How To Start A Car Parts Shop Business Successfully

How To Start A Car Parts Shop Business Successfully (1)

If you wish to start a retail business in the automobile industry, then you’ll consider starting a car parts shop business. This car parts-related business is extremely profitable. During this article, we will explore an automobile spare parts business project plan for your prepared reference.

Every car part needs frequent change throughout the complete lifespan of the vehicles. And only this single reason makes the car spare parts business therefore lucrative and evergreen. The U.S., Canada, Germany, UK, Russia, China, India, South Korea, Japan, Indonesia, Thailand, Brazil, Mexico, Argentina, African country are the foremost automotive aftermarket globally.

There are many ways in which you’ll begin the business depending on your investment capability. However, never try to begin this business part-time. This kind of retail business demands constant dedication and efforts to achieve success.

Steps to start a car parts shop

1. Research your target market

Your client base is probably going to be a combination of personal motorists and driving businesses like repair garages.

Retail customers

The types of personal motorists that use your shop are seemingly to vary depending on the product you sell however could include:

people trying to shop for things that do not need any real mechanical data like screen wash and de-icer

People looking for gifts

competent home mechanics that need to shop for parts to service and repair their vehicles

people who need to modify their stock vehicles, for instance by adding a replacement exhaust or different wheels

Unless you concentrate on significantly unusual products that are hard to find in your native space, it’s seemingly that most individuals will not be supposed to travel important distances to go to your look therefore a reasonably outstanding location is probably going to be vital.

Trade customers

If you choose to sell components and accessories to the native motor trade (this is understood as ‘factoring’) you’ll establish what proportion demand there’s from freelance garages and other businesses. a look through the relevant classifications on and other similar online directories can provide you with a plan of what number repair garages there are in your space. you’ll conjointly look at native print directories. Look out too for alternative businesses that may need parts and accessories, for instance, used automobile dealers, vendor stores, specialists like a tire or windshield fitters, and then on. you would possibly strive to approach the proprietors of a number of these businesses to search out whether or not they would have an interest in the mistreatment of your services. As you’re seeming to be progressing to provide a delivery service to the current variety of client you’ll decide how large your trade catchment area are – but be realistic!

Finding out regarding your competitors

How well are your potential customers already served by existing businesses? Your most significant competitors are alternative automobile accent retailers and motor factors within 10 miles of your outlet. Look out for branches of enormous chains, like Halfords and monetary unit automobile components who have massive store networks and a big online presence. do not forget alternative businesses that sell motor accessories, for instance, DIY and hardware stores, massive supermarkets, petrol stations, ‘pound’ retailers, and then on. Count the number of existing motor factors that already deliver to the trade among your projected catchment area.

Try to determine three or four businesses that you simply suppose are your most significant competitors. Visit their retailers and build a note of the following:

  • Are they a part of an outsized national chain or renowned cluster
  • Are they good and enticing or shabby and run down
  • What size are their retailers
  • What sorts of product do they specialized center or example accessories, components and then on)
  • Where are they set (for example in a very shopping mall, territory or near to the city center)

It’s also vital to do and build an estimate of the impact that specialist online retailers like CarParts4Less can wear your business.

Research current trends, and legal and tax problems

  • Sector trends for auto part retailers
  • Legal problems for automobile parts retailers
  • VAT rules regarding car components retailers

2. Develop a Business Business Plan

Starting this business requires the creation of a specialized business strategy. Aside from generating a blueprint, the business plan aids in the identification of the objective and the methods for reaching that goal. It also aids in the acquisition of starting cash from investors or banks.

Create a business and marketing plan. Your business plan must include details on how you intend to operate the company. Also, include any specialties you have and how you plan to launch and run your business. Where will you buy your auto components, and how will you price them to make a profit?

Your marketing strategy should include information about your target demographic, local competitors, and how you aim to attract your target audience. You may create the plan yourself, or you can hire a professional plan writer or use business plan software.

3. Establish your client profiles

Depending on the main target of your outlet, you’ll have a combination of retail and trade customers.

Retail customers

Research has shown that your key customers are seemingly to be male motorists aged between eighteen and fifty. Feminine motorists are getting increasingly vital to the business and, whereas they’re statistically less likely to service and repair their cars, several can need to shop for maintenance products and other driving accessories like de-icer and screenwash.

