How One Dealership Turned Online Part Sales into a Success Story

In 2021, 495 Jeep in Lowell, MA, led by General Manager Shah Ghandchi, set out to launch an online parts store, but the journey had a rocky start. The dealership, a family-owned business, faced numerous challenges. “We were stuck back in 1995 selling parts,” he said. 

The onset of the COVID-19 pandemic further pressured the dealership to find alternative revenue streams as traditional car sales declined. Shah observed, “People are hanging onto vehicles now,” he noted, “and with high car prices and interest rates, more customers were looking to fix and maintain their existing cars.” This shift created an opportunity for the dealership to focus on parts as new avenues for income.

Internal Hurdles to Online Success

Transitioning to an online model required a strategy shift and a thinking transformation. “Changing the mentality of the team was one of our biggest obstacles,” Shah noted.

Shah recognized that the old ways of doing things in the dealership were no longer viable. “We were stuck in our ways, thinking that customers would continue to come to the dealership for parts,” he said. He knew that this old approach meant that the dealership wasn’t prepared to meet the needs of modern customers, who now demand more convenient online shopping options—even when it comes to auto parts.

The dealership’s first attempts to launch the online store were also met with technical and operational issues. “We didn’t have the right tools in place,” Shah admitted. The selling tools and a digital platform they were using forced Shah into an uphill battle. The dealership struggled with the complexities of setting up an online store and creating a seamless and user-friendly online shopping experience. “We underestimated the amount of work required to build a functional online store,” Shah shared. This led to a series of incomplete launches that failed to gain traction.

Forging Ahead with Teamwork and Modernization

In 2022, the dealership made another attempt to launch its online parts store, and this time Shah knew exactly how to harness his success. “It was just getting the right team in place,” Shah explained—and that’s exactly what he did. That team has helped Shah create a powerful parts-selling machine and now possesses the necessary skills and commitment to embracing change.

Finding his foothold in the digital space also required investments in modern technologies and streamlining operations for an online shopping experience. “We knew we had to create a system that was not just functional but also efficient and user-friendly,” Shah explained. This involved working with RevolutionParts to create a custom website, tap into the complete Jeep parts catalog, set up secure payment systems, and arrange quick order fulfillment.

Tapping into the Power of RevolutionParts

Partnering with RevolutionParts was key the setting up their thriving online business. The platform provided a one-stop shop for setting up and managing their online part store. However, he emphasized the hard work of his talented team in actively maintaining and investing in the platform to see real results. “It’s a fancy toy, but if you don’t have a good team to take care of it, if you don’t stay up to date with it, it won’t work,” he said. 

Shah reminisced about seeing initial success. “Once the team saw the orders coming in, they realized that selling parts online was a viable strategy,” he shared. This tangible evidence played a defining role in building momentum and securing buy-in from the entire team. Since adopting RevolutionParts, the dealership has seen remarkable growth. “Sales are up nearly 300% year-to-date compared to when we first started selling online with RevolutionParts,” Shah noted with enthusiasm.

Adapting to the Amazon Era

In the Amazon era, characterized by quick, convenient shopping and near-instant shipping, Shah set out to align his parts business with heightened customer expectations. That required an end-to-end analysis of internal processes. “We had to look at every step of the process, from inventory management to shipping, and find ways to make it faster and more efficient,” he said. This included adopting new inventory management systems that provided real-time updates and integrating more advanced logistics solutions to expedite delivery times. Shah was able to achieve that with RevolutionParts. The dealership reduced order processing times and improved overall efficiency, leading to a better customer experience. Shah noted, “We recreated a perfectly smooth, fast online shopping experience, just like people are used to with big online retailers.”

Reaping the Rewards of Online Parts Sales

Once Shah and his parts team made their breakthrough, the benefits started rolling in one after another. “It’s a legitimate avenue to sell parts,” Shah said, adding that it allowed them to move parts more efficiently, take advantage of manufacturer incentives, and earn more from aging and obsolete inventory.

Capturing Success on eBay

One of the most impressive aspects of the dealership’s journey was their unprecedented success on eBay. Shah couldn’t hide his enthusiasm when he shared, “We were at a 300% increase in sales from where we were last year.” This milestone was a welcomed outcome of his team’s hard work, commitment to a seamless customer experience, and investment in strategic marketing initiatives. 

