Business Idea

Start An Auto Electronics Shop

About

Starting an auto electronics shop requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell auto electronics, or selling auto electronics online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start an auto electronics shop ➜

Key stats

market size
$269B
starting costs
$44.1K
gross margin
7%
avg product price
$550
time to build
11 months
growth
SEO
time investment
Side project

About

Starting an auto electronics shop requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell auto electronics, or selling auto electronics online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start an auto electronics shop ➜

Key stats

market size
$269B
starting costs
$44.1K
gross margin
7%
avg product price
$550

 

time to build
11 months
growth
SEO
time investment
Side project

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $10 $2,250
Employee & Freelancer Expenses $0 $5,500
Equipment & Supply Expenses $550 $6,000
Website Costs $232 $6,500
Business Formation Fees $5,600 $20,400
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Software Expenses $162 $3,094
Advertising & Marketing Costs $75 $4,786
Other Expenses $0 $300
Specific Industry Expenses $0 $500

Successful Businesses

Business URL Rank
Amazon us.amazon.com #11
Zoro zoro.com #12,783
carparts.com carparts.com #13,187
Followone followone.com #13,502
Abt abt.com #23,839
Parts Express parts-express.com #32,411
Full Compass fullcompass.com #46,272
jaycar jaycar.com.au #52,801
Sonic Electronix sonicelectronix.com #78,190
JVC jvc.com #127,228
Katapult katapult.com #146,675

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Meaningful business connections You never know who you will meet as a auto electronics shop. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Easy to encourage "impulse buy" In the auto electronics shop, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer.
Unlimited income potential With starting an auto electronics shop there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.
Amazing perks and discounts Working in the auto electronics shop comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Low margins The gross margins for your auto electronics shop are typically around 7%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the auto electronics shop, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a auto electronics shop, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
High overhead expenses With starting an auto electronics shop, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.
You may need to charge sales tax If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out [this article](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)

Marketing Ideas

  • 1

    Affiliate program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Direct sales

    You may find yourself in a spot where you're ready to hire a few (or many) salespeople to support the sales conversion process.

    Regardless if you have one or thirty salespeople, it's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 3

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.