Pricing is one of the most important factors that determines whether customers buy parts from your online store. At the same time, pricing is often one of the most misunderstood parts of e-commerce—especially for parts managers who are new to selling online.
A common concern we hear is,“I don’t want to race to the bottom on price, but I also don’t want to price myself out of the market.”
The good news is that successful online parts stores do not win by being the cheapest. They win by pricing intentionally, based on their own goals, their department’s capacity, and how customers actually shop online.
This guide explains online pricing in plain language, shows you how pricing affects performance, and walks you through a sustainable approach that protects both profitability and sanity.
Why pricing matters online (and why lowest price doesn’t always win)
Online shoppers can compare prices very quickly. That means pricing matters—but it’s only one piece of the buying decision.
Research across e-commerce consistently shows that customers consider:
Total cost (part price + shipping)
Trust in the seller
Ease of checkout
Confidence they’re buying the correct part
Delivery expectations
In other words, customers don’t always buy from the lowest-priced seller. They buy from the seller who feels like the best overall value.
This is especially true for auto parts, where accuracy, fitment, and trust are critical.
Step 1: Decide what success looks like for your department
Before adjusting any pricing, you need to answer one simple question: What do I want my online parts store to do for my department?
There is no single “right” answer. Different goals require different pricing approaches.
Option 1: volume-focused strategy
A volume-focused strategy prioritizes order count over margin per order.
This approach may make sense if:
You have efficient fulfillment processes
You have staff capacity to handle higher volume
Your dealership benefits from OEM incentives or backend programs
What this looks like in practice:
Competitive pricing across many SKUs
Higher daily order volume
Lower margin per order
Greater operational workload (picking, packing, shipping, customer questions)
This model can work, but only if your operations are prepared for it. High volume without efficiency can quickly overwhelm a parts department.
Option 2: balanced volume + gross profit (most common)
This is the most sustainable strategy for most dealerships.
Here, your online store acts as an extension of your physical parts counter:
Prices are competitive, but not the lowest
Profit per order is healthier
Order volume is manageable
Staffing and fulfillment stay under control
Dealers using this approach often:
Price within a reasonable competitive range (not at MSRP)
Use free shipping selectively
Run limited promotions instead of permanent discounts
Focus on customer experience and accuracy
This strategy avoids the “race to the bottom” while still driving steady online sales.
Option 3: web presence / getting started
If you’re new to e-commerce or want a low-maintenance approach:
Pricing at or near MSRP is acceptable
Order volume will be lower
Day-to-day workload stays light
This approach is often used as a starting point while dealers learn how online customers behave and what operational impact they’re comfortable with.
Step 2: Understand that pricing is more than just the part price
One of the biggest mistakes in e-commerce is focusing only on the part price and ignoring everything else that affects how customers perceive value. Here are some other ways that customers evaluate value:
Shipping has a major impact on conversion
Customers don’t mentally separate “part price” and “shipping.”
Example:
A $20 part + $10 shipping often performs worse than a $30 part with free shipping
Even though the total cost is the same, customers perceive free shipping as a better value.
Multiple e-commerce studies (including Baymard Institute research) consistently show that unexpected or high shipping costs are one of the top reasons shoppers abandon carts.
Promotions protect margins better than permanent discounts
Instead of lowering prices across the board, many successful dealers use:
Free shipping thresholds
Limited-time promotions
Seasonal offers
Accessory bundles
These tools can improve conversion, create urgency around the right products, and preserve long-term pricing structure.
Permanent price reductions are hard to undo. Promotions give you flexibility.
Advertising supports pricing—not the other way around
Advertising helps bring qualified shoppers to your site. When paired with reasonable pricing and shipping, it reduces pressure to compete solely on price.
Even modest advertising investments can:
Increase visibility
Improve conversion
Support higher-value pricing strategies
Step 3: Use your data (not guesswork) to evaluate pricing
SimplePart provides reporting tools that show how customers interact with your site. These reports evaluate your own performance only so you're only seeing what's actionable.
Gross profit report (monthly)
Key metrics to watch:
Cart conversion rate (Views Cart)
Percentage of visitors who view items and add them to their cart
Healthy benchmark: ~8% or higher
Checkout conversion rate (C/R) (Places Order)
Percentage of visitors who complete a purchase
Healthy benchmark: ~1.25% or higher
How to interpret these metrics
-
High cart conversion but low checkout conversion
Customers like the parts and prices
Shipping or checkout costs may be stopping them
-
Low cart conversion
Customers may not be seeing enough value upfront
Pricing, shipping, or product presentation may need adjustment
These metrics help you focus on the real issue instead of guessing or overcorrecting.
Ranked performance and pricing matrix reports
These reports help dealers understand how their pricing structure performs within their program parameters (such as cost-plus or MSRP alignment).
They can help you:
Review performance by price bracket
Think differently about parts vs accessories
Identify where margins are strongest
Spot opportunities for free shipping strategies
Importantly, these reports focus on your structure and results, not aftermarket competitors'. Note that if you're not part of an OEM program, this report will not display any results.
Step 4: Review common pricing ranges
While every brand and region is different, many dealers fall into these general ranges:
Volume-focused strategies: Cost + ~16% to 25%
Balanced strategies: Cost + ~23% to 43%
These are reference points, not targets. Your staffing, shipping costs, and goals matter more than hitting a specific percentage.
Step 5: Accessories deserve their own pricing strategy
Accessories behave differently from repair parts:
Customers are more flexible on price
Presentation and bundling matter more
Free shipping can significantly improve conversion
SimplePart supports custom pricing sets, allowing you to:
Separate accessory pricing from standard parts
Adjust pricing without affecting core parts margins
Learn how to adjust pricing here.
Step 6: Make thoughtful, incremental changes
One slow week doesn’t mean your pricing is wrong.
Strong pricing strategies are:
Intentional
Data-informed
Adjusted gradually
You do not need to be the lowest-priced dealer to succeed online. Many high-performing dealers are not.
Step 7: Review and refine regularly
Pricing performance changes over time—not overnight.
Best practice is to:
Review reports every two weeks
Look for trends, not single-day changes
Adjust one lever at a time when possible
This approach leads to steady, sustainable improvement. If you're ready to supercharge your performance, it might be time to upgrade your services to include expert dealer coaching and advertising.
To see which package aligns best with your goals and request a demo, contact our Sales team. Unlock the full potential of your online parts business today!
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