carparts.com

Overview

CarParts.com, Inc. is a U.S.-based e-commerce company specializing in automotive aftermarket parts and accessories. It describes itself as a “technology-driven eCommerce company improving the way drivers shop for the parts they need.” (CarParts) The company has been operating for over 25 years and offers more than one million products across vehicle makes and models. (CarParts)

Headquartered in Torrance, California, CarParts.com serves consumers across the U.S. via its website and mobile app, focusing on direct-to-consumer online sales of replacement, maintenance, collision and accessory parts. (CarParts)

Business Model

Value Proposition

  • The company emphasizes competitive pricing by cutting out many brick-and-mortar supply chain steps, thanks to its “factory-to-consumer” distribution network. (CarParts)

  • Wide selection: catalog of over 1 million SKUs including replacement parts, performance upgrades, accessories, collision repair parts. (CarParts)

  • Technology and user-experience focus: mobile-friendly website, vehicle fitment selector, streamlined checkout. (CarParts)

Operations & Supply Chain

  • CarParts.com owns and operates its distribution centers; at least one large semi-automated facility in Las Vegas, Nevada, supports its logistics. (CarParts)

  • With multiple fulfillment centers, the company is able to cover rapid delivery for much of the U.S. market. (CarParts)

  • Inventory management and order fulfilment are key operational pillars—minimizing overstock, matching parts to vehicles, and maintaining efficient shipping. (AI DCF Templates)

Revenue Streams & Monetization

  • Primary revenue is online sales of parts and accessories to consumers (DIY users) and also some professionals/installers. (AI DCF Templates)

  • They also promote private-label brands and may bundle or kit parts (via partnerships) to increase value. (CarParts)

  • Marketing channels include SEO, paid advertising, mobile app, content marketing around the vehicle parts purchase process. (PitchGrade)

Financial & Strategic Highlights

  • In its Q3 2025 earnings, CarParts.com reported net sales of about $127.8 million and a gross margin of ~33.1%. (CarParts)

  • From Q2 2025: revenue up ~5 % year-over-year (to ~$151.9 million) though the company still reported net losses (e.g., EPS roughly –$0.23). (Investing.com)

  • In September 2025 CarParts.com secured a strategic investment of about $35.7 million from partners including ZongTeng Group, A‑Premium and CDH Investments. (CarParts)

  • The company is targeting being free-cash-flow positive by 2026. (CarParts)

Strengths, Weaknesses & Market Context

Strengths

  • Broad product catalogue and direct-to-consumer model gives access to many vehicle types and aftermarket needs.

  • Technology and logistics infrastructure allow for competitive pricing and potentially faster delivery.

  • Strategic investment and partnerships strengthen supply and sourcing capabilities.

Weaknesses

  • Despite growth, the company is still operating with net losses; profitability remains a challenge.

  • Customer service, quality control and parts fitment issues are cited in reviews as pain points. (AliDrop)

  • Heavy reliance on e-commerce means macro factors (shipping, inflation, supply chain disruptions) can hit harder.

Market & Competitive Landscape

  • The U.S. automotive aftermarket is large (hundreds of billions USD); CarParts.com competes with brick-and-mortar chains (e.g., AutoZone, Inc., O’Reilly Automotive, Inc.) and pure-play online retailers (e.g., RockAuto LLC). (PitchGrade)

  • Recent industry trends: Cars on the road are getting older, meaning more need for replacement parts rather than new car sales. (The Drive)

  • Challenges: Parts deflation (prices dropping), economic slowdowns reducing discretionary spending on upgrades/accessories, shipping cost pressures. (The Wall Street Journal)

Strategic Priorities & Outlook

  • CarParts.com is trying to scale its B2B/pro-installer channel in addition to DIY consumers. (Investing.com)

  • Expand product assortment via partnerships and deeper sourcing: e.g., partnership with A-Premium adds ~150,000 SKUs. (CarParts)

  • Improve operational efficiency: warehouse automation, closer fulfillment to customers, reduce last-mile costs. (CarParts)

  • Focus on margin improvement, variable cost control and ultimately turning free cash flow positive (target for 2026). (CarParts)

Customer Experience & Reputation

  • Many customers praise the wide selection and competitive pricing. (AliDrop)

  • Criticisms include: wrong parts shipped (fitment problems), slower shipping than expected, customer service delays. (AliDrop)

  • The company offers a “Price Match Guarantee” and a lifetime replacement guarantee on many parts. (CarParts)

  • Implication: If you shop there, it’s wise to double-check compatibility (make/model/year), review return policy, and consider shipping timelines.

Key Takeaways

  • CarParts.com is a major online-only player in the auto-parts aftermarket, leveraging technology, warehousing and a broad catalogue to challenge more traditional players.

  • The business model is sound in principle: direct-to-consumer, logistics-led, large inventory, tech-enabled.

  • But the company faces real headwinds: profitability is not yet achieved, quality control and customer experience have room for improvement, and the macroeconomic/industry environment is tougher than in past years.

  • Strategic investments and improvements in efficiency are promising, but execution will matter a lot in the next 1-3 years.

  • For consumers: CarParts.com offers good parts-selection and pricing potential, but you should shop carefully (fitment, returns, shipping).

FAQ

Q: Is CarParts.com legit?
Yes — it is a public company operating in the U.S., with a long track record (over 25 years) and a substantial product catalogue. But like many online retailers of automotive parts, customer experience can vary depending on part fitment, shipping, and support. (AliDrop)

Q: What kinds of parts can I buy from CarParts.com?
A wide range: replacement parts (brakes, engines, filters), performance parts (upgrades for speed or handling), accessory parts (floor mats, lighting), collision repair parts (bumpers, fenders). (AI DCF Templates)

Q: How do they ship and what’s the delivery like?
CarParts.com owns/operates a national distribution-centre network, including a semi-automated facility in Las Vegas, to speed delivery and reduce last-mile costs. (CarParts) However, shipping times may vary depending on inventory location and fitment verification.

Q: What’s the outlook for CarParts.com?
The company is aiming to become free cash flow positive by 2026. Its key focus areas are product expansion, margin improvement, efficiency gains and scaling both consumer and installer/pro channels. (CarParts)

Q: What should I watch out for when ordering from them?
Ensure correct vehicle make/model/year when selecting parts to avoid compatibility issues. Review return/fitment policies. Be aware that customer reviews raise concerns about response times for support and returns. (AliDrop)

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