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A Look at the Platform Reshaping Estonia’s Auto Parts Industry

Sven Kimmel, owner of Demontering OÜ, explains how Ovoko has become the top platform for selling car parts in Estonia, thanks to its easy-to-use tools, affordable shipping, and strong marketing. He also shares his thoughts on bigger changes in the industry, such as the new EU End-of-Life Vehicle (ELV) Regulation, the increasing role of automation and AI, and a new project with insurance companies that could improve the reuse of car parts in Estonia.

 

A Look at the Platform Reshaping Estonia’s Auto Parts Industry p
Sven Kimmel

How a Niche Platform Became the Go-To Marketplace for Car Parts in Estonia

Ovoko has made the selling process much easier and more efficient. They handle postage, so sellers get a shipping label straight after a sale, and buyers automatically receive tracking information. Returns are free for buyers, and shipping rates are very competitive. Unlike eBay, Ovoko focuses only on car parts, which makes the platform more tailored to our needs.

We also offer helpful tools for sellers, like affordable cardboard boxes and a smart inventory system where you can take a photo of a part number, and it detects the part, vehicle, size, and weight. On top of that, we invest a lot in marketing and keep improving the user experience, which helps boost sales further.

Hope for Change: Why the New EU ELV Regulation Matters

I’m optimistic about the new EU End-of-Life Vehicle (ELV) Regulation because, to be honest, the current directive hasn’t worked that well. It’s been more or less a failure, especially when it comes to dealing with illegal operators and poor enforcement in countries like Estonia. Things can only improve from here, and I welcome any change that brings more order and fairness to the industry.

Why Many in Estonia Doubt the New ELV Rules Will Make a Difference

Honestly, there isn’t much frustration here in Estonia about how long the new regulation is taking. Most of us have gotten used to the current situation. Many operators are small and have adapted to problems like illegal dismantling, scrap companies taking our vehicles, illegal exports of ELVs, and the car registry deleting cars without proper checks. We’ve been dealing with this for so long that there’s a general feeling that the new rules might not actually fix much, so people aren’t getting their hopes up.

Embracing Automation: Why Digital Tools Are the Future of My Business

I see huge potential in automation and digital tools because our work still involves far too much manual labour. Anything that helps streamline tasks, whether it’s handling phone calls, pricing, creating pick lists, bidding in auctions, or running competitor checks, it’s a big win. Smart shipping solutions have already made a difference, and I believe AI tools like sales bots or web assistants could soon become a valuable part of how we operate. The more we can automate, the more efficient and competitive we become.

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Finding Common Ground: Why Cooperation with Insurance Companies Is Key

One of the biggest challenges in promoting reuse over recycling is working with insurance companies. If we want real progress, we need to find common ground with them. Right now, there’s often a disconnect between what we can offer and what they’re willing to support. Better cooperation would make it easier to reuse more parts, especially larger ones that are harder to store and move. Practical solutions won’t come from regulation alone; they’ll come from building stronger partnerships across the industry.

A Closed-Loop Future: Partnering with Insurance Companies to Boost Reuse

We’re actually working on a project with insurance companies here in Estonia that could really change things. The idea is simple but powerful, they would sell all total loss vehicles directly to members of our dismantlers’ association, and in return, buy back all the usable body panels from us. Estonia is a small market, so we’re talking about 2,000 to 3,000 cars a year, but even that could breathe new life into the industry. It would create a true closed-loop system and make reuse a much more practical and profitable option.

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