From 0 to 100: Trading in vehicle parts and accessories
Do you sell vehicle parts and accessories on eBay, or are you thinking about getting started in this area? Then this podcast episode is just right for you!
In this episode, Michael Sievritts, Senior Manager Partnerships at eBay, and Martin Menzel, Senior Inventory & Account Manager at eBay, explain why trading vehicle parts differs so much from other categories and what tips our experts have ready for optimizing these listings.
We also hear from Artur Oswald, founder and managing director of Retromotion, about the challenges he faced in the early days and how you can prepare for them.
We hope you enjoy listening and wish you much success selling!
Note to our listeners: If you still have questions for the Motors team after this episode, or are interested in taking part in one of our eBay programs, you can get in touch at the following email address: autoteile@ebay.de.
**Important links**
- More information about our third-party providers
- Optimize the listing of vehicle parts and accessories on eBay
- Vehicle application lists for download (Excel password: Fahrzeugliste)
- Tips for creating listings with vehicle application lists
- More information about the eBay vehicle parts promise
- eBay shop by Retromotion.com
**Mentioned podcast episodes**
** Chapter markers **
- 00:02:03 to 00:04:25: Why is eBay so popular as a marketplace in the vehicle parts and accessories segment, and what kind of buyers shop there?
- 00:04:25 to 00:06:26: In what ways does trading vehicle parts and accessories differ greatly from other areas?
- 00:06:26 to 00:08:51: What special considerations must also be taken into account when trading motorcycle parts and accessories?
- 00:08:51 to 00:18:31: Interview with Artur Oswald from Retromotion.
- 00:18:31 to 00:19:42: How do I use TecDoc for my listings?
- 00:19:42 to 00:27:48: Tips for sellers who want to get started in this area.
- 00:27:48 to 00:31:45: How does the eBay vehicle parts promise work?
- 00:31:45 to 00:34:06: A look into the future.
Isabell: The car won’t start? Need to get the motorcycle ready for the next season? On eBay, everyone can quickly and easily find the right vehicle parts, and if you’re listening now, you probably sell these products yourself, or you’re interested in how you can get off to a successful start on our marketplace. Either way, it’s worth sticking with it. Today we’re talking about why trading vehicle parts differs from other categories, how selling motorcycle and car replacement parts differs, and what tips our experts have ready for you. Enjoy listening!
Michael: It’s important for me to think about the market situation. So of course I need to look at, if I’m offering products that are already sold via eBay, whether I hit certain prices or price points, or whether I stand out through especially fast deliveries, or whether I manage to occupy niches, i.e. product segments that are not yet so well represented with us.
Isabell: Hello and welcome to "Alles top. Gerne wieder!" The eBay podcast about trade and e-commerce. I’m Isabell Butterwegge, and today we’re talking about vehicle parts and accessories. And because this topic is completely new territory for me, I’ve brought two experts into the studio who also have a great personal passion for cars and motorcycles, Michael Sievritts and Martin Menzel. Michael is Senior Manager Partnerships at eBay and is responsible for cooperation with manufacturers and brands and for original and used parts. And when Martin isn’t on the racetrack, he optimizes the product range from the motorcycle world at eBay as Senior Inventory and Account Manager and keeps an eye on current industry trends. Hi and welcome, Michael and Martin!
Martin: Hello.
Michael: Hello!
Isabell: By the way, it’s worth sticking around! Not just because of these two experts here. Later on we’ll also hear from a successful seller about the tips he has for you. So stay tuned! But first, let’s dive straight into the interview. Michael, in the vehicle parts and accessories area, we are very popular as a marketplace with both sellers and buyers. That makes me wonder: how was eBay able to position itself so well in this market?
Michael: For eBay, car parts and accessories were an important topic from the very beginning, and we introduced innovative technologies early on that make it easier for customers to find a suitable part for their specific vehicle. I think we’ll come back to this topic later in the podcast. Customers also have the option of using "My Garage." So, in a way, it’s a tool where I can virtually park my vehicle and then find the right part more quickly in future searches. We also stand out because we have a huge range, an incredible breadth, including item condition. Customers can find both new items and refurbished or used parts with us. We offer parts from OEMs, i.e. original manufacturers, top brands, our own brands, but also no-name brands or brands from China. And not just individual components, but complete sets too, such as brake sets, for example, or inspection packages, which naturally makes it easier for the customer to order exactly what I’m looking for for my planned installation service.
Isabell: So, an enormous range of products can be found on eBay. To sell these successfully, sellers probably first need to understand their target group. You’ve just mentioned many different product categories, or product conditions as well. Who actually buys in these areas on eBay?
Michael: Yes, that’s a good question. We have a very broad range of different customer segments. Basically, we distinguish between the customer who installs the parts themselves, the so-called do-it-yourself customer, or the do-it-for-me customer, who buys the parts but then takes them to a friend or a workshop to have them installed there. And among the do-it-yourself customers, we also distinguish between the standard customer or beginner, people like me for example, who might manage to change the windshield wiper themselves, or the pro, i.e. a professional gearhead, or the workshop itself, which handles the whole thing professionally.
Isabell: So, a super broad spectrum both on the product side and on the customer side. Martin, in our pre-talk we also realized that trading in car and motorcycle parts differs a bit from trading in other categories. What is so special about this area?
Martin: Yes, we have to imagine that cars and motorcycles have been around for more than 100 years. New models come onto the market every year, and each of these models requires not only replacement parts, such as brakes or shock absorbers, but also products that the owner wants to buy individually for their vehicle. This results in an incredibly wide variety of replacement parts available on the market. We’re talking here in some cases about sellers offering up to 500,000 individual products. The challenge here is that there isn’t always structured data available for these products on the market, as we’d like from our sellers at eBay. We’re talking, for example, about images, but also technical data such as installation position or size data, weight data, or fitment, i.e. exactly which vehicle a part is available for. This of course offers enormous potential, but also a hefty amount of work that is needed here to compete in the market.
Isabell: So in this category, is it the case that most sellers are represented on eBay with a large catalog?
