Amazon could see a dramatic expansion of its automotive parts business after reaching agreements with top industry suppliers in recent months.
The New York Post, citing unnamed sources, reported that Amazon secured dealswith Cardone Industries, Dorman Products, Federal-Mogul and Robert Bosch — four of the top parts manufacturers in the U.S. — in recent months.
The report added that the nation's top retail auto parts chains, including O’Reilly, Advance, AutoZone and Genuine, could be impact by the e-retailer's efforts in do-it-yourself auto repair.
The do-it-yourself auto parts business is a $50 billion market, and one Wall Street projection suggested that Amazon could see its share of that business expand to $5 billion this year — an increase of more than 50 percent from current levels.
Retail chains, the Post noted, took advantage of their relationships with top suppliers to bolster profits in recent years, but Amazon is reportedly both paying a premium for parts and selling them online at lower costs.
Manufacturers also aren't likely to be enthusiastic about helping retailers after those companies increasingly turned to private-label parts often produced overseas.