Online Automobile Spare Parts Business
There has been a large increase in customers looking for parts for vehicles and this has led to some successful businesses focusing on just one model. You could easily start a successful e-commerce store for specific car models. As a niche site you would most likely have little competition and could charge more for hard to find parts.
The auto parts industry is highly concentrated in that the 50 largest companies generate about half of the industry’s total revenue. Before you open an auto parts store, you must conduct thorough research of your market.
- Pick a location.
As an auto parts retailer, location is important for the viability of your business. Determine the saturation of auto parts stores in and around your prospective area of business.
- Conduct market research and create your market entry strategy.
If your store is near any of these big-name retailers, you must create a market entry strategy that ensures the viability of your store. Study your competition’s niche and marketing strategy and then create your own.
- Obtain the appropriate business license and permits.
to business licensing, permits issuance and business registration. Generally, you must register your business and obtain a general business license. Because you are going to sell auto parts, you must file for a sales tax registration as well. If you are going to sell used auto parts, you might need to obtain a separate license, depending on your business location.
- Hire cashiers and sales staff
The number you will need depends on the size of your store. Your sales staff must be familiar with, if not experts in, auto parts and the mechanics of auto parts replacement. It helps if they have training in the repair and maintenance of vehicles.
Having established the website, the main consideration of how to start an auto parts online business remains marketing. The best form of marketing for online businesses is search engine optimizations or SEO.
The ways to market an online business include:
- Participating in various online forums, offering advice and answering questions related to automobile parts, and advertising the website in the tag line.
- Registering at all possible e-commerce sites and directory listings. The listings that charge a fee, however, need consideration based on potential viewers.
- Attracting prospective buyers to the website through article marketing and starting a blog.
- Offline advertising by mailing automobile clubs, providing press releases to newspapers and trade magazines, select advertisements, word of mouth advertising to friends and relatives, and display stickers on personal and friend’s vehicles.
The success of any online business depends on establishing trust and reputation. The ways to establish such trust and reputation are by
- Fulfilling orders correctly
- Prompt and efficient shipping, adhering to the shipping terms and conditions clearly specified at time of order
- Having a return or refund policy and adhering to the same
- Providing for customer support by phone, email and online chat. Providing 24/7 support might require hiring some assistants.
Most people sacrifice the buy-what-you-see facility of the brick and mortar retail store for the online store for convenience and cost savings, and the online business that provides the customer with these two expectations, while matching the trust offered by traditional brick and mortar stores, stands a good chance of success.