Automotive Parts | Digital Commerce 360

A new B2B marketplaces turns on the power for selling used EV batteries

Mark Brohan — Fri, 02 Feb 2024 20:50:53 +0000

B2B marketplace platforms continue to launch in multiple industries. And that includes industry niches as well.

A case in point is Currents, a new niche B2B marketplace for used electric vehicle batteries. Currents is a B2B marketplace designed for buyers and sellers of retired electric vehicle batteries for:

Vehicle equipment original manufacturers (OEMs)
Second life (2L) integrators
Auto recyclers and dismantlers
Lithium recyclers

Currents B2B marketplace

The newly launched marketplace already has attracted some well-known manufacturers including Nissan.

“We’re thrilled to go to market with Nissan’s inventory and provide approved buyers with the best available second-life inventory at the fairest, most transparent pricing based on state-of-health,” says Currents CEO Anthony Garbarino. “Together with Nissan, we can maximize battery lifecycle value and provide second-life buyers with a single, trustworthy destination to solve their demand needs. Our goal is for integrators to spend less time sourcing and more time scaling.”

For now, qualified buyers can purchase Nissan batteries from qualified resellers. The company is based in Portland.

“We’re creating a platform that facilitates and optimizes the end-of-life lithium supply chain to ensure that every battery is managed responsibly while maximizing their lifecycle value,” Garbarino says. “Sustainability, resource and energy independence, and modernizing supply chains are at the forefront of our business model, and we’re excited to launch our platform and drive innovation for stakeholders throughout the value chain.”

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Vroom to end online automotive sales to focus on other business

Brian Warmoth — Tue, 23 Jan 2024 16:50:03 +0000

The online automotive sales company Vroom will close its ecommerce business and focus on other operations, it announced Monday.

In ending its ecommerce business, Vroom intends to cease purchasing vehicles and sell the remaining used vehicles in its inventory using wholesale channels. In addition, it expects to reduce the size of its workforce.

The end of Vroom’s online automotive sales

“Two years ago, we set out to build a well-oiled machine, improve unit economics and dramatically improve our customer experience,” said Thomas Shortt, the chief executive officer at Vroom, in a public statement. “And I believe we achieved those goals. I want to thank our dedicated Vroommates, customers and business partners, as well as our Board of Directors and investors, all of whom have supported us over the years.”

Shortt explained that efforts to raise new capital came up short as Vroom sought to salvage its automotive ecommerce business. Without a path forward, the company will instead shift resources to its other lines of business.

Failed efforts to raise capital

“As we previously disclosed, we intended to raise additional capital to fund our operations and support the extension of our vehicle floorplan facility beyond its current expiration date of March 31, 2024,” Shortt said. “Despite significant efforts to do so, we ultimately were unable to raise the necessary capital in the current market. Obviously, we are very disappointed with this outcome.”

Vroom’s remaining business operations include the automotive financing company United Auto Credit Corporation (UACC) and retail-focused digital services provider CarStory. Both will continue to operate as Vroom’s online automotive sales end.

“Although we were unable to raise the capital necessary to achieve profitability in our ecommerce operations, we are committed to responsibly managing our remaining businesses and prudently deploying our capital as we seek to maximize value for all of our stakeholders,” said Robert Mylod, independent executive chair of Vroom’s board.

Vroom’s history

Vroom, along with other automotive ecommerce upstarts such as Carvana and Shift, focused on the used-vehicle market during the COVID-19 pandemic conditions of 2020. In 2023, online car sales were poised to grow as a share of overall auto sales in the U.S. However, new car sales appeared to be growing, while used car sales were projected to be down, according to data from Industry Data and Insights for Cars Commerce.

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FordDirect rolls out a new dealership ecommerce platform

Mark Brohan — Wed, 17 Jan 2024 16:38:38 +0000

FordDirect, a joint venture the vehicle maker has with its dealers for marketing and technology initiatives, is rolling out a new ecommerce system.

Called The Shops, the ecommerce platform will provide Ford and Lincoln dealers and resellers with tools and features that enable them to link to pre-approved service vendors. Vendors can then help with tasks such as customer lead generation, warranty authorization and credit pre-approval, among others.

Specific vendors on FordDirect’s ecommerce platform include:

Better Car People, a comprehensive business development platform.
ComplyAuto, a dealership compliance software platform for privacy, security, safety/human resources, and finance and insurance.
OfferLogix, a credit pre-qualification service.
Velocity Automotive, reconditioning management software.
Volie, automotive call center software.
WarrCloud, a warranty processing technology platform.
Work Truck Solutions, commercial truck and van digital marketing and inventory merchandising tools.

