There are a few things you need to do in order to start selling car parts online. An online motor vehicle dealer looking to sell their products across various eCommerce marketplaces must consider several things before launching their business. For starters, automotive aftermarket retailers need to obtain a business license and the proper insurance for their online stores.
Online retailers need to have all the necessary documentation to ensure customers are buying from a legitimate source. This includes trademarks and other legal documents establishing the retailer’s business in the United States. Online sellers also need to obtain the appropriate licenses for platforms like Amazon and eBay Motors before listing their products on these marketplaces.
By taking care of all these details upfront, online retailers can avoid any legal issues down the road and focus on growing their business. And with the right licensing in place, selling car parts online can be a very lucrative endeavor.
What Licensing Does An Auto Parts Business Need?
In most countries throughout the world, you must have certain basic insurance coverage requirements necessary by the industry you want to operate in. As a result, it’s critical to make insurance plans and seek expert advice regarding which insurance policies are appropriate for your vehicle accessories and automobile spare parts store.
Here are some of the essential insurance policies to consider if you want to open an auto parts business and sell car parts online in the United States:
- General insurance
- Health insurance
- Liability insurance
- Workers Compensation
- Payment protection insurance
- Overhead expense disability insurance
- Business owner’s policy group insurance
Depending on the type of business you’re looking to set up, you may not require all of the insurance as mentioned above. Normally, you may not need to file for intellectual property protection/trademark if you consider starting your own automobile accessories and auto spare parts store business. This is the case because the business’s nature allows you to efficiently operate it without having to take legal action against anyone who illegally exploits your company’s intellectual properties.
The Necessary Professional Certification and Other Legal Documents
There is no need for prior expertise or licensing to begin a car accessories and auto spare parts store. All you need are informal training sessions on the ins and outs of car accessories and automobile spare parts purchasing and selling. However, if you discover any certification that may help you run your automobile accessories and auto spare parts store, do absolutely everything inside your power to obtain it. The more knowledge you have about the industry, the more likely you will succeed in it.
In the United States, all online retailers must comply with the Federal Trade Commission’s 16 CFR Part 255: Guides Concerning the Use of Endorsements and Testimonials in Advertising, which states that material connections between advertisers and endorsers need to be disclosed. This rule applies regardless of whether the relationship is financial, familial, or otherwise. If you fail to comply with this regulation and are caught, you could face harsh penalties.
It’s also important to obtain any licenses and permits that may be required to operate your online store legally. Depending on the state or city your business is located in, the requirements for obtaining a business license can vary. However, the process is generally not too complicated and can be completed online in minutes.
The following are some of the most important legal documents you’ll need to start a legal automobile accessories and auto spare parts store in the United States of America:
- Certificate of Incorporation
- Business License
- Federal Tax ID / Tax Identification Number
- Business Plan
- Employee Handbook
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Non – disclosure Agreement
- Copy of license for the service support facility and/or a recent inspection report
- Company Bylaws
- Memorandum of Understanding (MoU)
- Building License
- Insurance Policy
- Franchise or Trademark License (optional)
eCommerce Marketplaces Rules and Regulations for Car Part Dealerships
Selling car parts and accessories online can be a great way to earn extra money or even start a full-fledged business. But before you start listing items for sale, it’s important to understand the marketplace rules and regulations as well as the licensing needed to sell car parts online.
There are two main types of online marketplaces where you can sell car parts: Amazon and eBay Motors. Both platforms have different requirements when it comes to licensing, so let’s take a closer look at each one.
To start selling on Amazon, you’ll need to create an account on Seller Central and sign up for the Professional selling plan. Automotive & Powersports is a locked category, so only Professional Sellers can sell items in it.
As a Professional Seller, you can list automobile parts to sell in more than 30 categories, which is more than if you were an Individual Seller. You may offer an infinite number of items for sale under the Professional plan. While there is no registration fee, a $39.99 yearly subscription is still necessary to use this service. When you’ve created your Amazon account, the Auto Parts & Auto Accessories category will be available to you.
Verify that all of the items you want to sell are legal in your region, state, federal, and worldwide laws and regulations. Amazon also has some product picture guidelines to help you boost online sales. The greater quality of your photos, the more potential consumers you will attract.
To sell automobile parts, tools, equipment, and accessories on Amazon, you must first receive permission. To be considered for selling automobile and Powersports products as a Professional seller on the Professional selling plan, your account should be in good standing. However, if you’re not already a Professional Seller on the eCommerce platform, Amazon may also evaluate your car parts website.
To sell automobile parts and accessories on Amazon, you must meet the following criteria:
- Be on the professional selling plan.
- Have images that are both correct and compliant.
- List all major brands and their associated product codes (UPCs) in one list.
- All certified refurbished Automotive & Powersports goods should be warranted by the original equipment manufacturer or re-manufacturer.
- Look up the Automotive & Powersports Part Finder and Fitment Data page.
To apply for Amazon’s approval, fill out the Contact Us form. You should receive a response via email in three business days to let you know whether you’ve been accepted or if more information is required. As the primary category, Amazon online stores are automatically pre-populated with Auto Parts & Accessories.
eBay Motors Regulations
Opening a dealership on eBay might be an excellent source of income. One of the most popular online shopping sites in recent years is eBay Motors, which makes it an ideal place for this sort of enterprise. On eBay Motors, you’ll find a wide range of replacement parts and accessories that may help you build your brand.
You may open your own eBay replacement brand automobile parts business with little effort by following the guidelines below:
- Check that all items are correctly linked to their fitment compatibility data.
- Only choose products from well-known businesses (i.e., those established for at least two years).
- Before posting any products, create an account and enter your vehicle models, so buyers know what they’re searching for.
- Listings should always be a competitive eBay price, with at least $0.01 auctions.
- OEM or aftermarket products should be listed in product descriptions. Compatibility data and whether they’re OEM or aftermarket components should also be included.
- Make the most of eBay features like eBay Deals, “Similar Items” on eBay Motors listings, and “View All Listings.” This will help you differentiate your items from those of other vendors.
- If there is a lot of interest in your products, set up an automated procedure for renewal listings that make automatic layaway payments so you can be sure to keep some inventory available at all times if there’s a rush.
To begin, you’ll need to set up an account on eBay Motors and list your components and add-ons. To get started, search for Parts & Add-Ons in the Categories section of eBay. These categories will become more particular as you progress. However, as an online auto parts retailer, manually listing all of your inventory may be time-consuming.
The good news is that the eBay Seller Hub makes it easier to create and manage your listing. It will be simpler for you to locate compatible parts thanks to accessing vehicle fitment data through the eBay Motors Parts Compatibility site. You may either manually input compatible vehicles or utilize the pre-populated compatibility option. If your part is already in eBay’s database, a lot of its information will be filled in automatically.
Together with myFitment, you will be able to manage your inventory through multi-channel listing software. This will enable you to take advantage of online marketplaces like Amazon, eBay, and Walmart for increased sales. You can also use myFitment to monitor your online reputation, track your traffic analytics, and boost customer satisfaction with features like automated order management.
myFitment is an excellent solution for online retailers looking for a time-saving way to list their products on multiple channels. With myFitment, you’ll have access to powerful tools to help you run your business more efficiently. Contact us today to learn more about how we can help you grow your online auto parts business!