Martin: Well, that doesn’t have to be the case, but I think if you’re getting started here or want to be successful in sales, then you have to ask yourself: what do I want, what is the goal, what should be achieved? Do I want to offer the broadest possible variety as a provider? Then yes, then I need this variety of products, but I also have to face very, very broad competition and think about sourcing routes, shipping routes, and how I can scale the whole thing and map it technically. Or I say, I don’t want all that. But I’m an expert in a very specific area, maybe for product groups like brakes or for specific vehicle models in the classic car area, maybe a VW Beetle, or an old motorcycle, and I want to offer everything for exactly this model. Then other needs arise from that.
Isabell: Yes, you also have to be our expert for trading motorcycle replacement parts. We already know you from the episode we recorded last year with parts seller Niklas Priddat from Global Motor Parts. For anyone who wants to listen again, we’ll also put the link in the show notes again. But I’d now be interested to know whether there is also a difference between selling motorcycle replacement parts and car parts on eBay.
Martin: Fundamentally there are certainly many similarities between the two areas, because whether a car needs new brake pads or a motorcycle does is basically the same. However, there are differences, for example in the users. A car is usually used for everyday needs; it has to work and should be reliable every day. Motorcycles are often hobby-oriented vehicles that are cared for and maintained by enthusiasts. That means these customers research more deeply when needed, have certain brand preferences, love their vehicle, want to show it off, and we also have significantly more optimization potential here than, for example, in the car sector. There are people for whom their biggest hobby is completely rebuilding their motorcycle. You can’t even tell what it used to be anymore. And on top of that, we have another special feature, namely that in addition to the motorcycle, the rider also has to be considered. So we also include the clothing area, which brings completely different challenges, for example sizes, designs, or fit, which are relatively difficult to represent digitally.
Isabell: Ah, okay, yes, our fashion colleagues would probably agree. We also talked about that in the pre-talk. You just mentioned that data quality in the car and motorcycle parts area in general is a major challenge because it’s often not that good. Our partner TecDoc offers an exception here, you could say. Can you still explain what TecDoc is and what it’s about?
Michael: Yes, TecDoc is, if you will, the industry standard for us. So it’s the big catalog of car parts, which parts manufacturers also supply with data, and TecDoc also indicates, for example, which vehicle models a specific part fits. And this information is of course incredibly important for sellers to provide too. Because, as I said at the beginning, the customer is looking for parts that fit their vehicle, and if I as a seller don’t provide this information, then my listing obviously won’t be found either.
Isabell: We know that many of you find tips from other sellers helpful who have already successfully scaled their business, and that’s exactly why I contacted Artur Oswald to get a few tips from him. Artur is the founder and managing director of Retromotion, which specializes in selling replacement parts for cars, and I talked to him briefly about his experiences in e-commerce. Arthur, every beginning is hard. You certainly know that if you look back on the early days of your business. What are the biggest mistakes you would want to protect our listeners from?
Artur: Yes, dear Isabell, first of all many thanks. Yes, there were some mistakes that we made at the beginning and certainly still make today, and I think the most important thing is first of all to have the right mindset so that mistakes don’t discourage you. When we talk about the early days, we had the opportunity back then to access a very large assortment. We had access to around 50,000 SKUs that we prepared for sales across various online channels. Among others, of course also eBay as the most attractive channel, and that’s where the crux of the whole thing already lay. With 50,000 SKUs, you’d have to look at attributes 50,000 times, look at descriptions, look at images, and that was then more of a hindrance than a help for getting started on eBay. Back then we also set the wrong focus, looking more at tooling. Which tools can actually be used to upload all these many SKUs? Etcetera. A lot of time was wasted on that. In retrospect, the recommendation here is definitely to start very small, to approach a marketplace like eBay. Start with one product and look at what data, settings, and tooling are needed for this one product, then take those learnings for maybe the second item, the third item, and from there scale up. So definitely don’t start with 50,000 SKUs, but rather with exactly one SKU and learn from that.
Isabell: Did you start directly with eBay, or did you first start with your own webshop back then?
Artur: We started in parallel. We actually had the idea from the very beginning of having our own shop and creating a connection from the shop to eBay, and none of that was helpful. Um, that was just a complete overload on our part, and the first attempts were really discouraging because, despite the high number of SKUs, no relevant sales were generated, and then we had to backtrack accordingly and really start small first. But it took us a while to understand that as well. #00:12:17-2# Isabell: Okay, so don’t make the mistake of starting too big right away. As an experienced managing director, you probably still have a whole lot of other tips you could share with us. What would your top 3 tips be that our listeners should take to heart? #00:12:34-4# Artur: Exactly, so besides assortment selection, but also in connection with that, definitely market observation. Because market observation lets you draw conclusions. So which SKUs do I go in with? Identifying where potential market gaps are, where the market is still inefficient, for example in terms of availability, price, delivery speed, and we also didn’t have that on our radar at first. Accordingly, we only had to gain that experience until we then also consistently expanded our assortment while continuously monitoring the market. And last but not least: Don’t be impatient, I notice that often. Fortunately, we stuck with it and developed the ambition to somehow make these SKUs successful. That means a lot of trial and error, trying things out until the listing you create is right for the end customer and then actually sells.
Isabell: How do you do market analysis? Have you discovered any tool or functionality that helps you stay on top of it?
Artur: We actually use a tool from eBay, namely Terapeak. We look there, go into the analysis, enter the EAN code or item number, and do product research, look at the competition, look at what market potential lies behind it, and what the sales figures are. That’s exactly something that makes eBay unique, that such tools are made available to sellers, and I think in the end that also serves the end customer who shops through it. .
Isabell: Okay, so to begin with, bring a manageable assortment selection to market, then get a feel for the market, maybe use tools to help you, and above all show perseverance. That’s how I’d summarize your three tips now. There are certainly still some of our listeners who may already have taken their first steps in the area of car and motorcycle replacement parts and may already be successful, but who would like to take the next step now to increase their revenue even further. Do you maybe have one final piece of advice on how that could be achieved?
Artur: So, on the one hand, it’s more of a permanent task, and that permanence has to be shown in listing quality, namely making sure that all data fields are filled out carefully, that the images are correct, so that the conversion rate can happen. The better the data, the fewer returns you have in the end, which lowers your own costs. We want to make the details as precise as possible, and also filling in every field that’s offered actually has the advantage that your products are easier to find. Customers search in different ways: one through free-text search, the next through the filter settings, and those in turn access different data foundations, and the more completely everything is maintained, the more successful the customer’s search for the right replacement part will be. Exactly, the last tip is something you also have to deal with permanently: logistics. Customer expectations regarding logistics and delivery are very high. Yes, people basically expect delivery the next day, and if you do get bad reviews, it’s often in connection with non-delivery, and not because they were dissatisfied with the product quality in any way. And yes, that’s why I can’t stress the importance of logistics enough. There too, it’s a matter of continuously gaining speed through process optimization, more manpower, and further digitization in order to, yes, simply meet end customers’ expectations here, and that’s why this is definitely a topic that constantly accompanies us as well.