The Shops addresses dealership needs

Dealerships face an increasing demand for day-to-day resources, including meeting customer expectations, complying with regulations, managing employees, updating technology, and planning sales events, FordDirect says.

“As every facet of the auto industry transforms through technology, dealers tell us they are more challenged than ever to stay current while meeting their business goals,” says FordDirect CEO Dean Stoneley. “The Shops is now open to help Ford dealers and Lincoln retailers find the best vendors in the market for all of their needs.”

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A B2B marketplace for automotive parts drives forward

Mark Brohan — Wed, 20 Dec 2023 20:12:15 +0000

Driven Brands is changing lanes and racing along for more ecommerce connectivity.

The automotive aftermarket franchise company generates about $2.9 billion in annual revenue. It has launched Driven Advantage, a B2B marketplace. It will connect the company’s more than 5,00 automotive corporate locations, shop owners, franchises, and affiliates with more than 80,000 products from third-party suppliers.

Driven Brands owns and operates brands such as:

CARSTAR
Meineke Car Care Centers
MAACO Collision Repair and Auto Painting
1-800 Radiator
Take 5 Oil Change

Driven Advantage B2B marketplace

Key details about how soon the marketplace will become fully operational, the names of key suppliers and the full suite of features and functions buyers can use the procure automotive parts and related items, have yet to be made public.

But the B2B marketplace was build in conjunction with marketplace services company Mirakl.

“The average automotive service center with $1 million in annual revenue can expect to save upwards of $50,000 per year by ordering via Driven Advantage,” says Driven Brands. “The marketplace offers buyers an enhanced personalization experience, making it easy for buyers to discover the products that meet their specific needs.”

Driven Brands operates a wide variety of automotive service centers for consumer and commercial automotive services. They include:

Paint
Collision
Glass
Vehicle repair
Oil change
Maintenance
Car wash

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Digital manufacturer Protolabs scores record quarterly sales

Paul Demery — Thu, 09 Nov 2023 15:00:50 +0000

Proto Labs Inc. reached new milestones in the third quarter, increasing revenue to a record $23 million in its Hubs digital manufacturing network business, as Protolabs total revenue grew 7.1% to an all-time high $130.7 million, president and CEO Robert Bodor said.

The company’s financial gains reversed recent quarterly declines, as Bodor noted that Protolabs did well in Q3 despite continued softness in manufacturing markets.

Recently, a luxury high-end automotive manufacturer selected Protolabs to assist with its first foray into the electric vehicle market.

Robert Bodor, president and CEO

Proto Labs Inc.

Robert Bodor, president and CEO, Proto Labs Inc.

“We continue to accelerate innovation for customers with the fastest and most reliable lead times in the industry,” Bodor said on a Q3 earnings call. “The broader economic environment is still uncertain. Manufacturing conditions in the U.S. and Europe remain soft and have not consistently improved throughout 2023.”

Protolabs revenue in Q3

Despite that economic downturn, Protolabs “grew in the quarter, especially in our digital manufacturing network business,” he said.

Bodor added that Protolabs is gaining market share with larger companies and expanding in new markets.

“Recently, a luxury high-end automotive manufacturer selected Protolabs to assist with its first foray into the electric vehicle market,” he said, without naming the manufacturer.

Bodor added that Protolabs worked with vehicle manufacturer’s design firm, Hutchinson, to make prototypes for and electric vehicle battery pack cooling system.

“We rapidly manufactured injection molded parts, which meant stringent project timelines and quality utilizing our speed, reliability and quality,” he said.

Bodor noted that Protolabs’ traditional business over most of its 24-year history has been in manufacturing prototypes of parts that customers use in designing and testing new products. But it is now seeing growing demand for parts that customers use in the production of final products.

Protolabs “is becoming a one-stop shop for custom prototypes and low-volume production,” he said.

Protolabs’ services include:

Injection molding
3D printing
Sheet metal
CNC machining

CNC machining is a manufacturing process in which pre-programmed applications dictate the movement of factory tools and machinery. The process enables three-dimensional cutting tasks to be accomplished in a single set of prompts.

Protolabs reported for the third quarter ended June 30:

23,800 product developers served by its digital manufacturing.
Gross profit of $59.28 million, for a gross margin of 45.4%. That’s up from $53.6 million and 44% a year earlier.
$19.5 million in earnings before interest, tax, depreciation and amortization (EBITDA) or 14.9% of revenue. That’s up from $11.4 million and 9.3%.
Net income of $7.95 million, up from $3.95 million.

