Report: Amazon Jumps Into Auto Supply Market

Amazon executives reportedly hope to dramatically expand the e-retailer's reach into the retail auto parts market with a slew of recent agreements with top manufacturers.

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Amazon executives reportedly hope to dramatically expand the e-retailer's reach into the retail auto parts market with a slew of recent agreements with top manufacturers.

The New York Post, citing unnamed sources, reported that Amazon is now partnering with Cardone Industries, Dorman Products, Federal-Mogul and Robert Bosch — four of the top auto parts makers in the U.S.

The report suggested that auto parts chains — including O’Reilly, Advance, AutoZone and Genuine -- took advantage of their relationships with suppliers, along with private-label parts largely made overseas, to bolster their revenues in recent years.

As a result, however, manufacturers likely aren't as enthusiastic about helping the retail chains, particularly when Amazon is reportedly paying a premium for parts.

The Post suggested that Amazon is also selling parts for less, on average, than their brick-and-mortar rivals.

That could quickly increase Amazon's share of the $50 billion do-it-yourself auto parts market at the expense of the chains. One projection estimated that Amazon could increase its auto parts business by more than 50 percent this year, which would amount to some $5 billion.

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