Steps to take to open a wholesale auto parts business

STEPS TO TAKE TO OPEN A WHOLESALE AUTO PARTS BUSINESS

When you decide to start an auto parts business, it can be challenging, exciting and fun. It may not be too difficult, but it may require time to become established and to build trust in the automotive community. Persistence and patience are key if you want to succeed in the wholesale auto parts business.

Have a plan

If you want to start a business, start by putting down a plan of action. Find a capital source with some advertising ideas. The best business plan will help in getting a loan if needed. Start out by getting a name you want to use for the online auto parts store and then apply to get a business license. The license will give you a tax ID that you should use when you want to buy wholesale auto parts at a low price.

Get the suppliers

Find the automotive parts distributors and drop shippers or shops that are willing to sell closeout auto parts.The drop shipper is a distributor who will ship the parts in your place, so there will be no need to stock things in the shop. This lowers the overhead, which will lower the level of the risk.

Add the items that you wish to sell to the online inventory to show the customers that you have a large selection. This will increase your credibility and give different choices to your customers.

Advertising

When you advertise the automotive parts business within the automotive forums, it will increase exposure to the website. Attend automotive car shows so that you can increase exposure to your new business. You should set up a display and booth among the most popular parts in the market so that people can see what you have to offer. You can gain a lot of traffic to your site.

When the orders start coming in, this is when you should talk to the drop shipper. Inform the drop shipper that they should ship to the customer, and from that point on, they will be in charge of other things.

Tips

Starting the business from scratch will require you to attract customers. You have to find ways to let everyone know about the business. You have to be patient since it can take over a year to start to see the profits.

If you are ready to open a business that deals with closeout auto parts, end of run auto parts you will have to take into consideration many factors. First learn who your competitors in the industry are and how competitive they will be.

To get to know more about the business, you can talk to a manufacturer and auto parts wholesaler who will not be in direct competition with you. He can educate you more about complete auto parts inventories and how to find a supplier.

If you are ready to start the business, you may take time to see if there are any established businesses that will be willing to sell auto parts to you. This is because an established business will have already their customers. The established auto parts wholesale business will have a documented financial history, and you can sell off the unwanted or surplus automotive parts.You can also work as a franchise business for an established business.