Your ‘typical’ client can depend upon the main target of your look. You may, for instance, target the final driver, DIY mechanics, the modification market, store, products of, or maybe motorsports enthusiasts.

At sure times of the year, you’ll attract customers who wouldn’t commonly visit your look. Christmas and father’s day, for instance, could boost sales of products like maintenance packs, tools, and similar accessories that are bought as presents.

Some of your customers are creating what area unit is referred to as ‘distress purchases’. for instance, their battery might need failing that morning, and they might have to use the automobile promptly. Be prepared for times of year once distress getting is likely to be high – cold snaps particularly can boost demand for products like batteries and de-icer, and if conditions become extreme you are likely to examine an upward spike in demand for chain and snow socks.

Trade customers

Your trade customers, if you have got any, can embrace native freelance garages and body shops and presumably conjointly used automobile dealers, car vendors, and then on. If you provide, competitive costs you’ll even persuade alternative native retail accent retailers to buy a number of their stock from you. The companies that you simply provide can be something from little ‘back-street garages to larger, additional skilled outfits.

Trade/retail spilled

The proportion of sales created to retail customers and therefore the percentage created to the trade depends on the character of your look. in a very preponderantly retail outlet, wherever parts sales don’t seem to be a serious feature of the business, you might usually expect trade customers to account for fewer than 100 pc of sales. You’ll even decide to not provide the trade the least bit. If you are doing target trade customers still as retail, this proportion is probably going to rise towards five hundredths, reckoning on your stress and the amount of demand from native garages. A specialist motor issue would commonly expect to form at least 65th of its sales to the trade.

4. Decide what services to offer

Many customers can expect you and your employees to offer an explicit level of service. For instance, you’ll often be asked for recommendations on the suitableness of various parts and accessories for a selected vehicle, the benefits of employing an explicit product, and so on. Some DIY mechanics can evoke recommendations on repair and union procedures, whereas skilled mechanics may raise technical questions about product specifications. You and your employees ought to be ready to touch upon these queries – ideally, you’ll continuously be able to answer them yourselves or, if not, get details promptly from a provider.

Motor components and accessory merchandising could be a competitive market and it is a smart plan to appear for methods of characterizing your business from the competition. trust providing the following:

  • A free delivery service for trade customers – delivery ought to be prompt and reliable
  • A free while-you-wait fitting service for easy things like windshield wipers and maybe even batteries – offer some thought to however you’ll be able to offer this at busy times of the day
  • A fitting service (usually for a charge, reckoning on the complexities of the product) for things like in-car recreation, satellite navigation systems, and alarms
  • Rapid turnaround of orders once components don’t seem to control available

Think about alternative aspects of client service, for instance, exchange or refund of components that do not match or are not required (even if this is often a result of the client buying them by mistake). you could possibly even lend tools to customers who would like them for a selected job, however, take steps to ensure that these are continuously coming back in good shape. ensure that your employees are conscious of your client service policy and perceive what’s expected of them.

Decide what to sell

You will pick the main target of your look. You might, for instance, arrange to concentrate chiefly on maintenance and driving accessories – or presumably, you’ll focus additional on spare components for the DIY mechanic. Maybe you have got products interested in performance modifications or customizing accessories and want to specialize in these. perhaps you wish to stock leisure products still as motor accessories if you have got enough space – several automobile components retailers conjointly sell bicycles and sport accessories – the Halfords chain being a primary example of this.

There is continued demand for automobile recreation systems, that became more and more subtle in recent years. you might arrange to stock DVD players, speakers, and amplifiers, kits to attach media players like iPods to automobile stereos, and then on. Bear in mind that demand for a few previously key products has fallen in recent years – for instance, though there’s still a marketplace for them, standalone Saturday nav systems don’t seem to be as well-liked as they accustomed be as a result of many of us either have them enclosed as normal equipment in their cars or use a navigation app on a smartphone instead.

You may arrange to think about ‘factoring’ (selling components and accessories to the motor trade). If so, you’ll ensure that your components vary is sufficiently broad to satisfy the wants of native repair garages. a decent relationship with a large variety of suppliers is vital as your trade customers can expect a prompt ordering service for components that you simply do not hold available. The factoring trade is incredibly competitive – customers can expect keen valuation and smart service. a decent factoring outlet can usually attract DIY mechanics still as trade customers.