For the nine months ended June 30:

Revenue of $166.18 million, nearly unchanged from $166.85 million a year earlier.
Net income of $10.32 million, down from $11.60 million.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s Protolabs update.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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Europe ecommerce sales and growth by category

Farnia Ghavami — Fri, 14 Jul 2023 18:31:57 +0000

The European ecommerce landscape Each year, the Digital Commerce 360 research team analyzes and ranks the leading ecommerce companies headquartered in Europe in our Europe Database. These leading 500 European companies include some of the world’s most iconic brands such as LVMH, which owns: Louis Vuitton Tiffany & Co. Dior Fendi Tag Heuer Bulgari Givenchi […]

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A tire distributor rolls with more B2B and B2C online orders

Paul Demery — Wed, 05 Jul 2023 20:55:14 +0000

Selling tires is becoming more challenging with the increasing number of private labels and tire sizes and greater demand from B2B and B2C buyers for an omnichannel buying experience.

So as a prominent tire supplier to Canada’s automobile manufacturers, dealers, and independent tire retailers, Montreal-based distributor Groupe Touchette Inc. has relaunched its ecommerce platform to meet the demands of multiple B2B channels and individual consumers.

We are seeing our customer loyalty, competitive advantage, and market share all increasing.

Denis Gallagher, vice president of IT

Groupe Touchette Inc.

Denis Gallagher, vice president of IT, Groupe Touchette Inc.

The company’s new ecommerce platform, running on SAP Commerce technology from SAP SE, hosts several transactional commerce sites, including TireLink.ca for sales to motor vehicle manufacturers and their dealers; DTTire.ca for independent tire dealers and installers; and Tireland.ca, where consumers can purchase tires and arrange for professional installation.

Groupe Touchette says 94% of customer orders are now placed through the ecommerce site, up from less than 80% on its prior site.

Operating online with more agility

“The tire distribution industry has seen significant shifts in recent years, including the emergence of private label tires, and advanced use of data, analytics and technology logistics,” says Denis Gallagher, vice president of IT. “Since the establishment of the new omnichannel B2B platform, we have been able to respond to these demands with more agility.”

As a result, he adds, “we are seeing our customer loyalty, competitive advantage, and market share all increasing, coupled with a reduction in calls and costs to our call centers.”

Groupe Touchette also operates more than 50 distribution centers throughout Canada, putting it “in a position to offer delivery services in 90 of the 100 largest cities in the country in less than three hours,” Gallagher says.

The distributor’s overall sales and fulfillment operations, however, require reliable connections to exchange customer and product data between its ecommerce platform and backend business operations software.

Integrating ecommerce with ERP

Groupe Touchette worked with Toronto-based systems integrator Pivotree to deploy SAP Commerce and integrate it with the distributor’s SAP S/4HANA enterprise resource planning software, providing for accurate online presentation of such content as customer contract pricing, order details and status, customer activity data, and promotions.

Among other improvements, the ecommerce platform also features enhanced site search and navigation, resulting in more repeat customers and fewer calls to customer service, Gallagher says.

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29 takeaways from ranking the largest online retailers by category

Farnia Ghavami — Thu, 15 Jun 2023 16:41:33 +0000

U.S. ecommerce sales grew 7.7% in 2022, but the Top 1000 online retailers only grew 5.1% — a big change from the double-digit growth they have seen in previous years. This month’s analysis consists of looking at the Top 5 leaders in each Top 1000 category and by merchant type, getting a sneak peek of […]

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Earnings recap: What you missed from Best Buy, Macy’s and more

Mary Meisenzahl — Fri, 02 Jun 2023 16:11:26 +0000

More businesses in Digital Commerce 360’s Top 1000 list of ecommerce retailers in North America reported earnings over the last week. These are the highlights you need to know. Read more earnings coverage here.

23andMe Inc. (No. 309)

Revenue was down 8% year over year for the fiscal fourth quarter, but it grew 10% to $272 million for the full fiscal year ended March 31, 2023. The biotechnology company grew its customer base 11% in the fiscal year to 14 million genotype users.

It also grew its subscription membership, 23andMe+, CEO Anne Wojcicki told investors. Subscription membership grew 51% year over year to 640,000 members. More customers are also opting in to the subscriber program with their initial purchase, though she did not give a specific figure.