Seamless Customer Experience

“People just want to click, click, and buy,” Shah explained. This philosophy was the driving force behind the dealership’s early wins with eBay. They focused on reducing friction at every step of the buyer’s journey through clear product descriptions and competitive pricing while harnessing eBay’s platform’s simplified buying process and familiarity. 

Powerful Marketing Strategies

With RevolutionParts’ guidance, Shah implemented tailored marketing strategies to boost visibility on eBay. They invested in targeted ads and promotions to reach potential buyers actively looking for specific parts. “We didn’t settle for organic traffic. We wanted to make sure that when someone searched for a part we had, our listing was one of the first they saw,” Shah said. This aggressive approach paid off, significantly increasing his store’s nationwide reach.

Customer Feedback and Adaptation

The dealership didn’t stop at just launching the store; they actively sought and responded to customer feedback. “We made it a point to read every review and respond to customer queries quickly. If someone had an issue, we addressed it immediately and used that feedback to improve our service,” the parts manager explained. The results of these efforts were clear: their eBay store saw a dramatic increase in sales and accelerated a growing customer base. 

Looking to the Future

Shah looks towards the future with uncertainty. With the rise of electric vehicles and the potential for new types of parts to become more prominent, he plans to enter the next automotive era with the same openness and drive he had when he started selling parts online. “If EV continues, it’s going to be EV parts,” he said, noting that the industry was at a crossroads. Despite the uncertainties, Shah views them as an opportunity for more growth in the online parts market. 

Shah’s journey from initial struggles to significant success with his online part store is a testament to his drive, talented team, commitment to customer satisfaction, and openness to powerful modern digital tools. With RevolutionParts’ help, 495 Jeep has set themselves up for a bright future in the online parts market.

Driving Parts Profit: How a Michigan Parts Manager Used Online Sales to Transform Revenue

Known for having its roots in tradition, even the automotive parts industry is shifting towards online sales. Joe Kwasneski, a seasoned retail manager who runs online parts sales at Serra Automotive Lake Orion, Michigan is on the front lines of the transition from brick-and-mortar to online parts sales. His dealership, known for its extensive reach, impressive wholesale revenue, and exceptional service, has embraced online sales to redefine profitability and customer satisfaction.

Serra Automotive’s parts department has a storied history of dominating in wholesale parts distribution, covering a large area including greater Detroit, Lansing, Ann Arbor, and beyond. Serra Automotive’s parts department has established itself as a leader in the industry but Joe and Chris Hojnacki, the wholesale parts manager wanted more. 

This led to the decision to add online parts sales to the operation. They knew this was the way to expand their market reach and increase profitability.

This strategic shift has allowed the dealership to offer competitive pricing, superior customer service, and an extensive inventory to customers far and wide.

Challenges That Led to Selling Parts Online

When Joe started considering selling his parts online, he’d been facing challenges with his parts department’s reach. One of the primary issues was the limitation in distribution and geographical coverage. “We distribute parts across southeastern and western Detroit, all the way out to Lansing and Ann Arbor. We used to go all the way out to even Grand Rapids, Holland, and Muskegon Ludington,” Joe explained. However, limiting their distribution range to Jackson and Lansing was more profitable.

Logistical challenges also played a crucial role. Managing a fleet of around 12 drivers and covering large areas, including Oakland, Washington, and Saginaw counties, added complexity to their operations. “We covered a lot of miles,” Joe noted, highlighting the strain on their resources.

Profitability concerns were another factor in Joe’s decision. While they performed well in wholesale parts sales, expanding their market reach without compromising profit margins was a delicate balance. Joe stated, “We started looking at online sales as a way to add profitability without spreading our resources thin.”

Joe’s Motivation

The path forward was clear: selling parts online would allow Joe to increase profitable sales and lengthen the dealership’s market reach without bearing the strain from far-away wholesale relationships. Joe chose to partner with RevolutionParts, which offered a comprehensive set of tools designed specifically for OEM parts departments. By venturing into online sales, the dealership aimed to tap into a broader market and offer competitive pricing, leveraging their strong wholesale foundation. 

