain and distribution system. Additionally, the rise of the «do-it-yourself» culture has fostered a greater interest in vehicle maintenance and repair, creating a market for specialized auto parts and tools. Consequently, companies engaged in the automotive aftermarket must adapt to meet these evolving needs. They face the challenge of enhancing their online sales capabilities to cater to a broader customer base while maintaining cost efficiency. This requires leveraging advanced technologies, optimizing inventory management systems, and improving customer engagement strategies.

This study is relevant because, in all business sectors, including auto parts sales, online sales channels are becoming increasingly prominent. Unlike traditional sales, the main factors contributing to the success of a business in e-commerce, like the physical availability of products, constitute direct impacts on profitability and stability. Strategies for the growth of profits in online sales of auto parts vary from marketing tools and pricing technologies to optimization of operating costs and logistics chains management. This paper analyzes these strategies and describes methods applicable in a highly competitive global digital market. The primary purpose of this study is the systematization of existing theoretical approaches and practical methods for the growth of the profitability of online trading in auto parts.

Main part. Marketing strategies for increasing profits

The automotive parts market has been showing steady growth due to an increase in demand for cars and their maintenance. This increase is associated with the growing fleet, model upgrades, and the increase in the number of vehicles per capita. Additionally, the digitalization of the industry, including the introduction of electronic control systems and online platforms, has significantly affected the structure and dynamics of the market. A comprehensive strategy is needed to maintain stability and increase profits, as both the automotive industry and digitalization are showing an active growth trend (fig. 1).

Figure 1. Degree of digitization in automotive aftermarket

Digital channels in online sales have many advantages – they allow you to accurately target your audience, easily track results, and quickly adapt to changes. They also provide real-time interaction with the audience and have relatively low costs, which makes them attractive to small and medium-sized businesses (table 1).

Table 1

Comparison of traditional and digital marketing [3]

CriterionDigital marketingTraditional marketing
Distribution channelsSocial media, email, search engines, websites, mobile apps.Television, radio, print media, outdoor advertising.
AudienceAbility to precisely target and segment the audience based on data.Limited targeting options, more scattered audience.
Measurability of resultsEasy tracking and analysis of metrics (CTR, conversions, ROI) in real timeMore difficult to measure effectiveness (surveys, research).
Implementation speedFast campaign execution and quick adjustments to strategies.Longer planning and execution process for campaigns.
CostTypically lower, especially for small and medium-sized businesses.Often higher placement costs, especially for TV and print media.
Customer engagementReal-time interaction through comments, reviews, and surveys.Limited interaction, mostly one-way communication (company to customer).
LongevityAds can disappear quickly, but content remains online (e.g., blogs, videos).Ads can have a long-term effect, but access to them may be limited.
CreativityBroad opportunities for creative approaches and experimenting with formats.Creativity is restricted by format (e.g., 30-second TV commercials).

In fact, digital marketing allows for more precision targeting, measurable in real time, faster to execute, and cheaper costs compared to traditional marketing. It’s one of the better ways to engage customers and be more creative at the same time. Again, it would be very much dependent on what the purpose and objective of the marketing campaign.

As stated earlier, the online auto parts business of today is high in growth and has become one of the substantial components of e-commerce. It has also been triggered due to the change in consumer preference by the usage of mobile applications and marketplace sites. Due to this, such a demand for platforms has arisen, showing a higher inclination towards digitalization and convenience of online shopping. These platforms went even further, offering sales opportunities to individual entrepreneurs along with the big companies. By democratizing market access, they created more competition. Therefore, this is a driver of innovation in the industry, providing a better user experience, higher value chains efficiency, and flexibility to both the retailer’s and the consumer’s operation.

Marketing tools bear the main burden in ensuring competitiveness on digital platforms. SEO optimization and content marketing methods are the most effective. An effective SEO strategy includes optimizing product pages using targeted keywords, creating a blog with thematic articles in this case, about car maintenance – and integrating video content such as repair instructions. Targeted advertising and remarketing are important tools for increasing conversions [4]. In particular, personalization of ads based on browsing history and user preferences allows you to increase repeat sales and average receipts. Additionally, according to a study by Sahni et al (2024), among 3,3 million USA users, switching from current levels of advertising to lower levels reduces the number of visits to new websites by 10% [5].

Content marketing is a strategic approach to creating and distributing valuable, relevant, and consistent content with the purpose of attracting and acquiring a defined audience. The key motives are brand awareness, building trust, and engagement. Among the main principles surrounding the success of effective content marketing, three core concepts are related to attracting interest, relevance, and delivering utility to the target audience. In the age of digital transition, the content marketing strategies got diversified into more varied formats than ever. Text information-material, such as blogging and articles, even social media updates, remains core for content marketing since these allow more detailed information that can be helpful, with highly developing demand for profound knowledge and skills.

Visual content has recently come to the fore, as it can present information fast and in an engaging manner with the use of images, infographics, and videos. Images and infographics are very efficient in breaking down complex topics into pieces that are easy to digest, thus making them accessible to a wider audience. Videos, by putting together text, images, and audio, offer an experience that is more immersive and hence more memorable and impactful than static content.

Audio material, therefore, also constitutes an important component in content marketing: podcasts, audiobooks, and radio ads are just some of the elements in this format. Podcasts represent an easy mobile way for consumers to get their information, while audiobooks and radio ads represent the audiences that learn best through their sense of hearing. Besides, audio content can be used to build emotional bonding and reinforce messages about the brand.

