In 2010, the automotive aftermarket was shifting. Consumers were moving online, searching for convenience and accuracy in finding the parts they needed. At the same time, manufacturers faced rising costs. Another challenge was balancing traditional dealer networks with direct online sales.

For Borgeson, a respected name in steering components, the time had come to enter the digital race. How could they do this without disrupting their relationships with dealers and distributors?

This is the story of how Borgeson entered the online market and thrived (despite selling their products at prices higher than their own dealers!).

The Market Shift: Why eCommerce Became Essential

By 2010, online auto parts sales were growing, with annual increases reaching 100% at peak. Later, the COVID-19 pandemic, global inflation, and supply chain challenges reshaped the industry. With fewer cars rolling off assembly lines and budgets tightening, people held onto their older vehicles. This led to increased demand for repairs instead of new purchases.

Drivers kept their vehicles longer, with the average age of U.S. cars reaching an all-time high of 12.2 years in 2022. For the aftermarket, this was both a blessing and a challenge. On one hand, aging vehicles meant more business for repair shops and parts manufacturers. On the other hand, it introduced new hurdles.

Customer expectations skyrocketed. They wanted faster delivery, user-friendly websites, and accurate tools to find the perfect part. Price pressures from rising material costs squeezed profit margins. And as more brands shifted online, they faced a tricky balancing act: growing online without sidelining traditional dealers and distributors.

Borgeson, a leading steering component manufacturer, exemplified this shift’s challenges and opportunities. Known for precision and quality, Borgeson operates in a space where finding the exact part is non-negotiable. The company faced these main challenges:

1. Building a manufacturer website to serve both the dealer network and retail customers was key. 
2. Dealers needed to quickly access product details and get confidence in the products they offer.
3. Customers increasingly relied on online tools to identify the perfect fit. A single mismatch could derail trust and sales.
4. With material costs climbing, Borgeson had to raise prices, risking friction with dealers and customers.
5. Selling online meant competing with the same dealers and distributors that were central to their success.

To overcome these, Borgeson decided to prioritize an online presence that delivered more than just products. They focused on tools to help customers find the parts needed to reduce errors and returns. Their platform also supported their traditional dealer network by driving inquiries their way.

These efforts reflect a broader industry trend. By 2023, over 57% of millennial customers preferred buying auto parts online, valuing convenience and speed. Borgeson’s urge to meet these expectations led the company to consider X-Cart Automotive to thrive in a changing market picture.

How Borgeson Found X-Cart

Borgeson needed a solution that could do it all: 

• build a user-friendly online store;
• offer advanced tools to help customers find the right products;
• and work smoothly with their multi-level distribution setup.

They chose X-Cart, an eCommerce platform tailored to complex industries like theirs. Here’s what made it stand out:

• Precision tools. X-Cart’s Year/Make/Model and VIN search features allowed customers to find parts that fit their vehicles perfectly quickly.
• User-friendly design. Borgeson’s team, led by a self-taught webmaster, could easily manage the platform without needing IT specialists.
• CloudSearch filters. The smart filtering tools made it even simpler for buyers to find what they needed.

Scalability. The platform could handle the unique challenges of working with dealers and distributors.

The Results: More Than Just Sales

Borgeson’s eCommerce site now accounts for 10% of their total revenue. It’s an impressive figure, especially considering their online prices are 10% higher than those of their dealers. Customers continue to buy directly from the site, drawn by its ease of use and precise product recommendations.

Beyond sales, the website has become a critical resource for Borgeson’s customers. Tools like the Year/Make/Model search reduce errors and returns, saving both time and money.

Plus, X-Cart provides excellent product discovery on Google with outstanding SEO capabilities. Both dealers and retail customers get the information they need.

Customer Perspective

Jeff Grantmeyer from Borgeson Universal Company says:

“From my experience with X-Cart, it’s all about exceptional service. As someone managing our company’s IT and website, I can confidently say their customer support is unparalleled. My suggestions are always heard, considered, and often implemented in future updates. Switching to X-Cart 14 years ago was one of the best decisions I’ve made!”

“With X-Cart’s SEO and intuitive design, the days of relying on press releases to announce new products are over. Google recognizes new products on our site within weeks, far faster than traditional print PR.”

Could This Be Your Turning Point?

Borgeson’s move online was about sales and a smarter, more customer-focused approach. By choosing X-Cart, they could navigate the challenges of eCommerce with a platform that fit their needs and supported their growth.

For companies like Borgeson, this journey proves one thing. With the right tools and strategy, it’s possible to thrive, even in tough competition and complex market demands. If your business faces similar hurdles, perhaps it’s time to explore how X-Cart solutions can reshape your trajectory.