Amazon.com, Inc. AMZN 1.87% and eBay Inc EBAY 1.29% are dominating the world of online auto sales.

DIY Auto Retail

In a new report on do-it-yourself (DIY) auto retail, Wedbush analyst Seth Basham discusses the secular headwind that Amazon and eBay have created for the “Big 4” traditional auto parts retailers, Advance Auto Parts, Inc. AAP 0.65%, Autozone, Inc. AZO 0.08%, Genuine Parts Company GPC 1.64% and O’Reilly Automotive Inc ORLY 2.04%.

According to Basham, the online DIY auto industry will continue to take roughly 0.75 percent market share annually for at least the next five years.

The New Big 4

EBay currently owns the biggest piece of the online pie with a 40 percent market share, while Amazon holds a 25 percent share. The “Big 4” hold a combined 20 percent share of the online market.

“With no major inflection, we see this as a manageable headwind for the Big 4 auto parts retailers (AAP, AZO, GPC, ORLY) that continue to take share from weaker competitors, particularly in the larger and more fragmented DIFM segment,” Basham explained.

Wedbush estimates…

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