Isabell: A very nice final tip. In fact, we recently recorded a small podcast mini-series on the topic of "let’s talk about shipping," where we also went into this in detail and discussed valuable tips with our logistics experts, not just in the vehicle parts area. It’s generally a super important topic across all categories. So it’s great that you brought that up here as well. Thank you Artur for taking the time to summarize your tips for our listeners.
Martin: Thank you, Isabell.
Isabell: Before we switch back to Michael and Martin in the studio, here’s a quick note from us. We’re always very happy when you send us feedback on our podcast episodes. You can do that either in the eBay Community or on our Facebook page eBay for Business Deutschland. So please feel free to write to us whether you already trade in car and motorcycle replacement parts or maybe are thinking about getting started. Got more tips for the community? Bring them on! We’d also be happy if you leave us a subscription or a like wherever you’re listening to us right now. Artur just said in the clip that he basically had the same problem. He had too many products way too quickly and basically couldn’t keep up with the data. So how can sellers use TecDoc for themselves now?
Michael: Yes, that really depends on the size of my inventory. So if I start, as Artur recommended, with a small assortment, then we offer the option of automatically pulling in the TecDoc data in the sales form using the part number. All that’s required is that I take out a license from TecDoc once, which is relatively inexpensive, and once I have this license and this function is activated, I can automatically transfer the so-called vehicle application data, i.e. the lists of suitable vehicles, into the listing based on the manufacturer number and then list the item. Yes!
Isabell: Is that the market standard, that you actually have this license?
Michael: Yes, you do need the license. TecDoc lives off that; their business model is, so to speak, to aggregate and provide all the data in this form and to offer this market standard, and that’s why it’s required. But it’s a low-cost license that is needed here. And as I said, when it comes to a larger inventory that I can no longer handle manually, i.e. where I need automated processes, there is the option of working with third-party providers, whom we also publish on our pages, to help me transfer this data on a large scale.
Isabell: Ah, very good, then let’s also stick directly to concrete recommendations for action. Michael, what tips would you give to aspiring sellers who are just starting their business in this area?
Michael: Yes, we heard that from Artur too. I think it’s very important at the beginning to first think about what my core competence actually is. So am I the expert for a specific topic? For certain product segments like classic cars or motorcycles, do I have a high level of expertise in that area and a large product range, so to speak? Or do I want to target a broad assortment, where the focus is more on automating processes and keeping processes under control. I need to clarify that at the start.
Isabell: So, basically first become clear about which direction I actually want to go in? So how do I want my strategy to look, where are my core competencies, and then think about how I can get there? So do I need technical support? With a third-party provider, do I need to secure myself with a vehicle application list via TecDoc, so to speak.
Michael: Correct. Isabell: What else do you think is important if I want to buy successfully in this area?
Michael: It’s important, as Artur already mentioned, for me to think about the market situation. So I have to look, if I’m offering products that are already sold via eBay, whether I’m hitting certain prices or price points, or whether I stand out through especially fast deliveries, or whether I manage to occupy niches, i.e. product segments that are not yet so well represented with us, which of course is difficult because we already have a broad assortment. But for example, bundling packages is always really exciting, meaning I really think about which inspections the customer needs, which parts, and then bundle them into a package. That naturally gives me less price transparency and also gives me opportunities to actually gain margins here. Yes!
Isabell: What exactly do you mean by sets?
Michael: Yes, sets are basically bundles or product assortments in one listing that I need for a specific case. I always like to use the example of brake sets. So that doesn’t just include the brakes... discs, brake discs, but also the brake pads, the necessary screws or, in the case of an inspection package, all the necessary filters I need for it, the oil, the drain plugs, so everything I need for that one inspection is then included in one offer.
Isabell: Of course that’s super practical for buyers when I can get everything with one click. Martin, is it the same with motorcycle replacement parts?
Martin: In principle, there are major overlaps here between car replacement parts and motorcycle replacement parts. However, I’d like to highlight three differences. The first is that for the motorcycle sector, there aren’t any of those data provided by a service provider that Michael mentioned. That means providers who want to become active in this area have to compile or source these data structures themselves, or aggregate them through wholesalers available on the market. So that requires a bit more effort and can’t be covered by a license. The second point is that we have a strongly seasonal business. That means if the seller has thought about the products they want to offer, they need to know that within the season, which is usually summer in Germany, they will have very high sales volume, but in winter they should expect a full inventory. That is important for capital planning. And the third point is that procurement of goods can be more complex depending on the individual strategy. We have a very, very large number of providers here, many of whom only have a very small assortment, which, depending on where development is supposed to go, means a lot of contact with individual partners.
Isabell: Is there an equivalent to TecDoc specifically for motorcycle parts?
Martin: No.
Isabell: There isn’t, okay. Is there another tip you’d like to give sellers specifically in this category?
Martin: Yes, my tip is definitely to engage with the products, to engage with the topic. If you don’t have an affinity for motorcycles yourself and are primarily interested in the business side, meet up with people, sit down with them, to understand where the customer’s needs are, where the challenges are, so that you can really contribute meaningfully here as well.
Isabell: I find that really interesting because you’ve actually brought up exactly the points again that we discussed with Niklas back then, namely the exact challenges he had. For anyone who wants to listen to that episode again to hear it from him himself and learn directly from his experience, feel free to listen again. As I said, the link is in the show notes. We’ve now covered some differences in the two category groups, if I may call them that, and you’ve now given specific tips for motorcycle sellers. Are there then still some tips that can be applied generically to all vehicle parts categories?
Michael: Yes, absolutely. For us, customer satisfaction obviously also comes first. So I need to make sure I answer customer inquiries quickly, that I keep the delivery promises I make, that I think about shipping and logistics. I need to make sure the listing quality stays high. Customers really expect meaningful images and meaningful item descriptions. I need to make sure I provide as many features as possible, for example installation position, front or rear, as an example. Because if I don’t specify that and a customer is specifically searching for it, then my listing simply won’t appear in the search results. So these are, of course, general criteria that apply here too.
