eBay is one of the largest online marketplaces in the world. There are over 182 million active buyers across the globe. In 2019 alone, this online platform saw a net revenue of an astounding $10.8 billion.
There is no doubt that eBay is an excellent option for online businesses of any kind. The site has a wide range of items for sale, and it’s easy to find something you’re looking for.
The same is true for automotive and power sports parts – including ATV parts, snowmobile parts, and motorcycle parts. The selection on eBay Motors is generally better than what you’ll find at your local retailer for the same price or less!
If you’re considering an eBay dealership, this post will give you some helpful advice on getting started.
Why choose eBay?
Aside from the already mentioned facts, eBay is the perfect online platform for auto parts businesses for a variety of reasons:
- The site is easy to navigate.
- The customer base is worldwide.
- You have almost complete control over the prices of your items.
- The site is 100% secure and safe.
- The company offers a variety of advertising opportunities, which can be expensive on other sites or social media channels.
According to its statistics from 2019, three parts or accessories are sold every second on this online marketplace. Every minute, fifteen motorcycle and eight ATV parts are purchased by someone.
All of these benefits make eBay a great choice for any auto parts business owner.
Before you dive headfirst into the powersports industry, you first need to examine the market. What is the size of it, what are the trends, and what are the best-selling products?
There is no shortage of items on eBay classified under “powersports”. The global powersports market will be valued at $12.75 billion by the year 2027. It may not be as big as the automotive industry, but it is still very profitable.
It’s easy to see why this market is so lucrative – it has a younger demographic than the automotive industry, and powersports parts can be expensive.
If we take a look at market segmentation by vehicle type, we get the following categories, ranging from the fastest-growing:
- Light, less expensive, fuel-efficient motorcycles
- PWC (Personal watercraft)
- Side-by-side vehicles
As far as heavy motorcycles go, consumer preference has shifted in the past couple of years. The demand for heavy bikes is on the decline, while fuel-efficient motorcycles are trending upwards. Younger buyers are more likely to purchase these types of motorcycles.
Starting Your Powersports Parts eBay Store
Once you decide you want to start an eBay powersports dealership, you need to make some decisions. The first is a series of decisions that you will need to write into your business plan.
You cannot hope to develop a thriving store without a detailed, well-thought-out business plan. The business plan outlines the goals and objectives of a company and how it will operate. The document should be organized with headers for each section – like “Goals” and “Objectives.”
Here are the segments you need to consider for your business plan:
- The product or service you will provide
- The market for your products or services
- The key features and benefits of your products or services
- The selling price of your products or services (and how it relates to the competition)
- The advertising strategy you plan on implementing, including social media networks, online ads, etc.
- The competitive landscape – who are your competitors, what do they offer that you don’t?
- The cost of starting and operating the business (including an estimate for how many employees will be needed)
It’s also a good idea to include information about the future direction of your company. The idea is to write down your goals for what you want your company to look like in five years.
Remember that your business plan does not have to be final. The document can be revised as your business evolves. The important thing is to keep it up-to-date and accessible for quick reference when you need it most – like if a potential buyer asks about something in particular or if someone from the government comes knocking on your door with questions.
Inventory or Dropshipping
Online auto stores on platforms such as Amazon and eBay can choose between keeping stock in their own warehouse or using a dropshipping service. The decision is important because it has implications for your business, from the time and effort required to track inventory levels to how much money you spend on packaging materials.
Dropshipping was initially designed as an easy way of selling items without having them stocked at home. You can sell items without worrying about storage space or shipping costs – all of these aspects are taken care of by the supplier.
But dropshipping does have its drawbacks. The risk is higher than with inventory because the online seller has no idea whether they will ever receive an order. Some companies also may not offer the option of returns or exchanges.
Inventory, on the other hand, requires storage space and tracking on the seller’s end. The benefit is that you have a higher chance of offering customers refunds or exchanges if they are not satisfied with their purchase. The downside is that you will need more money for warehouse space and storage materials like boxes, bubble wrap, and packing tape – as well as extra staffing to manage inventory levels.
Which option works for you depends on a range of factors, including the availability of warehouse space and your marketing strategy. The decision is often made by weighing the upfront costs against estimated future revenue from sales – as well as how comfortable you are with handling logistics.
Registering the Business
Even if you decide on dropshipping and not keeping an actual inventory, you need to register your business. The process for doing this will vary depending on the state where you live, but there are some general things to keep in mind:
- The name of your company or store should be memorable. It should also be unique – you don’t want it shared with another company in a different industry.
- The logo for your company should represent what you sell – not too complicated, though! The logo should catch people’s attention and get them interested in your products.
- The type of business you register is determined by the nature of your product or service. The most common types are sole proprietorship, partnership, corporation, and nonprofit organization. However, this will be different in each country, so it’s essential to research the process before starting.
- The registration process will likely require a range of documents, so be prepared to provide various information about your company and its products. The more upfront work you do, the easier it will be to navigate this step.
Parts to Focus On
A major decision will be what type of powersports parts you’re going to sell. The cost of the item will play a role in determining how much profit you can make from it. The more expensive an item is, the higher your profit margins are likely to be – but that also means fewer people want them!
The best advice for increasing online sales on eBay is to find a niche and stick with it. For example, if there is a specific type of powersport that you specialize in, it makes sense to focus on those parts. The more time and effort you put into figuring out the best items for your store, the easier it will be to boost sales.
