CarParts.com Looks to Mobile App, Content Marketing to Drive Profits

CarParts.com is leaning heavily on its new mobile app and its revamped content marketing efforts as it looks to boost its gross profit.

These initiatives around commerce experience and marketing are paying off in higher sales volume and lower customer acquisition costs, David Meniane, CEO of Carparts.com, said Thursday (March 7) during a quarterly earnings call.

The eCommerce provider of automotive parts and accessories launched its mobile app in August 2023. Today, the app has more than 250,000 downloads and accounts for 7% of the company’s total eCommerce revenue, Meniane said.

Over time, the app engagement is going to grow the top line and make marketing spend more efficient, he added.

“With 80% of our customers using mobile phones to purchase their automotive parts, we’re confident that, over time, direct in-app purchases will reduce our reliance on search engines and performance marketing,” Meniane said.

Meniane said during the call that the performance of the mobile app is so important that on every earnings call going forward, CarParts.com will share the number of users, the percentage of eCommerce revenue and any other relevant metrics.

In November 2023, CarParts.com launched a refreshed content marketing strategy that includes a new podcast, a revamped blog, and a series of educational and instructional videos. This content teaches customers how to take care of their cars, and includes links to links to products on the company’s website and mobile app.

Historically, the company focused its marketing investments on Google advertising, Meniane said during the call. However, in 2024, it is focusing on creating new video content on its own channel.

“We can already share that in the first two months of 2024, our YouTube views are up to 15 million, an increase of more than 10 times on a year-over-year basis,” Meniane said. “We believe over time our own content push will help us acquire new customers, drive revenue and lower customer acquisition costs.”

During the fourth quarter and fiscal year ended Dec. 30, CarParts.com saw its net sales increase 2% year over year while its gross profit decreased slightly, according to a Tuesday earnings release.

The company attributed its decrease in gross margin in 2023 to higher outbound transportation costs, a shift in product mix and industrywide price deflation.

The difficult macro environment, price compression and inclement weather have also led to a slow start in 2024, Meniane said during the call.

As a result, the company announced Thursday that it is eliminating 150 global roles to help reduce its cost structure. The cuts are being made across the board, impacting about 15% of corporate roles and 10% of frontline positions.

“These decisions are not made lightly, but we want to stay agile,” Meniane said. “We want to protect shareholder value and realign to the reality of the environment.”