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EBay And Amazon Dominate The DIY Auto Retail Market

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EBay And Amazon Dominate The DIY Auto Retail Market

Amazon.com, Inc. (NASDAQ: AMZN) and eBay Inc (NASDAQ: EBAY) are dominating the world of online auto sales.

DIY Auto Retail

In a new report on do-it-yourself (DIY) auto retail, Wedbush analyst Seth Basham discusses the secular headwind that Amazon and eBay have created for the “Big 4” traditional auto parts retailers, Advance Auto Parts, Inc. (NYSE: AAP), Autozone, Inc. (NYSE: AZO), Genuine Parts Company (NYSE: GPC) and O’Reilly Automotive Inc (NASDAQ: ORLY).

According to Basham, the online DIY auto industry will continue to take roughly 0.75 percent market share annually for at least the next five years.

The New Big 4

EBay currently owns the biggest piece of the online pie with a 40 percent market share, while Amazon holds a 25 percent share. The “Big 4” hold a combined 20 percent share of the online market.

“With no major inflection, we see this as a manageable headwind for the Big 4 auto parts retailers (AAP, AZO, GPC, ORLY) that continue to take share from weaker competitors, particularly in the larger and more fragmented DIFM segment,” Basham explained.

Wedbush estimates that the online aftermarket for vehicle parts and accessories is roughly a $10 billion–11 billion market.

Wedbush maintains Outperform ratings on Advance, O’Reilly and AutoZone. The firm has a Neutral rating on Genuine Parts.

At Last Check

  • Advance Auto Parts closed Friday at $175.58.
  • Amazon shares were down 0.22 percent in Monday's pre-market session at $766.95.
  • AutoZone was flat in Monday's pre-market at $803.10.
  • EBay shares were up 0.17 percent in Monday's pre-market trading at $30.02.
  • Genuine Parts closed Friday's trading at $98.63.
  • O'Reilly shares closed Friday at $275.96.

Latest Ratings for AMZN

DateFirmActionFromTo
Apr 2021Credit SuisseMaintainsOutperform
Apr 2021Evercore ISI GroupAssumesOutperform
Feb 2021CitigroupMaintainsBuy

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