The market is constantly changing – so keep up with developments by researching which products are popular right now.
Parts with High Turnover
Parts that need to be replaced regularly are almost universally the most sought-after in the Automotive & Powersports eBay category. Consider offering a large variety of these parts in your store, and you’ll have an easier time attracting customers. The following list of the top five most popular powersports part categories can help you get started:
- Drive belts
- Tires and wheels
- Fuel hoses
- Bearings, seals, gaskets
- Throttle and cables
Those are just a few examples – but they give you a sense of the types of parts that have high turnover. The more often they need to be replaced, the better your chances are for increasing sales and making money!
Another category that is popular among powersports enthusiasts is riding gear. The prices can vary depending on the make and model, but it’s still important to stock a wide range of products to not miss out on any potential sales opportunities. Here is an overview of the most popular riding gear for powersports enthusiasts:
- Motorcycle helmets (and other head protection gear)
- Eye Protection
- Clothing (jacket, pants)
It’s important to ensure that all of these products are easy for customers to find in your store. The more time you put into categorizing and organizing your products, the better off you’ll be in terms of sales!
You’ve set up your business; you have a niche; your sales are doing okay. But they could be better. Selling on eBay requires a lot of ongoing work – an auto parts seller cannot just sit back and hope for the best. Here are a few techniques you can use to increase sales for eBay powersports parts.
Your listings are your company’s calling card. The more attractive they are, the easier it will be to draw in customers and convince them to buy from you instead of someone else. The following list has some suggestions for improving your listings:
- Product description needs to be detailed and informative, but it shouldn’t go on forever or include any unnecessary information. Don’t forget about accurate and complete fitment data – auto enthusiasts perform extensive fitment searches before they land on a part that works for them.
- The title should be catchy and descriptive. The more people that notice it, the better your chances are for getting a sale.
- The images in your auto parts catalog need to showcase the product as well as possible with a variety of angles (front, back, left). The pictures need to accurately represent the part. Avoid using stock images or screenshots of websites that are in a different language than your listing’s store page.
- Video clips are a great way to communicate the product’s features and benefits. The more information you provide, the better your chances of converting shoppers into buyers!
- Including relevant keywords in your listing will help you rank better in search engines and get more traffic from customers looking for specific parts.
- Do your best to become an Above Standard or Top Rated seller. With that status, you gain access to promoted listings which boost product visibility by up to 36%!
Include More Shipping Options
Free shipping has become a customer expectation in the e-commerce world, but it can quickly eat into your profits. Here are some possible ways to handle this problem:
- Offer free shipping on orders over a certain amount.
- Charge less for shipping than what you pay (this is called “variable pricing”).
- Have an auto tip feature where customers can add a tip to their order, and it will be automatically added to the bill.
- The more items you’re selling, the better your chances of offering free or reduced shipping. The cost per item drops as you increase quantity!
Fast shipping (speedy delivery) is also a great way to increase sales. The following list offers some tips for shipping effectively:
- Use a reliable carrier that has competitive rates and delivers on time. Ask other sellers about their experiences with companies before you sign up!
- Packing materials should be appropriate for the item(s) being shipped, as well as cost-effective (don’t use expensive materials for cheap items). The contents should be secure and well protected.
- Be sure to set up automatic notifications that will notify you when your shipment is on the way. The sooner it arrives, the sooner customers will be able to enjoy their purchase and hopefully make a repeat order!
- Always include tracking information so that buyers can follow along with shipping progress. The more information they have about where their package is at all times, the less likely they are to become anxious.
- Always respond quickly to messages from buyers! The fastest way for you to increase your sales is by building a rapport with them (letting them know they’re important). The more they know you value their business, and the more you improve the buyer experience, the better!
Invest in Marketing
Lastly, you should spread the word about your store to potential customers and create a loyal customer base. You can leverage these major marketing strategies to promote your business:
- Social media. The leading platforms are Facebook and Instagram, though you can also experiment with Twitter and even TikTok! The more followers you have, the better chance your posts will get seen by new people (and potential customers). When choosing the right social media platform and strategy, keep in mind your business niche and individual strengths. The more you post, the better your chance of increasing traffic to your store!
- Email marketing. This is also a good option for generating sales and reaching out to potential customers. The best way to do it is by sending emails that contain helpful information related to your niche product category. The content should be informative yet entertaining and relevant to your followers’ interests. A highly personalized message will resonate with the readers. Fortunately, eBay offers email marketing tools that you can use for your business.
- SEO (search engine optimization). The whole goal is for people who are looking for a product like yours to find it quickly when they search online. Add keywords to each listing so that buyers can quickly locate the part they want (and hopefully buy it!). To know which keywords to add, check out your competition and see what keywords they’re using for their listings.
Starting a powersports and automotive products business on eBay requires a lot of hard work. You need to make a business plan, decide on inventory type, register your business, and open an eBay Seller Account.
By looking at the best-selling powersports products on eBay, you can find your niche and promote that product to potential customers.
The best way for eBay powersports dealerships to generate sales is by providing personalized customer service (responding quickly), marketing their business via social media or email, and investing in SEO.
The most important thing is to make sure you stay on top of all your inventory and shipping needs so that customers are happy with their purchases from start to finish. With these tips in mind for starting a business on eBay, hopefully, it will be an easy process for you!
If you’d like some assistance in organizing your fitment data for eBay, please contact MyFitment. Our software support will save you time and effort when it comes to data organization. That way, you can invest your energy into what you do best!