Isabell: Those tips definitely sound familiar to me and maybe to some listeners as well. We’ve already heard that in several episodes from colleagues across different categories. Are there any other things that should be specifically considered for motorcycle and car parts in the listings?
Martin: Yes, for example with products that are meant to appeal emotionally, such as sports exhaust systems or, in the motorcycle area, aftermarket turn signals or aftermarket mirrors, it’s a good idea to show them with the vehicle too, so that the interested buyer can also see: what does this exhaust look like on the motorcycle? What would the turn signal look like on a motorcycle? There is also the option of embedding short video sequences, which works very well, for example, in the clothing area. If I want to buy motorcycle clothing worth over €1,000 online, what interests me most is of course: does it fit me? That is represented by size. Here, recommendations such as runs large, runs small, or additional measurements are useful, so that the interested party can check whether it is suitable. But of course I’m also interested in: what does it look like? And there is the option to include video sequences, dress the product on a model accordingly, and display the photos here. Basically, do everything to increase confidence in the purchasing process and provide certainty in the decision here.
Isabell: And where do I ideally get these images from? Should I create them myself, or is there a source, for example from manufacturers?
Martin: As a rule, manufacturers do not provide such images. These images have to be created yourself. This also means that the listing can receive an individual touch. No other seller on the market has that. eBay also offers support here for sellers who are interested in developing further in this area.
Isabell: Okay, so even in this area it’s important that I tailor my listing so individually that I can convince as many customers as possible to buy from me.
Martin: Exactly, the listing has to give the same impression as the part on the vehicle being offered.
Isabell: Last year, the eBay vehicle parts promise was launched. Michael, what exactly is that?
Michael: Yes, we looked at the market and found that many people shy away from ordering car parts online because they don’t know for sure, or think they don’t know for sure, whether the part really fits their vehicle. And to take away that worry, we launched the vehicle parts promise.
Isabell: And what exactly happens technically with this vehicle parts promise?
Michael: Exactly. If I search for a part based on my vehicle model or my vehicle, which I’ve virtually parked in "my Garage," then we show the customer that this part fits your vehicle, based on the vehicle data that the seller provided, as we learned earlier. And if I see this green checkmark and know that the part fits, order it, receive it, and then find out it still doesn’t fit, I can always return the part free of charge because eBay will cover the return shipping costs in this case.
Isabell: So eBay covers the costs, meaning the seller doesn’t have to either.
Michael: Yes.
Isabell: That’s really cool. You just said that if I’ve parked the vehicle in "my Garage," that means I have to create my virtual car beforehand, basically.
Michael: Exactly. If I search for a specific vehicle once, that vehicle model is automatically, so to speak, put in the garage, and I can then select this vehicle or even multiple vehicles from my garage in a later search and don’t have to enter the HSN/TSN, i.e. the key number, again or click through the individual model variants, but can then access the vehicle directly and search specifically for parts for that vehicle.
Isabell: Okay, so the eBay vehicle parts promise applies to cars. Does the whole thing also apply to motorcycle parts?
Martin: Yes, the vehicle parts promise is also available for motorcycle parts. The prerequisite is that the listings are supplemented with the appropriate vehicles, and for this eBay provides a so-called vehicle application list. This application list includes almost all motorcycle and scooter models available in Germany. For each model year and each model there is an individual number, and the seller of the replacement parts must assign the corresponding vehicles to their listing. These listings then automatically benefit from the vehicle parts promise and are also found much more easily by customers, which leads to higher listing quality, a better sell-through rate, and fewer complaints.
Isabell: So I don’t get these vehicle application lists provided externally, but directly from eBay and can add them to my data.
Martin: Correct, I can either download this list. However, there are also some software providers who have already implemented these lists in their tools, so the application can then happen directly through these providers.
Isabell: Where exactly do I find it at eBay? The list?
Martin: This list is available for download on eBay. We’ll also be happy to put the link in the show notes.
Isabell: We’ll definitely do that. Today we’ve learned a lot about your areas of responsibility, your field of work at eBay. What offerings are there for listeners who want to learn more or maybe need support from you?
Michael: We offer different kinds of support for every phase of a seller’s journey. It starts with the Starter Program. I think there was also a podcast about that once. That means we really help sellers who want to start with us from scratch during the onboarding process and with their first steps. For sellers who have been with us longer, we offer personalized support with our Account Management program. We also have programs like Pro-Trader, which support sellers on a quarterly basis who want to grow and need tips and tricks. So to put it briefly: anyone interested in learning something here or getting in touch with us is welcome to contact our vehicle parts mailbox at autoteile@ebay.de, reach out to us, and then we’ll get in touch with you and be happy to show you what support options we have.
Isabell: Ah, great, and I’d say we’ll also put the email address directly in the show notes so everyone can find it again after the episode. Very nice! Now, to wrap up, I’d like to take a look into the future with you. What do you think the industry will look like over the next ten years? A lot has already changed in recent years with electromobility. What do you think will happen next?
Michael: Yes, looking into the future, especially over a ten-year horizon, is of course difficult. But of course we see the trends toward e-mobility. We also see the trend that vehicle users keep their vehicles longer than in the past, which plays a little into our hands and into the hands of our sellers, because if you keep your vehicle longer, you also need more replacement parts. And owners of older vehicles in particular are our preferred customer group. Because customers who buy a vehicle new often still have a very close relationship with their dealership, then go to the workshop, and get the car parts directly through the dealership - the customers who come to eBay are then the ones who have vehicles that are three years old or older. So we see the trend toward longer vehicle lifespans, and on the other hand, of course, a shift toward e-mobility, which in some cases also brings other parts and other maintenance topics with it. So then it’s of course no longer about an oil change, but about buying a wallbox, and we definitely see that there will be a shift in categories there.
Isabell: I can also find that on eBay, though.
Michael: You can find that on eBay too, and we’re also happy to invite sellers to offer these products with us. The market for such products is enormous. Yes!
Isabell: Anything else to add from the motorcycle side for the next few years?
