Creating an online auto parts store from scratch
In the era of Internet technologies, starting your own business has ceased to be difficult and overwhelming. Now everyone can open an e-shop from scratch with a relatively small start-up capital and enjoy all the benefits of the information society.
Moreover, today online stores are becoming a very popular alternative to traditional trading. Consumers are increasingly turning to online shopping because of the speed, convenience and lower retail margins compared to physical retail outlets. So why not take advantage of current economic trends to create a source of income for yourself and your family? In this article, we will describe in detail how to start an online auto parts store from scratch.
Trade in auto parts is a profitable and promising business sector, since the number of cars in large cities is growing steadily, therefore, the need for their maintenance is also increasing. And an online store will allow you to focus not only on your city, but also on the whole region, because the modern transport infrastructure allows you to deliver orders almost anywhere.
Of course, those who want to start this type of business will face many difficulties ahead, so first you need to think carefully about your business plan for an online auto parts store.
A business plan is an important stage in any business
First, it is worth considering what type of product will be offered on your site. These can be spare parts only for foreign cars or for domestic cars, or maybe for both. Secondly, it is necessary to determine in advance the size of the initial and further investments in business development and the corresponding rate of return. Thirdly, if you are organizing entrepreneurship with a partner, then you need to formalize contractual obligations in order to avoid possible conflicts.
And most importantly, you should get legal advice regarding the legalization of income from your business. Typically, these types of entrepreneurs are registered as either an individual entrepreneur or an LLC. The degree of financial responsibility of these two types of entrepreneurship is different. If an individual entrepreneur is liable with all his property and bears personal criminal and administrative responsibility, then a limited liability company risks only the amount of personal contributions of the founders.
Video webinar on the secrets of the success of online spare parts stores:
In addition, the founders are not criminally or administratively liable if they are not company officials. However, the creation of an LLC is more complicated and more expensive, and taxes are levied at a higher rate than from an individual entrepreneur.
It is possible that you will need a lawyer and an accountant on staff to prepare tax documents. Who exactly you have to hire depends on whether you are going to do the job of keeping your store running on your own or not. Keep in mind that the site needs constant technical support, in addition, you need to do work on processing and picking orders, advising clients, and so on. Therefore, not always one person can perform all these functions.
Search for suppliers of auto parts
To start a successful trading business, you need to find reliable suppliers of goods. It is important not only to provide customers with a good assortment, but also to give a quality guarantee, otherwise purchases in your store will not become regular and you will have to search for new customers all the time. This is why your suppliers must be trustworthy, always adhere to delivery times and only offer high quality parts.
With the development of modern technologies, the car has become not an indicator of a person's high status, but an object of everyday use. But, unfortunately, like all other equipment, the vehicle tends to break down and in this situation you will need spare parts to successfully complete the repair. That is why the question is so relevant now: "How to open an online auto parts store from scratch?"
Do you want to become a successful person? Do you want to start your own business related to the sale of auto parts right now? It's fine! But do not forget that you have a lot to learn and a lot to learn. Let's consider whether it is profitable to sell spare parts on the Internet and how it can be opened in the shortest possible time.
Is it profitable to open an online auto parts store?
It should be noted right away that it is impossible to unequivocally answer the above question, because the profitability of absolutely any business depends on a large number of small details and nuances.
To figure out whether to open an online store, you need to analyze in detail the market in the area where you are supposedly going to trade. That is, you live in a medium and large city, where more than one hundred thousand people live, and there are no good retail outlets nearby offering such products, then your online store is simply doomed to success and high income.
But there is no need to despair and give up the idea if the city already has professional retail outlets that have regular customers. Because by showing a little imagination and proposing a new form of trade, you can win the recognition and respect of a large number of customers.
If it comes to selling spare parts for any one car brand, then it is best to implement such a project in a big city. Since it is there that more people will be present, driving the car of the brand you have chosen.
What issues does the creation of your web resource solve?
The main advantage of an online store is that after opening it, you can solve a whole list of specific problems that ordinary retail outlets have.
