The Ultimate Guide On How To Start An Auto Parts Business Online

The Ultimate Guide On How To Start An Auto Parts Business Online

There has never been a better time to start an auto parts business online. The automotive aftermarket is a multi-billion dollar industry, and the growth of eCommerce has created new opportunities for retailers to sell their products and services online.

The automobile sector in the United States is a $17.6 billion business that has been growing at an annual rate of 9 percent since 2016. According to expectations, automobile component and accessory eCommerce sales will reach $20 billion by the end of 2022, with car components and accessories eCommerce sales reaching $22 billion by 2023. This year is expected to continue the trend of rapid growth that was seen over the previous several years, with cross-device and cross-channel conversions playing an important role.

In this guide, we will discuss the different ways to start an auto parts business online. We will also talk about the different types of software that you will need to run your business and the eCommerce marketplaces where you can sell your automotive aftermarket products.

The Benefits of Owning An Online Auto Parts Store 

There are many benefits of owning an online auto parts store. The most obvious benefit is that you can reach a larger audience than you would if you were selling auto parts through brick-and-mortar stores. With an online auto parts store, you can also sell your products to customers all over the world. This can be a great way to expand your business and increase your profits.

Another benefit of owning an online auto parts store is that you can offer a wider selection of products than in a brick-and-mortar store. This can be a great advantage for your customers, who will have more options to choose from. It can also help you attract new customers and keep existing customers coming back for more.

When it comes to overhead costs, an online auto parts store can be more profitable than a brick-and-mortar alternative. You don’t have to pay for renting space or hiring employees. You also don’t have to worry about the cost of maintaining a physical storefront.

It is also more convenient for customers to buy auto parts online. They can shop for auto parts at any time of the day or night, and they don’t have to leave home to do it. This can be a great advantage for customers who live in rural areas or don’t have access to a physical location.

The downside of owning an online auto parts store is that you need to be able to manage your inventory well. If you run out of stock, you could lose sales and damage your reputation. You also need to be aware of the latest trends in the automotive aftermarket so that you can offer products that your customers will want to buy.

Another thing to keep in mind is that you will need good software if you want to run an online auto parts dealership. The bottom line is that there are many benefits of owning an online auto parts store. If you are thinking of starting a business in this industry, this should be at the top of your list.

Are Auto Parts Stores Profitable?

Online selling of automobile components and accessories may be a fantastic way to supplement your income or even start a full-time business. How much money can you make selling vehicle parts online? Car part retailers may generate anything from $500 to $50,000 or more each month by offering spare parts and accessories over the internet. Naturally, the amount generated will vary based on the type and quality of automobile components sold, your sales platform, marketing efforts, and other factors.

Factors That Determine the Profitability of an Online Auto Parts Store

When it comes to the profitability of a car parts store, there are a few key factors to consider. The following are some of them:

  • The type of auto parts and accessories you sell – There is a greater profit margin on high-ticket items such as engines, transmissions, and other major components than there is on things like brake pads or spark plugs.
  • The quality of auto parts you sell – Selling counterfeit or low-quality parts will likely result in lower profits and may even cause you to lose customers.
  • The ease with which auto parts can be found online – If your store is difficult to navigate or the search function doesn’t work well, buyers are likely to go elsewhere.
  • The accuracy of your fitment information – Listings that are incorrectly listed or have inaccurate fitment information will likely result in returns and lost sales.
  • The size of your inventory – The more parts you have on hand, the faster you can fill orders – but don’t go overboard, as too much inventory can be costly to store and manage.
  • Your level of customer service – Providing good customer service can be the deciding factor for a buyer when it comes to making a purchase.
  • Your chosen sales platform – Online marketplaces such as Amazon or eBay offer an enormous reach compared to online stores that only sell auto parts. This may lead to increased sales but could also mean that you receive less money per sale because of the commission taken by the marketplace.
  • Shipping and handling costs – If you’re not careful, these can quickly eat into your profits. Consider using a third-party shipping service to keep these costs down.
  • Your marketing efforts – A well-executed online marketing campaign can result in increased sales and higher profits.
  • Your competition – It’s important to do your research and find out what types of auto parts and accessories other online stores are selling. If you’re selling something that’s easily available at a lower price, you’re not going to make much profit.