Martin: I think that in the motorcycle sector we are currently seeing a professionalization of digitalization. Especially with regard to data quality, this is getting better and better, which will accordingly mean that customers will receive even more parts in even better quality and even faster. And for sellers, I think we’ll see two trends here: on the one hand, the development of larger sellers who really offer a full assortment, similar to the car sector, and on the other hand, specialization in certain niches, which would require a very high level of expertise in the field.
Isabell: Finally, there’s one question we always like to ask our guests. Namely, what was the last thing you bought on eBay? Michael, would you like to start?
Michael: Yes, unfortunately for me it wasn’t a car part or an accessory item, but actually a chess book for my eight-year-old son.
Isabell: A chess book for an eight-year-old son: okay, that’s very specific too. Martin, what was the last thing you bought on eBay?
Martin: For me it was an electronic parking disc to avoid further fines from the local authorities.
Isabell: Okay, not a car part directly, but at least in your area. Yes, thank you very much for your helpful info and for being here in the studio with me today, both of you, and of course many thanks to all of you out there for joining us again. Bye, and until next time!
Martin: Thank you very much for the invitation.
Michael: Yes, thank you very much, from my side too.
Michael: It’s important for me to think about the market situation. So of course I need to look at, if I’m offering products that are already sold via eBay, whether I hit certain prices or price points, or whether I stand out through especially fast deliveries, or whether I manage to occupy niches, i.e. product segments that are not yet so well represented with us.
Isabell: Hello and welcome to "Alles top. Gerne wieder!" The eBay podcast about trade and e-commerce. I’m Isabell Butterwegge, and today we’re talking about vehicle parts and accessories. And because this topic is completely new territory for me, I’ve brought two experts into the studio who also have a great personal passion for cars and motorcycles, Michael Sievritts and Martin Menzel. Michael is Senior Manager Partnerships at eBay and is responsible for cooperation with manufacturers and brands and for original and used parts. And when Martin isn’t on the racetrack, he optimizes the product range from the motorcycle world at eBay as Senior Inventory and Account Manager and keeps an eye on current industry trends. Hi and welcome, Michael and Martin!
Martin: Hello.
Michael: Hello!
Isabell: By the way, it’s worth sticking around! Not just because of these two experts here. Later on we’ll also hear from a successful seller about the tips he has for you. So stay tuned! But first, let’s dive straight into the interview. Michael, in the vehicle parts and accessories area, we are very popular as a marketplace with both sellers and buyers. That makes me wonder: how was eBay able to position itself so well in this market?
Michael: For eBay, car parts and accessories were an important topic from the very beginning, and we introduced innovative technologies early on that make it easier for customers to find a suitable part for their specific vehicle. I think we’ll come back to this topic later in the podcast. Customers also have the option of using "My Garage." So, in a way, it’s a tool where I can virtually park my vehicle and then find the right part more quickly in future searches. We also stand out because we have a huge range, an incredible breadth, including item condition. Customers can find both new items and refurbished or used parts with us. We offer parts from OEMs, i.e. original manufacturers, top brands, our own brands, but also no-name brands or brands from China. And not just individual components, but complete sets too, such as brake sets, for example, or inspection packages, which naturally makes it easier for the customer to order exactly what I’m looking for for my planned installation service.
Isabell: So, an enormous range of products can be found on eBay. To sell these successfully, sellers probably first need to understand their target group. You’ve just mentioned many different product categories, or product conditions as well. Who actually buys in these areas on eBay?
Michael: Yes, that’s a good question. We have a very broad range of different customer segments. Basically, we distinguish between the customer who installs the parts themselves, the so-called do-it-yourself customer, or the do-it-for-me customer, who buys the parts but then takes them to a friend or a workshop to have them installed there. And among the do-it-yourself customers, we also distinguish between the standard customer or beginner, people like me for example, who might manage to change the windshield wiper themselves, or the pro, i.e. a professional gearhead, or the workshop itself, which handles the whole thing professionally.
Isabell: So, a super broad spectrum both on the product side and on the customer side. Martin, in our pre-talk we also realized that trading in car and motorcycle parts differs a bit from trading in other categories. What is so special about this area?
Martin: Yes, we have to imagine that cars and motorcycles have been around for more than 100 years. New models come onto the market every year, and each of these models requires not only replacement parts, such as brakes or shock absorbers, but also products that the owner wants to buy individually for their vehicle. This results in an incredibly wide variety of replacement parts available on the market. We’re talking here in some cases about sellers offering up to 500,000 individual products. The challenge here is that there isn’t always structured data available for these products on the market, as we’d like from our sellers at eBay. We’re talking, for example, about images, but also technical data such as installation position or size data, weight data, or fitment, i.e. exactly which vehicle a part is available for. This of course offers enormous potential, but also a hefty amount of work that is needed here to compete in the market.
Isabell: So in this category, is it the case that most sellers are represented on eBay with a large catalog?
Martin: Well, that doesn’t have to be the case, but I think if you’re getting started here or want to be successful in sales, then you have to ask yourself: what do I want, what is the goal, what should be achieved? Do I want to offer the broadest possible variety as a provider? Then yes, then I need this variety of products, but I also have to face very, very broad competition and think about sourcing routes, shipping routes, and how I can scale the whole thing and map it technically. Or I say, I don’t want all that. But I’m an expert in a very specific area, maybe for product groups like brakes or for specific vehicle models in the classic car area, maybe a VW Beetle, or an old motorcycle, and I want to offer everything for exactly this model. Then other needs arise from that.
Isabell: Yes, you also have to be our expert for trading motorcycle replacement parts. We already know you from the episode we recorded last year with parts seller Niklas Priddat from Global Motor Parts. For anyone who wants to listen again, we’ll also put the link in the show notes again. But I’d now be interested to know whether there is also a difference between selling motorcycle replacement parts and car parts on eBay.
Martin: Fundamentally there are certainly many similarities between the two areas, because whether a car needs new brake pads or a motorcycle does is basically the same. However, there are differences, for example in the users. A car is usually used for everyday needs; it has to work and should be reliable every day. Motorcycles are often hobby-oriented vehicles that are cared for and maintained by enthusiasts. That means these customers research more deeply when needed, have certain brand preferences, love their vehicle, want to show it off, and we also have significantly more optimization potential here than, for example, in the car sector. There are people for whom their biggest hobby is completely rebuilding their motorcycle. You can’t even tell what it used to be anymore. And on top of that, we have another special feature, namely that in addition to the motorcycle, the rider also has to be considered. So we also include the clothing area, which brings completely different challenges, for example sizes, designs, or fit, which are relatively difficult to represent digitally.