Advance Auto Parts Inc. (No. 101)

Advance Auto Parts reported a “double-digit sales increase” in ecommerce for its first quarter. Over the same period, net sales grew 1.3% year over year and comparable store sales decreased 0.4%. The auto parts retailer also reported that DIY omnichannel sales grew, without sharing specifics.

Bark (No. 173)

Revenue was down 2% year over year in the fiscal fourth quarter to $126 million, coming out ahead of Bark’s guidance. Direct-to-consumer revenue also decreased 1.5% to $116 million. For the full fiscal year, direct-to-consumer revenue increased 5.3% over fiscal 2022.

Bark broke down DTC revenue by product category. Toys, beds, and apparel generated $307 million in revenue in fiscal 2023. Consumables including treats and food generated $165 million.

Best Buy Co. Inc. (No. 7)

Domestic online revenue declined 12.1% for the first quarter to $2.69 billion, Best Buy said. Online sales made up 30.5% of total domestic revenue in the quarter, down slightly from 30.9% last year. About 40% of those sales were buy online, pick up in store (BOPIS) orders, the retailer said.

Online sales have doubled since 2020, CEO Corie Barry told investors.

Big Lots (No. 251)

Net sales were down 18.3% year over year to $1.1 billion the first quarter, Big Lots reported.

“Our lower-income consumer was hurt by inflation, lower tax refunds, and higher interest rates, and their confidence has been shaken by banking failures,” CEO Bruce Thorn said in a statement.

The discount retailer declined to share specific ecommerce data.

“We continue to improve the [online] customer journey through a more curated experience, better site navigation, and eliminating friction,” Thorn told investors.

Deckers Brands (No. 167)

Direct-to-consumer net sales grew 19.5% in the fiscal fourth quarter to $343.1 million, up from $287.2 million the previous year. Much of the growth came from a few specific brands. Sneaker company Hoka net sales, including in stores and ecommerce, grew 40.3% year over year to $397.7 million. Teva sales also grew 14.6%, while Ugg sales were down 16.1%.

“Fiscal year 2023 was an exceptional year for the Deckers organization, delivering 15% revenue growth and increasing earnings per share nearly 20%,” CEO Dave Powers said in a statement. “We continue to deliver record results, including the HOKA brand adding more than half a billion dollars of top-line revenue.

Lululemon Athletica Inc. (No. 27)

Lululemon reported ecommerce sales grew 18% in Q1 over the year-ago period. Online sales contributed $835 million in revenue in the quarter, 42% of total revenue, the retailer said.

Traffic grew 30% year over year both in stores and online, chief financial officer Meghan Frank told investors.

Macy’s Inc. (No. 17)

Online sales were down 8% year over year in the first quarter. Ecommerce sales made up 33% of total sales in the quarter, CEO Jeff Gennette told investors. Digital penetration remained flat from 2022, down from a high of 40% during the pandemic.

Nordstrom Inc. (No. 21)

Ecommerce sales were down 17.4% in Q1 due to eliminating digital order fulfillment at Nordstrom Rack stores and closing the Trunk Club in 2022, the retailer said.

Nordstrom reported that digital sales made up 36% of net sales in the quarter, down from 39% of net sales in the year-ago period. Digital sales were approximately $1.1 billion in the quarter.

Sportsman’s Warehouse (No. 361)

Net sales decreased 13.5% year over year to $267.6 million in the quarter. Sportsman’s Warehouse didn’t provide specific information on ecommerce sales. CEO Jeff White told investors that online sales are a “continually growing highlight” of the business even as overall sales were down.

Ulta Beauty (No. 48)

Ulta comparable sales were up 9.3% year over year in the first fiscal quarter. The beauty retailer didn’t specify what percentage of sales were through ecommerce.

Ulta also finished the two-year rollout of its updated website and app in the quarter.

Victoria’s Secret & Co. (No. 53)

Net sales decreased 5% year over year $1.4 billion in the fiscal second quarter, Victoria’s Secret reported. Web traffic for the apparel retailer remained flat from 2022, though conversion rates and average unit retail both declined over the period.

Casual sleep and beauty were the best performing categories both online and in stores, CEO Martin Waters told investors. Sales in China showed “outsized growth in digital,” he said.

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How a manufacturer planned a B2B ecommerce site project

Peter Lucas — Thu, 16 Feb 2023 18:38:00 +0000

The thought process behind developing a B2B ecommerce can be complex, time-consuming, and challenging.