By understanding these factors and making informed decisions about the products you sell, the sales platform you use, and how you market your business, you can make sure your auto parts store is as profitable as possible.

Pay Attention To Your Gross Profits and Absorption Rate

The objective of selling automobile components and accessories on eCommerce platforms isn’t just about the profit margin. It’s also all about gross profit and absorption rate. Online retail is a volume game, which implies you may take advantage of special offers and bonuses that aren’t typically available in physical stores.

For one thing, more sales indicate a larger number of consumers. And that means there are plenty of methods for you to provide exceptional customer service and retain clients. Shoppers are savvier than ever before, with a wider range of options available, so making a good first impression on them is critical.

OEM kickbacks are another advantage of high-volume selling. OEM back-end manufacturer incentives make up the majority of the aftermarket parts managers’ revenue from online sales. You won’t be able to sell enough goods at your physical counter to satisfy volume criteria, but you may do so online and get a substantial reward. As a result, selling online may be an excellent way to supplement your brick-and-mortar automobile component store or even consider it as a standalone business strategy.

Where To Sell Auto Parts Online?

If you’re in the business of selling automobile components and accessories, then you know how essential it is to sell your items online. Not only is this a wonderful method to meet new consumers, but it’s also an excellent technique to increase sales. Where should you sell your automobile components and accessories? You may list your goods on a number of platforms, including Amazon, eBay Motors, and Walmart Marketplace. Furthermore, you may offer your items through your own vehicle part website.


As the world’s largest online retailer, Amazon is an excellent place to sell automobile components and accessories. The site has a global reach, making it possible for you to market your products to consumers worldwide. What’s more, Amazon provides a number of resources that can help you increase sales. These include product images, customer reviews, and detailed product descriptions. In addition, Amazon offers a variety of marketing tools that you can use to promote your items.

The Automotive & Powersports category is restricted, and it’s only available to Professional sellers. It’s one of the Amazon categories that require pre-approval before you can sell items. To sell automobile and Powersports parts, tools, equipment, or accessories on your own eCommerce website as a Professional seller with an existing account in good standing or as an independent auto parts eCommerce site, which Amazon will analyze.

eBay Motors 

eBay Motors is another excellent online marketplace for auto parts and accessories. The site offers many features that can help you increase sales, including:

  • A search engine that allows buyers to easily find the items they’re looking for
  • Detailed product listings, which include images and descriptions
  • Product ratings and reviews
  • The ability to auction or buy items instantly

eBay Motors also offers marketing tools that you can use to promote your items. These include eBay’s sponsored ads program, which allows you to place ads for your products on the eBay website.

One of the most appealing aspects of selling automobile parts on eBay is how simple it is to create a basic listing using their interface to list automobile parts and clarify fitment. Compatibility, often known as fitment, is important for online automobile and accessory sales. Customers who aren’t aware of your components’ compatibility with their car may lose money if you don’t provide correct and complete fitment information.

Walmart Marketplace

Walmart is the third-largest player in the online retail market, and it’s a great place to sell auto parts and accessories. One of the most appealing aspects of selling automobile parts on Walmart is how simple it is to create a basic listing using their basic interface to list automobile parts and clarify fitment.

To sell automobile components through Walmart, you must first create a New Account on the Marketplace. Expect to wait two to three weeks after completing your Marketplace Application. It distinguishes it from eBay and Amazon because you can only sell automobile parts and accessories if you’re already an established online seller with a brick-and-mortar location or have an existing auto part website. This implies that you should have an existing internet sales history on your website, Amazon, or eBay.

It’s simple to join your items with Walmart’s file upload tools and link your eCommerce site to the Walmart marketplace API once you’ve been accepted as a Walmart auto parts supplier. When creating your Walmart marketplace product feed, you’ll need product identifiers, SKUs, brands, part numbers, model numbers, and so on.