It is sensible to tailor the main target of your look to satisfy the wants of native motorists. for instance, if the area is an affluent one and therefore the majority of cars on the road are solely some years previous, there’ll most likely be a product’s tire of comparatively low demand for DIY union components and accessories. bear in mind that motorists desires amendment throughout the year and you ought to vary your stock consequently. Anti-freeze, ice scrapers, and screen wash area unit smart samples of the product to top off at sure times of the year. 

Your suppliers’ sales representatives ought to be able to advise you regarding seasonal lines and stocking levels, however, bear in mind that their 1st priority is to sell you as several things as possible!

There are many various lines that you simply might decide to stock. try and opt for fastidiously to form the foremost of your obtainable look area. Keep a watch on however completely different lines sell – if one could be a slow vendor then trust substitution it. competitive product area unit obtainable from terribly many various suppliers. Your customers can expect an alternative, however, strive to not duplicate unnecessarily. trust lines that, will complement others. for instance, if you sell roof-racks, take into account conjointly stocking top-boxes, baggage straps, cycle carriers, and then on. Decide however you’ll sell little things like bolts, washers, seals, and then on. you would possibly arrange to purchase these in bulk and sell them loose, otherwise, you could select ‘blister packs.

For many individuals, driving is closely connected to leisure activities. you would possibly take into account diversifying into alternative leisure products, for instance, camping equipment.

5. Hire Employees

Hire the proper manpower. In any startup business, initial workers play a necessary role in obtaining the initial success. Check, whether or not you wish a commissioned mechanic or not. to boot, if you wish to open the shop with a workshop then contemplate keeping an automobile engineer too. There are many free job posting sites that you simply will look for headhunting.

6. Promotion

Finally, it’s time to market your business. In the initial days, it wants a tremendous promotion and advertising. Additionally, the success of this sort of niche business extremely depends on B2B networking. you want to contact alternative businesses within the trade. As an example, automobile workshops get spare components in bulk oft. you’ll provide a special discount for them.

7. Stock Management That Works

You should be held accountable for all corporate financial inflows and outflows. Work to ensure that you have a good inventory management system in place so that you don’t run out of things that consumers demand. Due to periodic component shortages, it may be difficult to stock your store with all goods. Start with fast-moving items and order extra to guarantee fast-moving parts are available.

8. Setup the store

You must find out the shop properly. An of doors sign may be a should to boot, check the electrification, counter area, and shelves properly. you’ll discuss with an indoor designer to own the correct plan. However, you want to use each. of the area properly to urge the optimum advantages of it.

There are also some ways in which to begin your automobile components look and for your more facilitate we tend to are adding 2 additional existing ways in which to begin your automobile components shop:

1. Buy an existing business

You might attempt to get existing car parts to look at instead of starting your venture from scratch. buying a going concern will mean that the product, customers, regular sales, staff, premises, and instrumentality are already in place.

​But shopping for a business is often an unsafe, costly method unless you’ve got the correct skills and experience on your team, as well as legal and money power. Establish the real mercantilism and money position, so that the value you obtain the business isn’t too high.


Franchising is often an honest ‘halfway house’ between beginning out from scratch and buying an existing business. If you buy a franchise you will still be befitting your own business, however, you’ll take pleasure in the expertise, resources, and name of a business that’s already undefeated.

There are many franchises available within the automobile components and accessories sector. Though different schemes vary thoroughly, most feature the subsequent key points:

  • as a franchise holder, you’ll stay freelance however will use the identity (corporate colors, logos, name, and then on) of the franchisor
  • in return, you may pay the franchisor a fee – this may well be an occurrence investment, a monthly charge, or a mixture of each
  • both you and your franchisor can get to fulfill bound obligations and maintain bound minimum standards

Some franchisors can offer you any special coaching you need, facilitate with advertising and promoting, and recommend and support on a spread of business and technical matters.

Details of the on top of points ar began within the franchise agreement or contract, that each you and your franchisor can sign. The agreement will touch upon alternative matters, as an example any territorial exclusivity because of you and therefore the minimum amount that the franchise can run.

Before getting into a franchise agreement, it’s well to match the terms of various franchisors to make sure that you simply are becoming an honest deal. undergo the contract along with your solicitor before language something. additional info concerning franchising is on the market on the Franchise data website. info is also on the market from a people Franchise Association (BFA).

Consider selling online. In today’s digital era, you can’t ignore net audiences. you’ll sell the car spare parts from online marketplaces or your online store.