Isabell: Ah, okay, yes, our fashion colleagues would probably agree. We also talked about that in the pre-talk. You just mentioned that data quality in the car and motorcycle parts area in general is a major challenge because it’s often not that good. Our partner TecDoc offers an exception here, you could say. Can you still explain what TecDoc is and what it’s about?
Michael: Yes, TecDoc is, if you will, the industry standard for us. So it’s the big catalog of car parts, which parts manufacturers also supply with data, and TecDoc also indicates, for example, which vehicle models a specific part fits. And this information is of course incredibly important for sellers to provide too. Because, as I said at the beginning, the customer is looking for parts that fit their vehicle, and if I as a seller don’t provide this information, then my listing obviously won’t be found either.
Isabell: We know that many of you find tips from other sellers helpful who have already successfully scaled their business, and that’s exactly why I contacted Artur Oswald to get a few tips from him. Artur is the founder and managing director of Retromotion, which specializes in selling replacement parts for cars, and I talked to him briefly about his experiences in e-commerce. Arthur, every beginning is hard. You certainly know that if you look back on the early days of your business. What are the biggest mistakes you would want to protect our listeners from?
Artur: Yes, dear Isabell, first of all many thanks. Yes, there were some mistakes that we made at the beginning and certainly still make today, and I think the most important thing is first of all to have the right mindset so that mistakes don’t discourage you. When we talk about the early days, we had the opportunity back then to access a very large assortment. We had access to around 50,000 SKUs that we prepared for sales across various online channels. Among others, of course also eBay as the most attractive channel, and that’s where the crux of the whole thing already lay. With 50,000 SKUs, you’d have to look at attributes 50,000 times, look at descriptions, look at images, and that was then more of a hindrance than a help for getting started on eBay. Back then we also set the wrong focus, looking more at tooling. Which tools can actually be used to upload all these many SKUs? Etcetera. A lot of time was wasted on that. In retrospect, the recommendation here is definitely to start very small, to approach a marketplace like eBay. Start with one product and look at what data, settings, and tooling are needed for this one product, then take those learnings for maybe the second item, the third item, and from there scale up. So definitely don’t start with 50,000 SKUs, but rather with exactly one SKU and learn from that.
Isabell: Did you start directly with eBay, or did you first start with your own webshop back then?
Artur: We started in parallel. We actually had the idea from the very beginning of having our own shop and creating a connection from the shop to eBay, and none of that was helpful. Um, that was just a complete overload on our part, and the first attempts were really discouraging because, despite the high number of SKUs, no relevant sales were generated, and then we had to backtrack accordingly and really start small first. But it took us a while to understand that as well. #00:12:17-2# Isabell: Okay, so don’t make the mistake of starting too big right away. As an experienced managing director, you probably still have a whole lot of other tips you could share with us. What would your top 3 tips be that our listeners should take to heart? #00:12:34-4# Artur: Exactly, so besides assortment selection, but also in connection with that, definitely market observation. Because market observation lets you draw conclusions. So which SKUs do I go in with? Identifying where potential market gaps are, where the market is still inefficient, for example in terms of availability, price, delivery speed, and we also didn’t have that on our radar at first. Accordingly, we only had to gain that experience until we then also consistently expanded our assortment while continuously monitoring the market. And last but not least: Don’t be impatient, I notice that often. Fortunately, we stuck with it and developed the ambition to somehow make these SKUs successful. That means a lot of trial and error, trying things out until the listing you create is right for the end customer and then actually sells.
Isabell: How do you do market analysis? Have you discovered any tool or functionality that helps you stay on top of it?
Artur: We actually use a tool from eBay, namely Terapeak. We look there, go into the analysis, enter the EAN code or item number, and do product research, look at the competition, look at what market potential lies behind it, and what the sales figures are. That’s exactly something that makes eBay unique, that such tools are made available to sellers, and I think in the end that also serves the end customer who shops through it. .
Isabell: Okay, so to begin with, bring a manageable assortment selection to market, then get a feel for the market, maybe use tools to help you, and above all show perseverance. That’s how I’d summarize your three tips now. There are certainly still some of our listeners who may already have taken their first steps in the area of car and motorcycle replacement parts and may already be successful, but who would like to take the next step now to increase their revenue even further. Do you maybe have one final piece of advice on how that could be achieved?
Artur: So, on the one hand, it’s more of a permanent task, and that permanence has to be shown in listing quality, namely making sure that all data fields are filled out carefully, that the images are correct, so that the conversion rate can happen. The better the data, the fewer returns you have in the end, which lowers your own costs. We want to make the details as precise as possible, and also filling in every field that’s offered actually has the advantage that your products are easier to find. Customers search in different ways: one through free-text search, the next through the filter settings, and those in turn access different data foundations, and the more completely everything is maintained, the more successful the customer’s search for the right replacement part will be. Exactly, the last tip is something you also have to deal with permanently: logistics. Customer expectations regarding logistics and delivery are very high. Yes, people basically expect delivery the next day, and if you do get bad reviews, it’s often in connection with non-delivery, and not because they were dissatisfied with the product quality in any way. And yes, that’s why I can’t stress the importance of logistics enough. There too, it’s a matter of continuously gaining speed through process optimization, more manpower, and further digitization in order to, yes, simply meet end customers’ expectations here, and that’s why this is definitely a topic that constantly accompanies us as well.
Isabell: A very nice final tip. In fact, we recently recorded a small podcast mini-series on the topic of "let’s talk about shipping," where we also went into this in detail and discussed valuable tips with our logistics experts, not just in the vehicle parts area. It’s generally a super important topic across all categories. So it’s great that you brought that up here as well. Thank you Artur for taking the time to summarize your tips for our listeners.
Martin: Thank you, Isabell.
Isabell: Before we switch back to Michael and Martin in the studio, here’s a quick note from us. We’re always very happy when you send us feedback on our podcast episodes. You can do that either in the eBay Community or on our Facebook page eBay for Business Deutschland. So please feel free to write to us whether you already trade in car and motorcycle replacement parts or maybe are thinking about getting started. Got more tips for the community? Bring them on! We’d also be happy if you leave us a subscription or a like wherever you’re listening to us right now. Artur just said in the clip that he basically had the same problem. He had too many products way too quickly and basically couldn’t keep up with the data. So how can sellers use TecDoc for themselves now?
