Meniane said this initiative to deepen the company’s loyalty ecosystem is a key part of CarParts.com’s move “from defense to offense.”
CarParts.com officially launched CarParts+ Rewards on Oct. 13 after soft launching it in September, Meniane said.
The loyalty program includes two tiers, according to an Oct. 13 press release announcing its launch. The free tier, CarParts+, allows customers to earn a point for each dollar spent, including taxes and shipping, and later redeem them through an experience that is natively built into the checkout flow. The paid tier, CarParts+ Gold at $79 per year, offers 3x points, roadside assistance, free shipping on eligible parts, extended 60-day returns and VIP priority support, per the release.
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Since the soft launch in September, the program has enrolled 200,000 members, Meniane said during the call.
“Beyond enrollment, we are deepening customer engagement, increasing repeat purchases and growing customer lifetime value while improving the efficiency of our marketing investments over time,” Meniane said.
Meniane also highlighted CarParts.com’s new collaboration with Klarna. The company announced Tuesday (Oct. 27) that it added Klarna’s full suite of flexible payment options, including Pay in full, splitting a purchase into four interest-free payments with Pay in 4 and spreading the cost over time with Pay over time.
“It gives our customer greater payment flexibility, particularly when facing unexpected repair expenses, while also creating opportunities to improve conversion and average order value,” Meniane said during the call.
CarParts.com is also scaling its drop-ship business, while continuing to stock and maintain inventory in categories where it has a competitive advantage, Meniane said. The drop-ship model involves less working capital and less inventory risk, together with greater contribution margin dollars relative to capital deployed, he added.
“Drop-ship eliminates the carrying costs, the fulfillment overhead and the obsolescence risk that come with a traditional stock model,” Meniane said. “When you net all that out, the unit economics are compelling.”
Summarizing these new initiatives as part of CarParts.com’s focus on growth, Meniane said: “Through capital-light initiatives, a loyalty ecosystem and payment flexibility, each one deepens our customer relationships.”
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