This strategic move was not just about increasing sales volume but also about maintaining and improving their market position. The dealership’s robust online presence now complements its wholesale operations, enabling them to serve a more extensive customer base and stay ahead of the competition with two increasingly strong arms of their parts business.

Joe’s Online Parts Advantage

Joe’s parts department distinguishes itself in the online parts market through exceptional customer service strategies. He puts extra effort into timely and transparent communication with customers, especially regarding order status and inventory checks. “Sometimes before I even tell them their order is in progress, I let them know that I don’t have it in my inventory and it’ll be 24 hours before I get it, but as soon as I get it, their order will be shipped three-day UPS,” Joe explained. This proactive approach helps manage customer expectations and creates trust. 

Pricing Strategy

Another significant advantage Joe has built into his parts strategy is competitive pricing. Joe highlighted this approach as he discussed how he remains competitive and profitable. 

By combining exceptional customer service with competitive pricing, Joe’s dealership has carved out a significant competitive advantage in the online parts market. These strategies attract new customers and foster loyalty in existing ones, driving sustained success.

Revenue Goals

Joe’s openness to competitive pricing and hunger to grow his revenue had him posting impressive monthly numbers from the beginning. “When we first started a few years ago we did about $40,000 per month,” Joe recalled. Over time, these figures double, with monthly revenues reaching around $80,000. Despite this growth, Joe remains ambitious, setting higher and higher targets for continued expansion. Joe aims to elevate the dealership’s monthly revenue from $80,000 to $100,000.

One key strategy to get there includes the potential engagement with eBay. Joe noted, “We’re currently entertaining getting into eBay and Amazon.” By diversifying their sales platforms, the dealership aims to capture a broader audience and increase overall sales volume.

Key Metrics

In an effort to meet his ambitious goals, Joe closely monitors key performance metrics of his online store including days of fulfillment, cancellations, and handling back orders through the RevolutionParts platform. Joe’s success relies on his commitment to timely order processing, “I stay on top of tracking overall days of fulfillment, cancellations, how long it takes for backorder products,” he stated.

Managing backorders is an important part of his strategy. Joe prefers to allow customers to place orders even if the parts are on backorder, as Chrysler fills orders in the sequence they are received. He explains, “At least if it’s on backorder, Chrysler fills the orders in which they’re received. So the customer has a chance of getting it.”

By focusing on these performance metrics and prioritizing order fulfillment, Joe positions his parts department to achieve revenue goals and further strengthen their online presence.

Obsolescence and Inventory Management Made Easy

Joe has tapped into next-level obsolescence management by selling online. Instead of letting aging inventory pile up, he leverages the global online marketplace to find buyers. This strategy, in tandem with Chrysler’s buy-back program, allows Joe to create shelf-space for fast-moving parts and release capital previously tied up in obsolete parts.

Finding a Profit Margin on Aging Parts

The wholesale parts department stays on top of their inventory and addresses parts that are not selling on a weekly basis. Focusing attention on proper inventory turns and addressing obsolete parts is another factor in maintaining profit margins. Joe added, “for dealerships needing assistance with dynamic pricing on aged parts, RevolutionParts has a great tool that saves time and maintains accurate pricing as parts age.”

Conclusion

Online parts sales have taken Joe’s parts department to the next level and made an important impact on Serra Automotive’s overall success. The move has empowered him to expand his customer reach and add to his overall profit. By adding the online business to his already thriving wholesale revenue, Joe manages to offer competitive pricing, maintain excellent customer service, and promise timely deliveries. As Joe succinctly put it, “We just looked at online sales as a way to add to our profitability and sales, and that’s exactly what it did.”

Joe strongly encourages other dealers to adopt online sales, emphasizing the untapped potential and additional revenue it can generate. “If you’re not selling online, you’re leaving money on the table,” he asserted. The investment in setting up an online sales channel is pennies compared to the potential returns. “For what it takes to start up the online business, it’s definitely worth it,” Joe advised.

Joe values his partnership with RevolutionParts for the simplified order processing, easy customer communication, and efficient logistics management tools. 

By leveraging modern tools and strategies, dealerships like Serra Automotive can also benefit from this growing sales channel and create a competitive edge in the increasingly digital OEM parts marketplace.