Michael: Yes, that really depends on the size of my inventory. So if I start, as Artur recommended, with a small assortment, then we offer the option of automatically pulling in the TecDoc data in the sales form using the part number. All that’s required is that I take out a license from TecDoc once, which is relatively inexpensive, and once I have this license and this function is activated, I can automatically transfer the so-called vehicle application data, i.e. the lists of suitable vehicles, into the listing based on the manufacturer number and then list the item. Yes!
Isabell: Is that the market standard, that you actually have this license?
Michael: Yes, you do need the license. TecDoc lives off that; their business model is, so to speak, to aggregate and provide all the data in this form and to offer this market standard, and that’s why it’s required. But it’s a low-cost license that is needed here. And as I said, when it comes to a larger inventory that I can no longer handle manually, i.e. where I need automated processes, there is the option of working with third-party providers, whom we also publish on our pages, to help me transfer this data on a large scale.
Isabell: Ah, very good, then let’s also stick directly to concrete recommendations for action. Michael, what tips would you give to aspiring sellers who are just starting their business in this area?
Michael: Yes, we heard that from Artur too. I think it’s very important at the beginning to first think about what my core competence actually is. So am I the expert for a specific topic? For certain product segments like classic cars or motorcycles, do I have a high level of expertise in that area and a large product range, so to speak? Or do I want to target a broad assortment, where the focus is more on automating processes and keeping processes under control. I need to clarify that at the start.
Isabell: So, basically first become clear about which direction I actually want to go in? So how do I want my strategy to look, where are my core competencies, and then think about how I can get there? So do I need technical support? With a third-party provider, do I need to secure myself with a vehicle application list via TecDoc, so to speak.
Michael: Correct. Isabell: What else do you think is important if I want to buy successfully in this area?
Michael: It’s important, as Artur already mentioned, for me to think about the market situation. So I have to look, if I’m offering products that are already sold via eBay, whether I’m hitting certain prices or price points, or whether I stand out through especially fast deliveries, or whether I manage to occupy niches, i.e. product segments that are not yet so well represented with us, which of course is difficult because we already have a broad assortment. But for example, bundling packages is always really exciting, meaning I really think about which inspections the customer needs, which parts, and then bundle them into a package. That naturally gives me less price transparency and also gives me opportunities to actually gain margins here. Yes!
Isabell: What exactly do you mean by sets?
Michael: Yes, sets are basically bundles or product assortments in one listing that I need for a specific case. I always like to use the example of brake sets. So that doesn’t just include the brakes... discs, brake discs, but also the brake pads, the necessary screws or, in the case of an inspection package, all the necessary filters I need for it, the oil, the drain plugs, so everything I need for that one inspection is then included in one offer.
Isabell: Of course that’s super practical for buyers when I can get everything with one click. Martin, is it the same with motorcycle replacement parts?
Martin: In principle, there are major overlaps here between car replacement parts and motorcycle replacement parts. However, I’d like to highlight three differences. The first is that for the motorcycle sector, there aren’t any of those data provided by a service provider that Michael mentioned. That means providers who want to become active in this area have to compile or source these data structures themselves, or aggregate them through wholesalers available on the market. So that requires a bit more effort and can’t be covered by a license. The second point is that we have a strongly seasonal business. That means if the seller has thought about the products they want to offer, they need to know that within the season, which is usually summer in Germany, they will have very high sales volume, but in winter they should expect a full inventory. That is important for capital planning. And the third point is that procurement of goods can be more complex depending on the individual strategy. We have a very, very large number of providers here, many of whom only have a very small assortment, which, depending on where development is supposed to go, means a lot of contact with individual partners.
Isabell: Is there an equivalent to TecDoc specifically for motorcycle parts?
Martin: No.
Isabell: There isn’t, okay. Is there another tip you’d like to give sellers specifically in this category?
Martin: Yes, my tip is definitely to engage with the products, to engage with the topic. If you don’t have an affinity for motorcycles yourself and are primarily interested in the business side, meet up with people, sit down with them, to understand where the customer’s needs are, where the challenges are, so that you can really contribute meaningfully here as well.
Isabell: I find that really interesting because you’ve actually brought up exactly the points again that we discussed with Niklas back then, namely the exact challenges he had. For anyone who wants to listen to that episode again to hear it from him himself and learn directly from his experience, feel free to listen again. As I said, the link is in the show notes. We’ve now covered some differences in the two category groups, if I may call them that, and you’ve now given specific tips for motorcycle sellers. Are there then still some tips that can be applied generically to all vehicle parts categories?
Michael: Yes, absolutely. For us, customer satisfaction obviously also comes first. So I need to make sure I answer customer inquiries quickly, that I keep the delivery promises I make, that I think about shipping and logistics. I need to make sure the listing quality stays high. Customers really expect meaningful images and meaningful item descriptions. I need to make sure I provide as many features as possible, for example installation position, front or rear, as an example. Because if I don’t specify that and a customer is specifically searching for it, then my listing simply won’t appear in the search results. So these are, of course, general criteria that apply here too.
Isabell: Those tips definitely sound familiar to me and maybe to some listeners as well. We’ve already heard that in several episodes from colleagues across different categories. Are there any other things that should be specifically considered for motorcycle and car parts in the listings?
Martin: Yes, for example with products that are meant to appeal emotionally, such as sports exhaust systems or, in the motorcycle area, aftermarket turn signals or aftermarket mirrors, it’s a good idea to show them with the vehicle too, so that the interested buyer can also see: what does this exhaust look like on the motorcycle? What would the turn signal look like on a motorcycle? There is also the option of embedding short video sequences, which works very well, for example, in the clothing area. If I want to buy motorcycle clothing worth over €1,000 online, what interests me most is of course: does it fit me? That is represented by size. Here, recommendations such as runs large, runs small, or additional measurements are useful, so that the interested party can check whether it is suitable. But of course I’m also interested in: what does it look like? And there is the option to include video sequences, dress the product on a model accordingly, and display the photos here. Basically, do everything to increase confidence in the purchasing process and provide certainty in the decision here.
