CarParts.com is relying heavily on a new mobile app and revamped content marketing efforts in an effort to increase gross profits.
These commerce experience and marketing efforts are paying off in the form of increased sales volume and lower customer acquisition costs. david menianCEO of Carparts.com, said on Thursday (March 7) during a quarterly earnings call.
The auto parts and accessories e-commerce provider launched its mobile app in August 2023. Currently, the app has more than 250,000 downloads, Menian said, and accounts for 7% of the company's total e-commerce revenue.
Over time, app engagement will increase sales and make marketing spend more efficient, he added.
“With 80% of our customers using their mobile phones to purchase auto parts, we believe that direct in-app purchasing will reduce our reliance on search engines and performance marketing over time.” says Menian.
Menian said during the call that because mobile app performance is so important, CarParts.com will share user numbers, percentage of e-commerce revenue and other relevant metrics in each future earnings release.
In November 2023, CarParts.com is revamped. content marketing This strategy includes a new podcast, a revamped blog, and a series of educational and instructional videos. This content teaches customers how to care for their cars and includes links to products on the company's website and mobile app.
Menian said during the call that the company has historically focused its marketing investments on Google Ads. However, in 2024, the company will focus on producing new video content on its own channel.
“I can already share that in the first two months of 2024, YouTube views reached up to 15 million, an increase of more than 10 times year-on-year,” Menian said. “Over time, we believe that promoting unique content will help us attract new customers, increase revenue, and reduce customer acquisition costs.”
During CarParts.com's fourth quarter and fiscal year ended Dec. 30, net sales rose 2% year-over-year, but gross profit decreased slightly, according to an announcement Tuesday. earnings release.
The company cited rising overseas transportation costs, changes in product mix, and industry-wide price declines as factors for the decline in gross profit in 2023.
A difficult macro environment, price compression and adverse weather conditions also contributed to the delayed start to 2024, Menian said on the call.
As a result, the company announced Thursday it would cut 150 roles globally to reduce its cost structure. The cuts are across the board, affecting around 15% of corporate roles and 10% of frontline jobs.
“These decisions are not taken lightly, but we want to remain nimble,” Menian said. “We want to protect shareholder value and realign with environmental realities.”