First, an online showcase is created, where you can find complete information related to the assortment and products you offer.
Auto parts are in stable demand, so trade in them has retained its attractiveness over the past decades. Many novice businessmen prefer to start their own business with this type of trade. Moreover, such a form of it as an online store is gaining more and more popularity.
The nuances of the online store
The business plan in this part should contain in a concise form an assessment of the advantages and disadvantages of the project, as well as justification of its feasibility. The trade in auto parts is a rather tough competitive environment. Therefore, the assessment of the pros and cons of the project should be comprehensive. Let's consider what aspects it should cover:
- The state of this market segment is critical. In other words, you need to find out what parts are in demand and at what price in the region. Based on this, you can determine the range of products that the online store will offer customers.
- Logistics is also critical. The cost of purchasing and delivering auto parts to a large extent forms their selling price. Therefore, a business plan must necessarily include a list of prospective suppliers of auto parts. The same section contains brief information about possible transportation methods and the cost of delivery of auto parts.
- In the third paragraph of this section, the business plan should contain a brief calculation of the required costs and expected profits. At the same time, in addition to those listed above, the costs include the cost of buying or renting production space, staff salaries, creating and maintaining a website, utility and tax payments.
Important. This information, intended for own consumption, may be given in approximate form. The main thing here is to understand the order of the numbers, based on which one can draw a general conclusion about the profitability of the project as a whole.
It should be noted right away that the business plan contains information requiring more details in its other sections. Document options intended for potential creditors or partners may differ significantly from the option that the entrepreneur writes for himself. But the general scheme of the document is preserved in any version.
Website development and maintenance
In the business environment, there is no unequivocal opinion as to at what stage of the implementation of the project of an online store selling auto parts to open its website. Many people believe that the site should be opened at the final stage, when everything is ready to start trading. Others, on the other hand, believe that creating a website should be the first step towards creating an online store. It seems that the best compromise is when the site is opened immediately, but its options are connected as they are actually filled. The fact is that advertising is of great importance for the success of online commerce. Moreover, the main load falls on the website of the online store. The more advanced it is in search engines, the more visitors will come to it, thereby increasing the number of potential customers. Therefore, the earlier the work on website promotion in search engines begins, the better. First, let the site perform a presentation function, announcing the future opening of an online store. As the project progresses, the number of its functions will increase. These may include, for example, testing site options and pre-advertising. Surveys of visitors can be very useful in order to get more complete information about consumer demand and find out their attitude to the quality of the site.
Cost of the auto parts store website
There are several types of online store, but only the classic type is suitable for full-fledged trade in auto parts. In this case, the site should act as a virtual trading platform. Usually the list of these functions looks like this:
Anyone with a keen eye has noticed how the emergence of Internet services has quietly replaced the familiar. For example, the ability to take out a loan (MFO), taxi services (UBER), ordering plane tickets and, of course, an online sales site. It will tell you how to open an online auto parts store, what you need to know from economics and marketing, and where to start for an entrepreneur who wants to start his own network project from scratch. After all, the new concept did not bypass the supply and purchase of parts for cars, replacing various supermarkets that are largely outdated in format, not to mention car markets. Knowing how to open a profitable online auto parts store can make good money.
Online store - advantages and pitfalls of business
- Starting an online business is easy. This does not require capital investments or long leases and other costs associated with premises and commercial real estate;
- Lack of extensive staff working according to the traditional scheme of employment. It is recommended to have relations with the operators of the online store at the level of agency or commission, attracting various freelancers and independent contractors to participate in the business;
- A simplified supply chain, bypassing unnecessary intermediaries and allowing to significantly reduce the price on the market without sacrificing profits , but allowing to open capital-intensive sales channels for auto parts;
- Lack of explicit communication with contractors, because the work of the online store allows you to use simplified tax planning methods, which is a positive factor of competitiveness;
- Direct contact with the client through his own virtual showcase of auto parts;
- The prospect of creating a flexible logistics system, easily diversifying the supply portfolio from various accidents and delays;
- Possibility of using various methods of paying customers for auto parts and settlements with partners - starting from traditional bank cards and payment systems (such as Yandex. lgi) to new advanced financial technologies based on the blockchain platform.