Isabell: And where do I ideally get these images from? Should I create them myself, or is there a source, for example from manufacturers?
Martin: As a rule, manufacturers do not provide such images. These images have to be created yourself. This also means that the listing can receive an individual touch. No other seller on the market has that. eBay also offers support here for sellers who are interested in developing further in this area.
Isabell: Okay, so even in this area it’s important that I tailor my listing so individually that I can convince as many customers as possible to buy from me.
Martin: Exactly, the listing has to give the same impression as the part on the vehicle being offered.
Isabell: Last year, the eBay vehicle parts promise was launched. Michael, what exactly is that?
Michael: Yes, we looked at the market and found that many people shy away from ordering car parts online because they don’t know for sure, or think they don’t know for sure, whether the part really fits their vehicle. And to take away that worry, we launched the vehicle parts promise.
Isabell: And what exactly happens technically with this vehicle parts promise?
Michael: Exactly. If I search for a part based on my vehicle model or my vehicle, which I’ve virtually parked in "my Garage," then we show the customer that this part fits your vehicle, based on the vehicle data that the seller provided, as we learned earlier. And if I see this green checkmark and know that the part fits, order it, receive it, and then find out it still doesn’t fit, I can always return the part free of charge because eBay will cover the return shipping costs in this case.
Isabell: So eBay covers the costs, meaning the seller doesn’t have to either.
Michael: Yes.
Isabell: That’s really cool. You just said that if I’ve parked the vehicle in "my Garage," that means I have to create my virtual car beforehand, basically.
Michael: Exactly. If I search for a specific vehicle once, that vehicle model is automatically, so to speak, put in the garage, and I can then select this vehicle or even multiple vehicles from my garage in a later search and don’t have to enter the HSN/TSN, i.e. the key number, again or click through the individual model variants, but can then access the vehicle directly and search specifically for parts for that vehicle.
Isabell: Okay, so the eBay vehicle parts promise applies to cars. Does the whole thing also apply to motorcycle parts?
Martin: Yes, the vehicle parts promise is also available for motorcycle parts. The prerequisite is that the listings are supplemented with the appropriate vehicles, and for this eBay provides a so-called vehicle application list. This application list includes almost all motorcycle and scooter models available in Germany. For each model year and each model there is an individual number, and the seller of the replacement parts must assign the corresponding vehicles to their listing. These listings then automatically benefit from the vehicle parts promise and are also found much more easily by customers, which leads to higher listing quality, a better sell-through rate, and fewer complaints.
Isabell: So I don’t get these vehicle application lists provided externally, but directly from eBay and can add them to my data.
Martin: Correct, I can either download this list. However, there are also some software providers who have already implemented these lists in their tools, so the application can then happen directly through these providers.
Isabell: Where exactly do I find it at eBay? The list?
Martin: This list is available for download on eBay. We’ll also be happy to put the link in the show notes.
Isabell: We’ll definitely do that. Today we’ve learned a lot about your areas of responsibility, your field of work at eBay. What offerings are there for listeners who want to learn more or maybe need support from you?
Michael: We offer different kinds of support for every phase of a seller’s journey. It starts with the Starter Program. I think there was also a podcast about that once. That means we really help sellers who want to start with us from scratch during the onboarding process and with their first steps. For sellers who have been with us longer, we offer personalized support with our Account Management program. We also have programs like Pro-Trader, which support sellers on a quarterly basis who want to grow and need tips and tricks. So to put it briefly: anyone interested in learning something here or getting in touch with us is welcome to contact our vehicle parts mailbox at autoteile@ebay.de, reach out to us, and then we’ll get in touch with you and be happy to show you what support options we have.
Isabell: Ah, great, and I’d say we’ll also put the email address directly in the show notes so everyone can find it again after the episode. Very nice! Now, to wrap up, I’d like to take a look into the future with you. What do you think the industry will look like over the next ten years? A lot has already changed in recent years with electromobility. What do you think will happen next?
Michael: Yes, looking into the future, especially over a ten-year horizon, is of course difficult. But of course we see the trends toward e-mobility. We also see the trend that vehicle users keep their vehicles longer than in the past, which plays a little into our hands and into the hands of our sellers, because if you keep your vehicle longer, you also need more replacement parts. And owners of older vehicles in particular are our preferred customer group. Because customers who buy a vehicle new often still have a very close relationship with their dealership, then go to the workshop, and get the car parts directly through the dealership - the customers who come to eBay are then the ones who have vehicles that are three years old or older. So we see the trend toward longer vehicle lifespans, and on the other hand, of course, a shift toward e-mobility, which in some cases also brings other parts and other maintenance topics with it. So then it’s of course no longer about an oil change, but about buying a wallbox, and we definitely see that there will be a shift in categories there.
Isabell: I can also find that on eBay, though.
Michael: You can find that on eBay too, and we’re also happy to invite sellers to offer these products with us. The market for such products is enormous. Yes!
Isabell: Anything else to add from the motorcycle side for the next few years?
Martin: I think that in the motorcycle sector we are currently seeing a professionalization of digitalization. Especially with regard to data quality, this is getting better and better, which will accordingly mean that customers will receive even more parts in even better quality and even faster. And for sellers, I think we’ll see two trends here: on the one hand, the development of larger sellers who really offer a full assortment, similar to the car sector, and on the other hand, specialization in certain niches, which would require a very high level of expertise in the field.
Isabell: Finally, there’s one question we always like to ask our guests. Namely, what was the last thing you bought on eBay? Michael, would you like to start?
Michael: Yes, unfortunately for me it wasn’t a car part or an accessory item, but actually a chess book for my eight-year-old son.
Isabell: A chess book for an eight-year-old son: okay, that’s very specific too. Martin, what was the last thing you bought on eBay?
Martin: For me it was an electronic parking disc to avoid further fines from the local authorities.
Isabell: Okay, not a car part directly, but at least in your area. Yes, thank you very much for your helpful info and for being here in the studio with me today, both of you, and of course many thanks to all of you out there for joining us again. Bye, and until next time!
Martin: Thank you very much for the invitation.
Michael: Yes, thank you very much, from my side too.
2 comments
steffi@ebay
Hello @descheuer, are you getting an error message, and has it always worked before, or is this the first time you want to use this function?
Thanks a lot,
Steffi
descheuer
·2 years agoI can't add my car to "my garage"