These are mostly applied in most content marketing strategies to create a multi-channel approach appealing to the diversified tastes and habits of modern consumers. Such a multimodal approach makes the overall effectiveness of the content really great because it impacts the intended viewers through sensory channels. Data and analytics also play a fundamental role in content marketing. Effective content marketing is not only the production of great quality content but also the measurement of performance through the change of strategies that are based on the insights gathered from the data analysis. Marketers can track engagement rates, conversion rates, and time spent on pages to determine which content resonates better with their audience for optimization of content marketing efforts [6].

With regard to digitalization and technological progress, AI is used actively to automate the process of content creation. AI makes it possible to create texts, images, videos, and audio materials focused on the interests and needs of the target audience. This considerably accelerates and simplifies the process of content production, and at the same time, guarantees its high quality and relevance. The solutions described above improve the quality and effectiveness of SEO marketing [7].

Pricing and logistics strategies

Dynamic pricing is a live form of online trade for auto parts. It is derived from adaptive variations of prices within the light of different factors. Here, the fundamental factors are shifts in demand and seasonal changes or conditions of the marketplace at any given moment. The price shifts automatically with account of competitors’ moves. Comparative price analysis allows consumers to estimate the cost of similar products offered by different sellers. More transparency in pricing policies will help increase consumer confidence and encourage them to make purchases.

Meta-search platforms and large online retailers extensively use dynamic pricing to optimize sales strategies. To successfully apply this method, it is necessary to constantly monitor the actions of competitors and implement automated systems for quick price adjustments based on changes in the market. Research has shown that dynamic pricing increases the efficiency of online auto parts sales, leading to increased profits and customer satisfaction. [8].

Regarding logistics strategies, it should be noted that the speed and reliability of delivery are the most important factors in customer satisfaction in the online auto parts trade. Using distribution centers and partner warehouses minimizes delivery time, and outsourcing this task reduces the burden on our own staff, as well as reducing warehouse rental costs and related costs. It is also an effective strategy to locate warehouses in key geographical locations, which reduces logistics costs and speeds up order processing. This is achieved by reducing the distance between warehouses and pick-up points, which reduces the time for transportation and order processing. Return guarantees and exchange policies play an important role in building customer trust. Companies that simplify the process of returning goods, for example, by introducing automated refund processing systems, contribute to increasing customer loyalty. This is achieved by reducing the time for processing refunds and reducing the number of errors. The integration of real-time order tracking technologies increases the transparency of the purchase process and the level of customer satisfaction. Customers who have access to information about their order status, product characteristics, image, and instructions are less likely to contact customer support. This allows the company to significantly reduce the operational costs associated with processing customer requests.

An integrated approach to logistics management, including the use of distribution centers, partner warehouses, outsourcing, optimal warehouse location, as well as the introduction of modern tracking and return technologies, contributes to improving the efficiency of logistics processes and customer satisfaction.

Conclusion

It is possible to identify the basis of competitive advantage and profitability in a digital economy from the analysis of strategies for enhancing profits in online sales of auto parts- marketing approaches, which can drive traffic and boost conversion into selling more through either SEO optimization, content marketing, or targeted advertising. Pricing strategies, such as dynamic pricing and comparative analysis, allow the facility to respond to the market variations and increase profitability. Optimizing logistics in terms of delivering goods faster and being more clear about the operations can help you in meeting consumer expectations and gain trust. The system of convenient returns and exchanges yet again increases customer loyalty and is a good indicator for repeat sales growth. This paper puts much emphasis on systematic management as a role in the entire process of online sales towards sustaining profit growth. Future research might be directed towards the impact that new technologies such as AI might have on the auto parts market.

Библиографический список

1. B2C E-commerce Market – In-Depth Industry Analysis, New Trends, and Future Growth Potential 2021 – 2028 / Grand View Research, Inc. // URL: https://www.abnewswire.com/pressreleases/b2c-ecommerce-market-indepth-industry-analysis-new-trends-and-future-growth-potential-2021-2028-grand-view-research-inc_592741.html (date of application: 11.01.2025).
2. Global auto Parts and Accessories market — industry trends and forecast until 2031 / Data Bridge Market Research // URL: https://www.databridgemarketresearch.com/ru/reports/global-auto-parts-and-accessories-market (date of application: 12.01.2025).
3. Fomicheva E. Digital marketing tools in the United States and global marketing industry // Trends in the development of science and education. – 2024. – № 115(6). – P. 86-90. DOI: 10.18411/trnio-11-2024-255 EDN: OVSRLC
4. Kospai D. K., Alimzhanova L. M. SEO optimization as a key tool for promoting a company's brand and products: a study of methods // Intelligent Technologies in Transport. – 2023. – № S1(35-1)). – P. 70-76.
5. Sahni N. S., Zhang C. Are consumers averse to sponsored messages? The role of search advertising in information discovery // Quant Mark Econ. – 2024. – № 22. – P. 63–114. DOI: 10.1007/s11129-023-09270-z EDN: VKNNNH
6. Sysoeva T. L., Popova A. A. Content marketing management in the context of business digitalization // Business Bulletin of an entrepreneur. – 2023. – Vol. 2(16). – P. 92-95.
7. Tretiakov I. Personalization of marketing strategies using AI and expanding opportunities for effective consumer engagement // Slovak international scientific journal. – 2024. – № 90. – P. 19-21.
8. Kastius A., Schlosser R. Dynamic pricing under competition using reinforcement learning // J Revenue Pricing Manag. – 2022. – Vol. 21. – P. 50–63. DOI: 10.1057/s41272-021-00285-3 EDN: AUPLRO