In addition to the listed advantages and arguments in favor of opening a site dedicated to the sale of auto parts, there are several important points that are critical parameters that require close attention from a novice entrepreneur:
- Competition in the traditional format is at best limited to the store across the street. And opening a web service means competing with almost the whole world (cars and the Internet are even in Somalia or Zimbabwe).
- Stable operation of the auto parts web service and custom site functions.
- A separate issue concerns the work with orders when the details are coming from abroad. Customs risks can be part of the costs of running an online store. Therefore, it is recommended to open a duplicate supply chain so as not to let down the customer who paid for the order.
Speed and reliability of delivery of auto parts to the customer is an important nuance in the Internet business.
You can work in different ways:
- Open a distributed network of warehouses by region;
- Create a delivery service - couriers or work with courier companies on an outsourcing scheme;
- You can open a mobile point for issuing parts to customers, forming a package of orders for a specific locality (most suitable for sparsely populated or remote areas).
Opening an online store selling auto parts
- The number of car owners in a particular city or settlement;
- The approximate composition of the vehicle fleet, promising car models in terms of supply of auto parts (brands, average service life, road conditions, etc. repair infrastructure);
- Do not forget about competitors - auto repair shops, service stations, offline stores, similar to Internet sites in the region;
- Consumer demand. Reveal the price category of customers. For example, for a small town (up to 100 thousand people), typical site users will be owners of second-hand foreign cars belonging to the middle and lower classes of material security, who are able to use network services. This includes customers who prefer self-repair to contacting repair services;
- Determining the range of spare parts suppliers and concluding supply contracts for the online store;
- Open a site for temporary warehousing of goods (some use your house, apartment or garage). The priority is proximity to potential customers, convenience of logistics. Warehouse with an area of 20 sq. meters will be enough. It is recommended to consider in advance the possibilities of expanding the business in the future;
- Development of the concept and functions of the site. It is worth using experienced developers - the functionality of the business, the security of payments and personal data of customers depend on the work and quality of the page;
- Registration of an online store with the tax authorities, tax registration. It is better to create an individual entrepreneur with a fixed tax base (UTII).
Is it profitable to open an auto parts store? - Yes!
Is it profitable to open an online auto parts store? - It's worth pondering ...
I will hardly be able to cover the topic in one approach, so wait for new articles on avtobiznes. iz
Let's start in order. I worked in an online spare parts store, as well as in car dealerships that do not have their own sites on the Internet. He worked both in the capital and in his hometown, where the population is about 100 thousand people.
At the moment, 2 out of 4 auto shops in which I worked have their own advertising Internet sites that I have developed. For example, the last one is www. ormula-drive. n. a.
What is the difference between an online auto parts store and an advertising platform on the Internet?
Why not create a full-fledged online store with the ability to select spare parts by car brand, as in TecDoc? Because economically it is not profitable! Why?
Calculate the ROI. If an auto parts store works as a retail one and you decide to expand your business and order the development of an online auto parts store, the question is the following. What is the point of investing 3-4 thousand dollars on the development of a good website with a selection by car brand, analogs by manufacturers, croscods and product pictures, if your competitors are your suppliers. Agree, no!
If you open an online auto parts store, you can count on an increase in sales with the right investment in advertising.
Keep in mind that a competitive pricing will, at best, have a 15-25% markup. If you think that the approval is out of the ordinary, then I can place links from the supplier's website, where the sale price on the wholesale section is one, and on the supplier's retail website is 22% cheaper. Average discount for good customers 35-40%.
The online store does not pay off immediately, and if you are not familiar with online commerce, then you are unlikely to reach the finish line on a dead horse. Simple mathematics, 1000 UAH of turnover per day, 20% of the exhaust, minus the cost of advertising and transportation costs and salaries of workers in the shop. Calculate how much you need to sell in order to recoup the costs in half a year and draw conclusions.