Art of Gears
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Amazon Auto Parts A Brilliant Disaster

By Martin Feigen

Jan 9, 2017; Detroit, MI, USA; The engine of the 2018 Honda Odyssey that was introduced to the media during the 2017 North American International Auto Show held at Cobo Center. Mandatory credit: Eric Seals-USA TODAY NETWORK
Jan 9, 2017; Detroit, MI, USA; The engine of the 2018 Honda Odyssey that was introduced to the media during the 2017 North American International Auto Show held at Cobo Center. Mandatory credit: Eric Seals-USA TODAY NETWORK /
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Anyone who has gone to their local auto parts store knows they do not carry much on hand. Amazon is looking to get into the lucrative auto parts market and save consumers money.

The traditional retail auto parts industry used to be built on a vast on hand inventory of parts. Over the last decade, all the major retailers have moved to central warehouses. That allowed lower inventory at individual stores to reduce costs. The result has been delays for consumers and an increasingly frustrated customer.

Looking at the model of centralized warehouses distributing personalized orders to consumers, that is what Amazon does. They saw the market, and on Sunday the NY Post reported that Amazon is making a major move into auto parts. It sounds like a perfect fit, but there is a minefield they are entering.

As a frequent visitor to my local auto parts dealers, the biggest issue I have is incorrectly labeled parts. Seeing the companies Amazon has reportedly signed deals with, Dorman, Federal-Mogul, Cardone, have a sketchy at best reputation for packaging parts. With confidence, I can say there is at least a 10% return rate due to incorrectly labeled parts on remanufactured products. If you are looking to Amazon for auto parts, it is for a better price. Remanufactured parts are going to be the lowest priced option.

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I have been a huge Amazon customer for aftermarket parts for many projects. There have been issues in fitment even with those. The return and exchange policies with Amazon are good, but the sheer volume that this could create might be a disaster. The advantage of the local parts store is a return normally can be done in a day or two at most. With an Amazon order, you are looking at a four to six-day turnaround. If your car is dead in your driveway, that is just not going to work.

For me, the biggest concern is what could happen in the short term. If there is a huge market shift to Amazon for retail auto parts, we will see mass closing of retail parts outlets. If the concerns about accuracy come true, we as the consumer could be left out in the cold. We might be left with the discount, low customer service outlets for our parts needs. That is a bleak picture for those of us that still work on our own cars.

I can only hope that the pressure that an entity like Amazon can put on the parts suppliers will improve accuracy. That is the wild card. Will the companies like Cardone be willing to step up their quality control to make sure that Amazon customers stay happy? What will it do to pricing at brick and mortar stores is another question.

We have seen what has happened to the electronics retail market. Circuit City is gone, Radio Shack is almost gone, and Best Buy has shrunk in half over the last decade. The shift from those stores to Costco, Sams Club, and Walmart is what we could get stuck with for auto parts. You thought the counter person at your AutoZone was bad now, imagine asking someone at Walmart for EGR valve for a 1991 Chevy truck. Lets hope that does not happen.

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