Quote:
Originally Posted by BimmerNugget
I think one thing you guys don't consider is how THICKKKKK their profit margins are.
5 liter jug of Pentosin 5w30 is $42 at FCPEuro, but at RockAuto it's $25. I bet you wholesale cost is $15. Same goes for rotors, pads, etc.
FCPEuro is making a killing at $42 for Pentosin. If RockAuto can be profitable selling at $25 imagine how much FCPEuro is making?
Also FCPEuro only stocks 10% of the SKUs they have listed for sale. Another 10% of SKUs are drop shipped from their suppliers. The other 80% of SKUs are fulfilled using JIT (just in time). When you place an order at FCPEuro, they go out and buy the part from their supplier the same day, then ship it out to you.
Their business model works because a majority of auto parts suppliers are in the NY/NJ area. And most deliver parts the same day. This is also how small mom&pop auto parts stores operate. You order something at the auto parts store, they tell you to come pick it up 1 hour later when it's delivered to the store from the supplier.
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yes
a lot of vendors drop ship
yes, some items are priced significantly higher
but if you reasonably believe that you are going to get at least one replacement for a particular part then it becomes worth it