Inside Honda’s plans for Amazon power equipment sales

American Honda Motor has launched a U.S. Amazon storefront for Honda Power Equipment products.

The storefront features select Honda generators and lawn mowers, with additional products planned, Honda said in an Aug. 4 release. Honda Power Equipment dealers fulfill orders placed through the storefront, with Amazon selecting the seller for each transaction through its marketplace process, including its Buy Box algorithm.

The Alpharetta, Ga.-based OEM collaborated with Amazon to give consumers another way to find its products online while continuing to involve its authorized dealer network, according to the release.

Honda joins other outdoor power equipment (OPE) OEMs such as Greenworks, Worx and Yardmax with dedicated Amazon storefronts.

Dealer participation optional

Honda does not assign Amazon orders to dealers, and dealers participate in the marketplace voluntarily as independent retailers, the company told Auto Finance News, a sister publication of Equipment Finance News.

Participating dealers set retail prices and manage inventory for the products they offer through Amazon, the company said. The dealers also handle order fulfillment responsibilities.

Honda is not involved in allocating sales revenue, Amazon fees or fulfillment costs for dealer transactions through the storefront, instead leaving those matters to Amazon and participating dealers, the company said.

As a result, financing and installment payment options will vary by seller and according to payment options available through Amazon or the dealer, the company said. Some dealers may offer financing, but availability can differ based on the product, seller and transaction.

OPE dealer revenue declines in June

Industrywide, revenue among 1,193 OPE dealers totaled $292 million in June, down 3% year over year, according to Constellation Dealer Insights’ OPE Market Update released July 16. The report’s revenue figures combine parts sales across all departments, whole-good sales and service repairs.

Revenue increased 3% YoY in the Northeast and 1% YoY in the Midwest but decreased 7% YoY in the South and 9% YoY in the West, according to the report.

While the OPE market experienced a slight decline in revenue during June, Honda expects that the placement of its products on the Amazon storefront will spur growth by making products available where customers want to shop, the company told AFN.

Honda declined to disclose its customer- and transaction-data arrangements.

Honda Powersports and Products markets generators, lawn mowers, pumps, snow blowers, tillers, string trimmers, marine engines and general-purpose engines, according to the release. American Honda also distributes motorcycles, scooters, all-terrain vehicles and side-by-sides through independent authorized dealers.

Check out our exclusive industry data here.