2. Selling on eBay and Amazon

Selling online is often a wonderful manner of reaching new customers and boosting your sales. however, fitting your eCommerce website is often costly and you may not make sure at the start whether or not the worth of the sales you will build online will justify the set-up prices.

As another, trading on eBay or Amazon helps you to get a pity selling on-line however with abundant lower begin prices. And you’ll attempt to persevere mercantilism through eBay and Amazon even after you have your online look.

Getting started

You might already have your own personal eBay account that you use to shop for things for yourself and to sell things that you simply do not want any further. however, if you are mercantilism as a business on eBay you are de jure obligated to create it clear in your listings that you are a business merchant. this implies that you’re going to either need to register a brand new business account or upgrade your account to a business one. there is steerage within the eBay seller Centre on the definition of ‘trading’ if you are not certain whether you wish to register as a business merchant.

Similarly, with Amazon, you’ll use an existing account or produce a brand new one after you register as a business seller.

If you are not already running a business and you plan to begin selling things on eBay or Amazon – maybe simply during a little thanks to beginning with – then you’ll have to apprize hm Revenue & Customs (HMRC) that you are trading. there’s steerage on the Gov.UK website that gives a summary of what counts as trading and what counts as self-employment. It also provides details of your tax and record-keeping obligations.

Decide whether to own your own virtual ‘shop’

Having your virtual storefront can provide your business with a valuable online presence and can enable you to show all of your products along in one place.

When you sign on to sell on eBay, you’ve got the choice of fitting an eBay look. this permits you to form your look using an existing guide or to customize it to your style. you do not get to select the eBay look possibility straight away – you’ll decide it is best to attend till your monthly sales build up to a precise level so upgrade.

With Amazon, you will mechanically produce your shopfront despite the package you decide on. you will not be able to customize it very much however you may be able to add your name and brand and supply some info concerning your business.

How much will selling on Amazon and eBay cost?

Before you begin selling on Amazon and eBay it is a smart plan to seek out out what proportion you’ll need to pay in fees. betting on the things you sell and the method you decide on for selling them, your total fees are often quite substantial. And whereas a number of the fees you pay will be coupled to the number of things you sell monthly, others are possible to be fixed prices that you incur even though you do not sell something.

Both eBay and Amazon provide you with the choice of mercantilism as a business seller while not paying any fastened monthly fees, though it has always been more cost-effective to settle on a subscription-based package unless you are solely mercantilism a little variety of things monthly.

The eBay website includes a fee creative person tool and a fee calculator which will help you compare the fees for various selling strategies and find an honest plan of what proportion your actual per-item selling fees are possible to be.

The Amazon website provides elaborate fee guidance, as well as some samples of ratings for their subscription and non-subscription packages.

Managing your listings

Uploading your inventory to eBay or Amazon and managing your listings are often time-intensive tasks maybe, significantly if you are reaching to sell an outsized variety of things.

Both eBay and Amazon provide helpful listing tools, a number of that are free et al. that you’re going to get to obtain.

Promoting your items

Because there is such a large variety of things available on eBay and Amazon at any one time, it is very necessary that you simply do everything you’ll to square out from the gang.

Always certify that your listings embody correct, spell-checked descriptions which your photos and alternative pictures show the things that you are selling within the best possible light.

You might need to require it a step more and use the varied promoting tools provided by eBay and Amazon-like search optimization, cross-promotions, and paid-for advertisements.

Your name

As an eBay or Amazon merchant, your online name is extraordinarily necessary. All sellers have a feedback score supported by actual client feedback and this is often the most life that future customers can use to check that you are trustworthy and reliable.

So you will need to stay your rating as high as attainable by providing a wonderful level of client service and quick delivery at affordable costs. certify you usually respond promptly to client queries, touch upon returns expeditiously and keep a watch on your stock levels to avoid your listings showing an item as being available once it’s sold out.

Be aware that packing up orders and causation them out are often time-intense, however, it is important to remain on high of the duty to create certain that the correct things get delivered in experience to the correct individuals. several parcel delivery services currently provide bulk shipping tools that integrate along with your eBay or Amazon account and these will greatly change the method of composition and following your deliveries.

If you are selling on Amazon you may conjointly think about using the Fulfilment by Amazon service, wherever you send Amazon your inventory and they do all of the choosing, packing, and shipping moreover as providing customer service.