The Missing Piece to the B2B Automotive Parts Industry: A BNPL Solution
The B2B automotive parts industry has a lot of…moving parts—excuse the pun. This industry has an extensive and intricate supply chain which requires many businesses to work simultaneously at different levels across the spectrum including manufacturers, importers, suppliers, and ultimately garages. Canada can be an overlooked market for many industries that also operate in the United States and automotive parts are no exception. However, a recent study found that 83% of Canadians either own or lease a car, which equals approximately 32 million individual owners. Accordingly the necessity for auto parts distribution is certainly not one to be underestimated in the country. Whether a business works exclusively in Canada or has a Canadian branch, tabit can help. Wholesale distributors offer the flexible payment options that buyers enjoy in the United States.
While the automotive parts industry may have its own particularities, many of the challenges faced within the B2B space are universal. The two that stand out in particular are inventory and cash flow management. Whether you’re a distributor, retail store, or garage, these two points are an ongoing challenge across the industry at every level.
Parts, Parts, and More Parts
Having to account for the extensive amount of makes and models, let alone all the individual parts and components, there is certainly a lot to keep in stock. Changes in production cycle or consumer demand, including the growing demand for EV parts, means that there are countless variables to consider as a wholesale distributor. Moreover, the ongoing supply chain challenges and the soaring cost of new vehicles has caused existing vehicle owners to seek out replacement parts for their cars to keep them running longer.
Retail garages that buy from wholesale distributors, must balance the cost of holding inventory on hand versus dissatisfaction of consumers if parts are unavailable. Thus, flexible payment options offered by their suppliers will play a crucial role in helping them manage their cash flow.
Why Sellers are Key to Improvement
As a B2B seller, offering tabit through your e-commerce platform enables your buyers with the flexibility to maintain the necessary inventory levels, without the stress of having to pay the full sum upfront. Equally, sellers get the benefit of receiving the funds within one business day, which improves their own cash flow.
Like the Cars Themselves, The Industry is Evolving
Ready to ship inventory available makes auto parts distributors perfectly positioned to capitalize on the incredible growth of B2B eCommerce. The growing appetite for online shopping has seen small businesses go to where they have the most convenience and speed. Thus, wholesale distributors are improving the entire experience of their website from the search capabilities to more user friendly content. Finally, the entire experience comes together when easy to use flexible financing options are made available directly at Point-of-Sale.
Servicing Customers Who May Otherwise Be Overlooked
While there are many “mom and pop” shops in the space who are ideal B2B buyers, it can be difficult for these businesses to access traditional financing or enough credit to be able to make larger inventory purchases. By offering Buy Now, Pay Later solutions, sellers are helping to close that financing gap. In doing so, they equip their buyers to be able to make larger and more frequent purchases as they can pay it off over time.
Amidst all the moving parts no matter how big or small, B2B BNPL financing solutions like tabit offer an improved and optimized process for both buyers and sellers, and as those in the automotive parts industry know, making a single small change can result in a substantial impact. To learn more about how tabit can help your automotive parts business, get in touch with us today!