Your eCommerce Website

Having your own eCommerce website is one of the most effective strategies to sell automobile parts and accessories. This allows you to control how your items are presented and the ability to sell items that aren’t available on other eCommerce sites. Furthermore, you’ll have access to a wealth of information that may help you better market your business. A similar retail website will also lend credibility to your consumers and the eCommerce platforms listed above by adding brand recognition.

There are several eCommerce website platform providers that can assist you in building an online store. Shopify, Volusion, and Bigcommerce are a few of the many providers available. All of these businesses provide free trials, so you may test their platforms before making a decision.

You’ll need to put up your eCommerce website after you’ve finished establishing it. You may import product data from other eCommerce systems or manually create new items. You’ll also need to input the pricing of your items and create product descriptions and images.

What Software Do You Need For Your Online Auto Parts Business?

The worldwide automotive aftermarket industry is expanding rapidly, and it is expected to reach $950.09 billion in 2027. That’s up from $693.8 billion in 2020. This development can be attributed, at least in part, to a number of causes, including the increase in demand for automobile components and accessories, as well as eCommerce’s growth.

Auto parts store maintenance has long been a laborious and time-consuming task, but it’s now getting easier thanks to technology. The most common problems in the automobile industry have been:

  • Order processing issues
  • Creating databases
  • Shipping products
  • Receiving payments issues
  • Marketing issues, etc.

Automation has become a standard feature of most businesses, and it’s especially critical in the auto parts industry. Software solutions have allowed companies to spend less time and money while increasing their efficiency. When it comes to automobile parts, the appropriate software might make all the difference. So, if you want to start an internet auto part company, be sure to invest in the best software. It will allow you to save time and money while increasing your bottom line. The following are some essential software solutions that most online auto-part businesses require.

Inventory Management Software

One of the most important pieces of software for online auto parts stores is inventory management software. It allows you to keep track of what products you have in stock, how much of each product you have, and when you need to order more. This is critical for auto parts stores because it’s easy to run out of a popular item and lose sales as a result.

It also helps you keep an eye on your profits and losses. When used correctly, inventory management software can help you make better decisions about what items to stock in your store. There are many different types of inventory management software on the market, so be sure to do your research before making a decision.

Order Processing Software

Order processing software is another essential piece of auto parts eCommerce. It automates the process of taking and fulfilling orders, which can save you a lot of time and money. When looking for order processing software, find one that integrates with your inventory management and automotive parts database software. This will make the process even more efficient.

POS System

A point-of-sale (POS) system is essential for any auto parts store that wants to be successful online. It allows you to manage your sales and inventory in real-time, which is critical for auto parts stores. It also helps you keep track of your profits and losses to make better decisions about what items to stock in your store. Because you must consider factors such as seasonal order prediction, multi-location inventory queries, and special-order monitoring, you’ll need a solution that is specifically designed for automobile part retail. Your POS system should also link to your database software to make part searches easier.

Auto Parts Database Software

Aftermarket automobile parts businesses handle data differently from other firms. This is why we want to make such a point of it. You must ensure that your clients acquire the component that fits their car’s model, brand, and year, with thousands of different vehicles and components for these cars.

It’s not as if you can simply use a general search engine to discover the auto parts you need. To be successful in this industry, your vehicle components business must have an automotive parts database software system. It allows you to input all of the relevant information regarding each automobile make and model so that customers searching for auto parts will only see those that fit their car.

Maintaining fitment data manually is time-consuming and difficult, which is why you should consider using third-party software. Illumaware’s Evokat Premier, for example, can help you keep your fitment data accurate, complete, and in the appropriate structure for your website, eBay, or Amazon. It ensures that your vehicle part lists are always up to date with compatibility information. This will aid in improving customer experience by increasing car part sales while lowering product returns.

If you’d like additional information about how to run an effective auto parts business, please contact us right away.