Whether you are in search of new business opportunities or a seasoned auto parts seller looking to expand your business, you’ve come to the right place. In this guide, we’ll break the broad question of how to sell auto parts online down into eleven specific know-whats and know-hows to guide you through the whole process of building an automotive eCommerce business.
Without much further ado, let’s dive in.
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1. Know your market: How to choose the right niche
When choosing your niche, you should do diligent market research in order to figure out the demand, define the margins you can afford, manufacturer prices, calculate the cost of shipping and fulfillment, estimate logistics issues, etc.
Don’t skip this step even if you have been in the automotive eCommerce for a long time: Even though it is a rather conservative market, it’s dynamic enough for new opportunities to have arisen since you did your last market research.
If you have an offline business that you’re looking to expand into online, it’s also essential to identify the opportunities and potential logistical pitfalls.
Here are the main steps recommended for conducting market research when selling car parts online:
1. Identify target market Determine the target market for the auto parts you want to sell. Consider factors such as age, gender, location, vehicle type, and specific market needs.
2. Research competition Conduct extensive research on other businesses in the online auto parts market. Look for opportunities where you can differentiate yourself, such as selling underrepresented auto parts or offering unique customer service.
3. Determine demand Investigate the demand for auto parts, including popular makes and models, current market trends, and specific customer needs regarding auto parts.
4. Analyze pricing strategies Determine a pricing strategy that is competitive and sustainable while meeting economic and customer-based requirements for your business.
2. Know your demand: What to sell
‘Auto parts’ is a broad term that includes many narrower categories: spare parts, interior, exterior, headlights, wheels and tires, and many more. Each of these, in turn, can be further divided into specific manufacturer brands, parts for particular vehicle types, or even for specific car models. Let’s not get that granular; just see the most popular categories currently in demand in the automotive industry.
Wheels and Tires
Actually, the more accurate phraseology would be ‘wheels and suspension’ as it includes everything from wheels to tires to shocks and struts to hubcaps.
While they are typically classified as external parts due to similar selling patterns, the installation process for these parts is more complex and requires the assistance of a shop or mechanic.
Due to these specifics, these parts are often purchased by other businesses rather than directly by the customer, meaning that a B2B approach is necessary, with a shipping plan to facilitate their delivery, accurate fitment data from parts suppliers.
When it comes to selling wheels and tires online though, you should enable your customers to narrow their search by advanced filtering (diameter, width, offset, tread width, etc.), fitment check, and optionally provide the ability to set up custom wheel or tire dimensions.
Another nice feature to have on a website selling wheels and tires is a visualizer interface so that your customers can see how different product options will actually look on their vehicle. This is how it looks in X-Cart with the AutoSync visual vehicle studio enabled:
Interior
Such parts and accessories as heated seats, seat covers, carpets, lighting, cleaning tools and kits, ventilation systems, etc. fall into this category. These products are designed to enhance the overall comfort and convenience of the vehicle’s interior while also offering protection from wear and tear.
They don’t really require any special sales techniques, website interface changes or advanced fitment check beyond your normal business approach. Additionally, many of these items need to be replaced regularly, which makes the demand ever-green.
Exterior
Another great category to tap into is exterior parts and accessories. Some of the items that fall under this category are bumpers, fenders, grilles, hoods, mirrors, spoilers, roof racks, and splash guards.
Other exterior car parts and accessories can include door handles, door hinges, fuel tanks, exhaust systems, headlights, taillights, and window tinting. These parts form an integral part of a vehicle’s structure, providing protection and support while also contributing to its overall aesthetic value.
Many of these parts are perfect for selling on online platforms, such as eBay, and/or in an online store of your own. However, most of them require accurate fitment information to be in place and easily accessible.
Maintenance parts
A few examples of maintenance parts are oil and air filters, spark plugs, fluids (such as coolant and oil), lightbulbs and headlights, batteries, timing belts, etc.
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These parts are essential to the proper functioning and longevity of a vehicle, and regular maintenance of these parts can help prevent breakdowns and costly repairs in the future. In addition to regular checks and replacements of these parts, regular inspections of the vehicle’s mechanical components and functionality are also important for proper maintenance. This makes the demand even more ever-green than that of interior parts.
These items are also normally available in car workshops and showrooms, which makes them your potential target market as well.
