Amazon could see a dramatic expansion in its automotive supply business after reaching agreements with top manufacturers in recent months.

The New York Post, citing unnamed sources, reported over the weekend that the e-retail giant secured deals with some of the nation's largest auto parts makers, including Cardone Industries, Dorman Products, Federal-Mogul and Robert Bosch.

The report suggested that top auto supply retailers, such as O’Reilly, Advance, AutoZone and Genuine, benefitted from their current relationships with suppliers — but that the dynamic could be overhauled by Amazon.

The e-commerce giant is reportedly paying a premium for parts while selling them, on average, at cheaper prices.

Manufacturers also likely aren't enthusiastic about helping the retail chains, who increasingly rely on private-label parts largely produced overseas.

The do-it-yourself auto parts business is a $50 billion market, and one Wall Street projection suggested that Amazon could see its share of that business expand to $5 billion this year — an increase of more than 50 percent.

By: DocMemory
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