Start An Automobile Parts Business - Business Ideas

Start An Automobile Parts Business - Business Ideas
Start An Automobile Parts Business

The automobile wholesale business sells auto parts to other businesses. This can include anything from car seats and tires to the engine oil and brake pads. The main goal of the automobile parts business is to source the items at a lower price and sell them to retailers at the wholesale price so that their customers can make a profit when they resell the products.

The typical customer base for this type of company will be auto repair shops, car dealerships, and body shops. Before you can open the automobile wholesale business it is good idea to research the market to see how the competition is, and know which parts are in demand.

Starting an automobile parts business requires a great deal of effort, dedication, and most importantly passion.

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

Key Stats

market size
$378B
starting costs
$30.1K
gross margin
30%
time to build
720 days

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $0 $6,900
Employee & Freelancer Expenses $151 $352
Business Formation Fees $5,600 $20,400
Equipment & Supply Expenses $63 $700
Inventory Expenses $350 $14,750
Vehicle Expenses $2 $10,004
Training & Education Expenses $0 $2,000
Website Costs $13 $215
Food Business Expenses $25 $500
Retail Business Expenses $0 $950
Advertising & Marketing Costs $75 $2,486

Successful Businesses

Business URL Rank
Transamerican Wholesale transamericanwholesale.com #152,832
Lear Corporation lear.com #198,632
National Automobile Dealers Association nada.org #205,262
just-auto just-auto.com #217,252
Overlander overlander.com #332,277
Automotive Logistics automotivelogistics.media #482,733
The Automotive Component Manufacturers Association of India acma.in #677,553
FuelTech Brasil fueltech.com.br #700,475
Scrubblade Inc. scrubblade.com #848,826
Adrenaline Offroad adrenalineoffroadoutfitters.com #868,754
Mighty Auto Parts mightyautoparts.com #954,718

Pros & Cons

Pros Description
Rewarding work Starting a automobile parts business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Meaningful business connections You never know who you will meet as a automobile parts business. 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.
Pick & choose the clients you work with Automobile Parts Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!
Unlimited income potential With starting an automobile parts business 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.
Cons Description
Crowded Space Competition is high when it comes to your automobile parts business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
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.
Longer Sales Process A automobile parts business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Low margins The gross margins for your automobile parts business are typically around 30%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the automobile parts business, 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.
Work can be inconsistent As a automobile parts business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.

Pat Walls,  Founder of Starter Story
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