Some of the other popular categories in the automotive industry are replacement parts for popular car models (e.g. Jeep Wrangler), specialty products (racing tires or off-road equipment), aftermarket performance parts (upgrades to the engine, exhaust systems), and more.
3. Know your buyer persona: Who buys auto parts online
Identifying your target buyer is critical when constructing an eCommerce website. If you have an existing website, use analytics tools such as Google Analytics to assess the profile of your current users. For those without a website, online market research is available to explore the behavior of the automotive aftermarket buyers and sellers.
Being familiar with your audience offers valuable insights into the best methods of selling auto parts online. Examples of such audiences include auto shops, local garages, vendors, and B2B wholesalers, while end consumers may include automotive enthusiasts or individuals seeking a specific part for their own vehicle.
By identifying your target demographic, you can better tailor your marketing efforts to boost customer satisfaction and increase online sales. Reach out to local mechanics and car enthusiasts to understand their user experience and pain points.
4. Know your surroundings: Who sells auto parts online
The information below is not only the list of your potential competitors. This is a list of opportunities to scale your business by offering your products via different sales channels and partnering with dealers and manufacturers to provide a wider choice of goods in your store at competitive prices. So, research competitors across all sales channels to determine your pricing strategy.
eCommerce websites
Many eCommerce websites, such as Amazon, eBay, and eBay Motors, offer a platform for sellers to list and sell auto parts and accessories online. These websites have a large customer base and can offer a wide range of products and marketplaces.
Independent auto parts retailers
Independent auto parts retailers, such as AutoZone and Advance Auto Parts – and potentially you – can also sell car parts online. These retailers often have established brick-and-mortar stores and eCommerce websites that make it easy for customers to purchase the required parts and have them delivered directly to their doors.
Auto manufacturers and dealerships
Some auto manufacturers and dealerships also sell car parts online, particularly replacement parts for their brands. This can be a good option for customers who need specific parts for their vehicle and want to ensure they get genuine pieces.
Online marketplaces
Online marketplaces, such as Car-Part.com and PartsMarket, specialize in the sale of used and salvaged auto parts. These platforms allow buyers to search for specific parts based on make, model, and year, as well as providing pricing information and shipping options.
5. Know your steps: Develop a business plan
Selling car parts online requires more than just building an eCommerce website. Before starting, it is crucial to conduct pre-planning and research. After that, develop a business plan, which is essential because no one can hit the target with their eyes closed.
Below are the essential things to consider before planning your business strategy:
1. Business Model: After researching the auto parts market and identifying the niche, choose a business model that would align with your target market, products, required investments, and long-term business goals. You can select auto parts dropshipping or become a car parts dealer.
2. Budget Estimates: Since starting an eCommerce business may require an initial investment, determine your budget and funding sources.
3. Target Market: Create a comprehensive plan covering target audience engagement, brand-building, and marketing strategies to promote your brand and sell auto parts online profitably.
6. Know legal requirements: Register your business
Understanding local, state, and federal tax regulations and obtaining all the necessary licenses and permits is essential for any business. Furthermore, registering your auto parts business is more than just a matter of following rules.
Here are some benefits that a company gets once it becomes registered and recognized by the law:
- Registration strengthens your company’s reputation. By showing your address and other essential details on your website, you contribute to customer trust.
- If your company is registered, obtaining funding from banks and other finance institutions is easier. Registration gives your company an identity and makes it a valuable asset in the eyes of banks.
- Registration allows you to segregate your business funds from your personal finances, protecting you from tax problems. Whether you pay weekly or annually, separating your company checking account from your personal bank account will allow you to access the essential information for your tax statements quickly and easily.
7. Build an online store: Choose an automotive eCommerce platform
We have a detailed article on how to choose an eCommerce solution for your auto parts store and another one comparing several options. We won’t bore you with too many details here, but we’ll outline the main criteria of choosing an automotive eCommerce solution.
- Automotive-specific functionality
- Year/Make/Model filters (preferably a native functionality, not a third-party plugin)
- Search by VIN
- Support for extensive catalogs and good scalability
- Catalog data integrations
- Product bundling
- Dropship opportunities (integrations and maintenance)
- Order fulfillment
- Mobile-ready, sleek design options
- The ability to tweak not only storefront design, but the functionality as well
Whether you decide to go for X-Cart or choose one of the alternatives, remember that the eCommerce platform should streamline your business processes and help eliminate manual labor wherever possible in favor of automation. This way, you can expect to spend your time actually developing your business instead of wasting resources maintaining your eCommerce platform.
