Complete the Job for Automotive with Dynamic Bundling 

Complete the Job for Automotive with Dynamic Bundling 

When it comes to auto parts, restoration experts and rookie DIY oil changers alike share a common challenge: how to find the items that will fit their vehicles. Thankfully, as online sales grow, automotive sellers have access to new tools that ease the task of finding the right parts and accessories, so that customers can place orders with confidence and finish the job faster. 

Automotive eCommerce is growing – but shoppers need help

Online demand for manufacturer-produced and aftermarket car parts and accessories is growing exponentially. Forecasts predict annual eCommerce growth of 9% for auto parts sales through 2025, totaling $67 billion by 2030, according to automotive researcher Hedges & Company.  Data from Digital Commerce 360 reveals that among automotive shoppers ages 25 to 55, online transactions accounted for nearly 20% of sales

What’s more, nine in 10 shoppers do online research, even if they head to stores to complete their purchases, according to Hedges & Company – which predicts that digital experiences will influence $200 billion in sales by 2026. 

With such potential for growth, an easy-to-use online presence is a must for automotive brands. 

But automotive parts and accessories dealers face special challenges. To start, the sheer number of makes and models means that there are millions of products in the category. The average age of a car on the road in the U.S. today is 12.5 years, according to the Bureau of Transportation Statistics. Parts and accessories for more than a decades’ worth of makes and models add up to more than 14 million SKUs in the aftermarket category alone, reported. 

Given that one car alone can have 30,000 component parts, according to retailer NAPA, consumers need help navigating choices to find the products and offers relevant to their needs. 

Moreover, the risk of buying counterfeit or substandard parts can be a stumbling block. A third of online auto parts buyers have purchased a fake car part, according to Red Points, and half say they wouldn’t be able to tell whether a component they purchase is genuine or counterfeit.

Dynamic bundling to the rescue

To overcome these concerns and guide consumers toward the right parts and accessories, automotive retailers need more than a comprehensive product catalog; they need digital tools that ease the shopping experience, presenting shoppers with items and content that align with their specific needs. 

Careful curation is a must to ensure that not only are the right parts and accessories displayed, but that interdependent components are grouped together in tandem. That’s where dynamic bundling comes in.

Using dynamic bundles, sellers can group parts and accessories according to make, model and year as well as other criteria they design. Artificial intelligence (AI) can further refine selections by factoring in popularity of products, price points, and local availability. 

These groupings help ensure that shoppers order everything they need to finish the job when it comes to automotive repairs and upgrades. Dynamic bundling’s benefits include: 

Fitment by function

The auto care industry has developed standards to help classify parts and accessories by cars’ year, make, and model. The matching process, called fitment, is the first step in guiding shoppers toward the right items for their vehicles. Dynamic bundling can take the concept further by presenting items related to a specific repair, upgrade, or project. For example, using dynamic bundling in tandem with ACES and PIES data, not only can a merchant display snow tires that match a shopper’s input, but chains in the appropriate size, the right antifreeze for the engine, and covers that fit the windshield.

Tailoring to individual preferences

Not only do shoppers need to locate the right parts for their vehicles, but they expect the offerings to reflect their preferences when it comes to such criteria as style, price point, and brand name. Seven in 10 consumers expect brand interactions to be personalized, and 76% say they’re frustrated when companies don’t deliver, according to McKinsey. Dynamic bundles help merchants meet these expectations for personalized selections, by applying customer profile information to product selections within groupings. For example, a customer’s geographic location can determine whether ski racks are displayed along those snow tires.

Getting granular: making the right match for car parts

Using dynamic bundles, merchants can deliver precisely curated experiences that address needs holistically, beyond matching a search keyword or product finder lookup. Customer profile information that can enrich dynamic bundle recommendations include:

  • DIY, DIFM or B2B – Assigning shoppers according to their expertise and role can help refine selections. While “do it yourself” (DIY) hobbyists might appreciate an all-in-one winterizing kit that includes step-by-step instructions in a manual, “do it for me” (DIFM) buyers may just need the tires for a local mechanic – or savvy friend – to  install. Merchants catering to other businesses, such as local garages or parts retailers, can offer still more sophisticated bundles to ease ordering supplies for routine repairs and upgrades. 
  • Geography – Not only does the terrain and climate vary by location, but preferences for vehicles do, too. For example, McKinsey found that electric vehicle ownership is highly concentrated in a few dozen counties in the U.S., so tailoring the selection of goods and services on offer to reflect local reality is essential. And merchants with physical stores can use geographic data in bundling to display those items available at nearby outlet locations, or kits available for local installation. 
  • Mileage – Requesting that shoppers provide an odometer total adds another potential dimension to product groupings. Merchants can suggest upgrade kits and replacement parts according to regular maintenance best practices. eBay Motors, which generates more than $10 billion annually for the online marketplace juggernaut, recently incorporated AI-powered “predictive maintenance” into its offerings to further personalize its shopping environment. 

Bundle parts and accessories for eCommerce success

Highly-curated experiences have multiple potential business benefits. Helping shoppers locate the right items can boost eCommerce conversion rates, and relevant bundling recommendations can increase average order values by reminding shoppers to order all the components they need to get the job done. Better overall business health can result: companies outgrowing the competition derive 40% more of their revenue from personalization, earning more repeat purchases and achieving higher marketing ROI, according to McKinsey.

Monetate Dynamic Bundles help achieve growth by creating personalized experiences at scale that enable shoppers to match with the right items and content for their repair, upgrade, and outfitting needs. To achieve accuracy and relevance, Monetate’s dyanmic bundles integrate multiple criteria: 

  • Product attributes – Sellers can group items by year, make, and model, as well as SKU details such as color or item size, price range, customer ratings, and more. 
  • Customer data –  On-site behavior, geographic location, and past order history can all factor into the makeup of bundles. 
  • Merchandiser input – Custom product groupings that support marketing and merchandising goals, such as seasonal items or accessories for popular new models can be created and integrated with automated selections.  

Using these inputs, Monetate’s algorithm automatically generates tailored bundle options and improves picks over time as performance data over time helps continually refine experiences. Merchants can use A/B testing to further optimize dynamic bundles, adjusting design and layout to ensure maximum engagement.

With these capabilities, automotive merchants can provide trustworthy guidance through a potentially tricky online buying process – helping shoppers quickly locate relevant items and earning trust along the way. By building a reputation for efficiency and accuracy, sellers can build brand relationships and a strong foundation for loyalty.