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Monday, 02 August 2021 22:21

The Rise of Amazon and How It Impacts the Collision Repair Industry

Written by David Roberts and Raul Salinas, Focus Advisors Automotive
The Rise of Amazon and How It Impacts the Collision Repair Industry Amazon

Index

...use their own fleet of commercial vans as long as they meet Amazon’s key criteria. Otherwise, most DSPs resort to renting vans from Amazon’s third-party lease partners.


How Collision Repairers Play a Role


The rising prevalence of privately owned DSPs has direct implications to trends in the collision repair industry. It’s a simple equation: increased use of commercial vans equals increased collision repair and maintenance.

 

This trend is not only implied, but something we have observed from our clients across the U.S. For some of them, Amazon DSP repairs represent one of the fastest growing segments of their business.


To adopt a similar market strategy and capitalize on this growing small fleet segment, shop owners should first identify whether their shop is reasonably near an Amazon distribution center. If a collision repair shop owner operates in a highly populated Metropolitan Statistical Area (MSA), especially one that is growing rapidly, chances are that there is an Amazon distribution center nearby.

 

Even if a shop owner does not operate in a top MSA, they can still take advantage of this market opportunity by identifying smaller delivery stations that are used for last-mile deliveries. Currently, Amazon is in the process of investing more resources in efforts to expand its network of delivery stations across the US.

 

The Need for Speed


Downtime costs money for DSP operators. A DSP driver is expected to make more than 30 stops per hour. As a result, drivers work in an expeditious manner that can ultimately cause more wear on the vehicle.

 

Coupled with high mileage rates---and numerous opportunities to incur damage navigating tight spaces, streets and turnarounds---DSPs find their vehicles needing frequent repairs.


The speed of repairs is a vitally important variable to...