The year has been turbulent for online automotive parts retailer CarParts.com, and its Q3 sales followed suit.

However, the company is looking beyond 2024, focusing on long-term growth opportunities, including a strategic push into B2B ecommerce, CEO David Meniane shared during a recent earnings call.

“Our wholesale commercial sales channel, excluding the impact of our Las Vegas move, is up mid-single digits,” Meniane said. “These three categories [including OE premium brands and European brands] accounted for approximately 5% of our overall business in the quarter and are expected to grow rapidly as we expand our assortment, transforming our customer profile.”

CarParts.com ecommerce sales in Q3

For its fiscal Q3 ending Oct. 30, CarParts.com reported revenue of $144.8 million. That’s a 13% decline from $166.9 million in the same period last year. The net loss widened to $10 million compared to $2.5 million in Q3 2023.

Despite these setbacks, Meniane highlighted progress on key initiatives, including re-platforming the website.

“Over the last 12 months, we’ve worked to re-platform CarParts.com, enhancing performance and accelerating development cycles,” Meniane said. “I’m proud to announce that the site is now powered by best-in-class cloud-based infrastructure, enabling us to roll out new features faster than ever.”

The automotive ecommerce parts market is projected to exceed $23 billion in annual sales by 2026, according to the U.S. Auto Care Association. CarParts.com, with its recent initiatives, says it is well-positioned to capitalize on this growth.

4 key CarParts.com initiatives

1. Expanded SKU inventory
   CarParts.com now offers an inventory of 1.429 million SKUs with detailed product descriptions, attributes, and images. The company uses both dropship and stock-and-ship methods to maximize order fulfillment flexibility.
2. New supplier agreement
   In Q3, CarParts.com strengthened its partnership with SimpleTire, one of the largest tire distributors. SimpleTire offers a catalog of 55 million tires from over 300 top brands, including Pirelli, Yokohama, and Continental. The platform’s integration with SimpleTire’s network of 10,000 installers simplifies tire shopping for customers, who can search by vehicle type, tire size, or performance category to find their perfect fit.
3. New distribution center
   In July, the company opened a 202,000-square-foot distribution facility in Las Vegas, increasing its operational efficiency and scalability.
4. New chief marketing officer
   Also in July, CarParts.com appointed Christina Thelin as chief marketing officer (CMO). She oversees product and brand marketing, performance marketing, loyalty programs, creative initiatives, and consumer insight.

Meniane remains optimistic about the company’s trajectory despite recent challenges.

“We are transitioning to seize opportunities within the fragmented and underserved $400 billion auto parts market,” he said. “Customers value our differentiated business model, which is scalable and difficult to replicate.”

CarParts.com now manages over 100 million ecommerce visits annually and operates a nationwide fulfillment network spanning 1.2 million square feet, offering two-day shipping across most of the country, the company says.

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