Enzo Rabante, head of global digital solutions, Dayco

Just ask Enzo Rabante, head of global digital solutions for Dayco, an engine parts manufacturer for automotive, truck, construction, agriculture and industrial vehicles and equipment. Dayco sells primarily to small and mid-size distributors in a hurry to find what they need, so it decided to develop the “Dayco digital garage” as a B2B ecommerce site at DaycoAftermarket.com that its customers would find helpful for purchasing such Dayco products as engine belts, front-end drive system components, hoses and tools.

“Our customers expect a personalized journey that generates value at each touchpoint,” he says.

The starting point for designing and building the Dayco digital garage was getting a deep understanding of buyer expectations. Those expectations lay the foundation for delivering a customer experience that triggers initial sales, as well as repeat sales, and generates customer loyalty, Rabante says.

To Dayco, the reason for making the buyer experience central to its plans for developing the new ecommerce site was simple: If buyers consider the digital experience inferior to the in-store experience, odds are they won’t come back to digital.

Getting multiple departments involved

The internal digital team, and any third-party digital consulting firms brought in on the project, play a critical role in developing the blueprint for an ecommerce site, Rabante says. But he asserts that one department that also needs to be involved is marketing, because it delivers a brand’s message to the target audience to develop leads and post-sale follow-up and service opportunities.

“Marketing is important to the digital experience, pre-sale and post-sale,” says Rabante, who spoke about the Dayco digital garage at the Sitecore Symposium last fall. “Buyers expect a journey that generates value at each touchpoint and enhances the brand in every [line of] business, without barriers.”

Dayco’s primary customers are small and medium distributors who expect to find what they want quickly on the site and not feel their time spent online is being wasted. “That’s why marketing and customer profiling need to be clean and push promotions and products that are relevant to the customer,” Rabante says. “Our customers expect a personalized journey that generates value at each touchpoint, enhancing the brand in every business, without barriers.”

Web content for end customers

While Dayco determined that it needed to build buyer experiences unique to its target audience of distributors, the manufacturer also realized its content needed to address the needs of the end-users of its products, mechanics and do-it-yourselfers. That way it would reassure its distributors that they were purchasing the right product mix for their customers. “We sell to the distributors, who sell to the garages [and parts retailers], who make the products available to the mechanics or do-it-yourselfers,” Rabante says.

This strategy also means providing easy online access to the product catalog, product pages and related documents. “Our mission is to turn buyers into loyal customers by providing the pre- and post-sale digital services buyers expect,” he adds.

Dayco’s largest markets are in Europe, the Middle East and Africa, or EMEA, which generates 48% of its revenue, and North America, which generates 35%. Asia-Pacific and South America account for 9% and 8% of revenue, respectively. In its fiscal year 2020, which ended February 2020, Dayco posted revenue of $1 billion, the latest figures the privately held company was willing to share. The manufacturer has 18 manufacturing sites, 16 distribution centers and six technical centers.

Setting key performance indicators

Having settled on the parameters of the what the customer experience should be, Dayco laid down a set of key performance indicators for the new site. Those KPIs include increasing the conversion rate for marketing campaigns, measuring how well push promotions perform and customer loyalty.

When it came to selecting the digital experience platform to power its new site, Dayco chose Sitecore because it offers a fully integrated platform, a headless ecommerce solution, and takes an API- first approach, Rabante says. Dayco also liked that the Sitecore platform was cloud-based and the knowledge the Sitecore team brought to the development process. To build its new B2B ecommerce site, Dayco is using the Sitecore OrderCloud headless commerce platform integrated with the Sitecore Experience Manager content management application and Sitecore Send email management system.

“An API-first approach is very important to us as it makes changing the front-end very easy,” Rabante says. As an API-first, headless design, the Sitecore platform was built with application programming interfaces to integrate the independent customer-facing front end interface with the ecommerce engine.

Integrating Microsoft technology

He says Dayco also brought in digital agency Cluster Reply to consult on the project, largely because of its expertise for integration of Microsoft applications, including Azure, Microsoft’s cloud computing platform for application management.

With its digital team still putting the final touches on its planned digital garage, Rabante expects the new website will provide a valuable experience for buyers that helps win sales from competing sites.

In summarizing Dayco’s approach to building its digital garage, Rabante quotes Bruno Vallilo, Dayco’s president of global aftermarkets: “We change the way we think, keeping customers at the center of our digital transformation.”

Peter Lucas is a Highland Park, Illinois-based freelance journalist covering business and technology.

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