Are you a car dealer looking to open up an auto parts shop? This is probably the best time to start down this road as the business is booming. The aftermarket automotive sector is anticipated to rise to $513.1 billion in 2027. According to McKinsey, its growth rate will be around 3% each year through 2030.
It is one of the world’s most important industries, alongside real estate and oil and gas mining. Simultaneously, there has been a significant shift towards internet aftermarket sales, especially as the worldwide epidemic continues. The aftermarket sector in the United States has seen a 30% increase in automotive eCommerce sales.
There are several things that you’ll need to take into consideration before selling auto parts and accessories. This article will provide you with a list of some of the most important things you’ll need to have to sell these items.
Registering Your Business
One of the first things that a dealership will need is a registration for their business. This can be done through the State you reside in. It will provide you with various benefits, such as opening a business bank account and applying for credit.
- Getting a Tax ID Number: Without a tax identification number, you won’t be able to pay any taxes, and your company will not be recognized. To acquire a federal tax ID at the IRS website, simply fill out a free application. It should take around two business days for your application to get approved.
- Registering with Local Authorities: This step is determined on whether you want to operate in your current State or a new one. Because various states and counties have multiple rules, double-check your obligations before beginning work. You’ll almost certainly be required to register your automobile spare parts business with the local government.
A Business Plan
A business plan is a key element to starting out and has everything you need to run your spare parts shop. This will include various things such as:
- How much money you’ll be needing for the start-up costs, including inventory
- Your short term goals
- The different strategies that you want to implement into your business
- How much revenue do you think can be made from selling car spares?
- What are some of the risks involved with running an auto part store?
Other important elements within this section would also include whether or not there’s any competition present locally, what kind of product(s) will be sold (brand names), a market analysis, etc. It may seem like a lot, but once it’s all finished up, it’ll be a comprehensive guide for your dealership. A business plan is important as most lenders also require it should you need any financing down the road.
Choosing a Niche
The next step is to choose a niche. This can be done by either selecting a type of car parts that you want to specialize in or a specific geographical area. For example, if you’re selling brake pads for Audi cars, your target market would be those who own Audi vehicles. If you’re located in the Midwest and only sell truck parts, your geographical location will determine what kind of customers you’ll attract.
It’s a good idea to focus on auto parts and accessories that are in high demand, especially if you’re starting out. This will allow your business to grow more easily and make it easier for customers to find what they are looking for on your website.
Some of the most popular categories within the automotive spare parts industry include:
- Automotive Lighting – Headlights, tail lights, etc.
- Car Electronics – Radios/stereos (AM-FM), GPS navigation system(s), remote starters, car alarms
- Wheels & Tires – Wheels with tire packages or tires by themselves; custom wheels can be very profitable since one wheel might cost anywhere from $25-$100+ depending on its quality and design
- Engine Parts – Oil filters, fan belts/alternators/AC compressors, spark plugs, etc.
- Exterior Parts – Fenders, hoods, side mirrors, window regulators/motor assemblies
- Interior Parts – Door handles/locks/armrests, seats (cloth or leather), carpeting, dashboard panels, headliners
- Brakes & Suspension – Brake pads/linings/caliper/wheel cylinders, springs, shock absorbers
- Body Parts – Door panels/panels for the entire vehicle (front and back), hoods
- Truck parts – This category can include various things such as aluminum wheels or chrome rims. It’s important to narrow your focus when determining what you want to sell, as it makes the process of acquiring inventory much easier.
When choosing a niche, it’s important to keep in mind that you want to offer a wide selection of products while still staying within your budget. It’s also crucial that you know about the products you’re selling. This will give customers the impression that you’re an expert in the automotive spare parts industry, and they’ll be more likely to trust your judgment.
Creating an Auto Part Website
Now that you’ve selected a niche and have everything in place for your business, it’s time to create an auto parts website. This is the online face of your company, and it’s where customers will go to learn more about the products you sell, read customer reviews, and make a purchase.
When creating a website, there are a few things that you’ll need to keep in mind:
- Your website should be easy to navigate – Customers shouldn’t have any trouble finding what they’re looking for on your site.
- It needs to look professional – This is the first impression that potential customers will have of your business, so make sure it looks good.
- The design should be consistent across all devices (PCs, laptops, smartphones, tablets) – No one wants a different layout when they visit your website from their phone than they do from their computer.
- You’ll also need to set up an eCommerce platform – This will allow customers to purchase products from your website.
- Your website needs a comprehensive auto parts catalog – This is where you’ll list all of the products you sell.
A Marketing Plan
Now that you have a website, it’s time to create a marketing plan. This is how you’ll reach your target market and let them know about the products that you sell. There are many different ways to market your business, but some of the most effective methods include:
- Online advertising (Google AdWords, Facebook Ads, etc.) – This is a great way to target customers who are already interested in automotive spare parts.
- Radio/television advertising – This can be expensive, but it can be very effective if done correctly.
- Direct mail campaigns – These can be costly, but they’re still one of the best ways to reach potential customers.
- Trade shows – Attendance at trade shows will help you build relationships with potential customers and distributors.
There are many other marketing methods you can use, but the ones listed above are a good place to start. Make sure that you tailor your marketing plan to fit your budget and target market.
Once your marketing plan is in place, it’s important to track its effectiveness so that you can make adjustments as needed. This will help ensure that your efforts are paying off and that you’re reaching your target market.
Joining eCommerce Marketplaces
One of the best ways to sell auto parts online is through a marketplace. There are several major eCommerce marketplaces that you can join, but some of the most popular include:
- Amazon – This is the largest online marketplace on the planet. It’s a great place to sell products that are related to automobiles, such as car parts, accessories, and tools.
- eBay Motors – Sellers have access to millions of potential customers on eBay Motors, and it’s easy to set up shop there as well.
- Walmart Marketplace – This is a great place to sell products related to automobiles, such as car parts, accessories, and tools.
Lastly, what you need to sell auto parts and accessories is fitment data. This is tremendously important because it will enable you to provide customers with the exact part they need for their car, motorcycle, or other vehicles. You can purchase fitment information from third-party vendors and use it on your website so that when a customer comes to buy parts, there’s no guesswork involved as far as which ones are correct for their vehicle(s).
Using this data, you can create detailed product descriptions for your website. This will help potential customers understand what each part does and how it’s used. Having all of the necessary components in place will help you succeed. Research your options, put together a solid business plan, and create a marketing plan to attract your target audience.
When you sell auto parts and accessories online, don’t forget about fitment data – This will help customers find the right items for their vehicles. For more information, feel free to contact us today!