8. Arrange your product catalog: Import and export complex product data
Structuring your product catalog is one of the most critical steps in launching an automotive eCommerce website. This requires importing credible and standardized auto parts data and converting it into your product listings.
Since a car parts eCommerce catalog may contain up to a million SKUs (or even more!), updating and managing it requires fast bulk import options and integrations with trusted auto parts data networks, such as ASAP Network, SEMA Data, AutoSync, and others.
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X-Cart is the eCommerce platform that provides all the integrations mentioned above as built-in functionality and offers custom solutions to connect your store to the product data provider of your choice.
Quickly and easily import auto parts product data from major aftermarket data providers, ensuring timely and verified catalog updates.
9. Set up order fulfillment: Automate your logistics
Ensure you have an efficient fulfillment strategy in place. While some automotive businesses spend lots of time manually fulfilling orders, struggling for better delivery times, managing returns, and balancing the quality of the shipping service and its cost, there is a solution to help you avoid logistics hassle.
X-Cart provides automated order data processing through the pre-built Turn 14 Distribution and Torqued integrations to help you manage your stock and catalogs effortlessly across your distribution channels.
10. Build an eCommerce ecosystem: Integrate tax, payment and shipping software solutions
Managing taxes, shipments, and inventory levels can be a time-consuming process. Fortunately, many eCommerce platforms offer integrations with distributors, payment processors, and tax providers, making it easier to manage these tasks and focus on growing your business. With these integrations in place, you can streamline your internal operations, reduce the risk of errors, and free up more time to focus on expanding your business and serving your customers.
So if you’re looking to simplify your eCommerce operations and take your business to the next level, consider investing in a platform that offers these integrations and other helpful features.
11. Know your stuff: How to attract and keep your customers
After you’re all set with the logistics, your business will require two essentials to succeed: marketing to attract new customers and customer service to gain customer loyalty.
Your marketing efforts may include digital advertising, social media marketing, emails, as well as offline marketing (billboards, flyers, gift cards, radio, etc.). Make sure you take into consideration your shoppers’ whereabouts: favorite media channels, industry forums they might like, news portals, interest groups. Quick tip: check relevant Reddit and Quora threads for ideas and maybe even potential customers.
Entering the automotive industry, you should already be aware that your potential customers are rather set in their ways and expect a high level of customer service.
A great customer service in its broad definition includes smooth on-site experiences, seamless omni-channel presence, competitive offerings, and the availability of your products as well as pre-sale and post-sale communications. In other words, anything that impacts customer loyalty and consequently your retention rates.
TL;DR
Since this was a rather lengthy article, let us summarize it for you in the eleven most crucial steps:
1. Choose a platform to sell on: You can create your own website and sell through it with the help of an automotive-centric eCommerce platform, plus it’s never a bad idea to consider selling on Amazon, eBay, Walmart, or other online platforms.
2. Research the auto parts market: Know your products, what is in demand, how much are they selling for, etc.
3. Determine your pricing strategy: Decide whether to sell at a discount or try to sell at a premium price by offering high-quality products.
4. Know your target audience: Define your buyer persona and discover the most engaging ways to communicate with your customers.
5. Register your business: Comply with local and state regulations to avoid legal issues and boost customer loyalty.
6. Partner with suppliers: Find reliable suppliers to source quality auto parts for resale.
7. Develop product listings: Create detailed and accurate product descriptions, including high-quality photos, clear specifications, and accurate compatibility information.
8. Monitor your inventory: Keep track of your sales and make sure you have enough inventory to meet customer demand.
9. Promote your brand: Leverage social media, email marketing, and other channels to build brand awareness and drive sales.
10. Provide exceptional customer service: Respond quickly to customer queries, fulfill orders efficiently, and offer a generous return policy to build a strong reputation for your auto parts business.
11. Review and adjust: Monitor progress, review and adjust your sales and marketing strategy, pricing plan, distribution channels, and outreach activities to address the latest market trends and maintain customer satisfaction.
Source: https://t-tees.com
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