In the past few years of cross-border business, as Amazon has become more and more popular, many sellers are asking: Where is the next trend?
Today, let’s talk about a track that has been ignored by many people, but is quietly making a fortune – the Walmart auto parts market.
First, let’s look at the data: How much can Wal-Mart auto parts do?
In 2023, Walmart’s online sales of auto parts will grow by more than 15%.
In an environment where e-commerce growth is generally slowing down, this achievement is quite impressive.
What’s even more exaggerated is that in 2024, there will be a major Black Friday online sale, and the auto parts category will once again become the growth highlight of Walmart.
The market share aspect is more interesting.
In 2023, Walmart’s auto parts market share will be 18% and Amazon’s 13%.
Many people think that Amazon is the dominant player in the field of auto parts. In fact, Wal-Mart is the “hidden champion.”
And most importantly, the number of Walmart auto parts sellers is much smaller than that of Amazon.
There is little competition pressure and low advertising costs, making it easier for new sellers to come out.
In jargon, this is a blue ocean within a blue ocean.
Why does Wal-Mart make auto parts?
The first is the “double-pronged approach” online and offline: in thousands of stores across the United States, consumers view goods offline and place orders online, diverting traffic to each other, and their loyalty is particularly high.
Amazon doesn’t have a physical store, so it can’t do this at all.
Secondly, classic cars are sold everywhere in the United States, and the long-tail demand is ridiculously large: about 30% of cars in the United States are more than 12 years old, and the demand for old car accessories is staggering.
Many sellers look down on brake pads and filters for unpopular models, but with stable demand and zero competition, they can make high profits.
Finally, under inflation, cost-effectiveness is king: American people’s wallets are shrinking, and Chinese sellers have a supply chain advantage.
Brake pads of the same quality are priced at half the price. Walmart users are price-sensitive and especially buy it.
Want to enter?
Make up for the compliance course first.
Walmart requires suppliers to be completely transparent about their factories and have traceable supply chains.
Sounds very strict, right?
But from another perspective, a high threshold is a good thing – it filters out speculators who want to make quick money, and the regular army has less competition and greater opportunities.
Practical strategy: How to get a piece of the pie?
It has a higher market share than Amazon, fewer sellers than Amazon, traffic is still rising, long-tail demand is large, and China’s supply chain has advantages – now is the best time to enter the blue ocean of Walmart auto parts.
Stop staring at Amazon. If you wait two years, there may be another Red Ocean.
The action should be fast and the posture should be handsome.
