There are many different ways one can make profits from the comfort of their home, but today we are going to share a different way. We say different because the online auto parts trade is still in its infancy stage and not many people are familiar with the opportunity.
Look around you when you are on the road. There are millions of cars, buses, motorcycles, boats and not to mention sports vehicles. They all require or will require some maintenance or parts down the road. It is just a matter of time. In fact according to the U.S. Department of Transportation Statistical Records there were 241 million registered vehicles in 2007 in U.S. alone, and this does not include the vehicles in stores, salvage yards, auto auctions, and countless other places. Now, multiply this many vehicles by the number of parts an average vehicle has, and you get into trillions.
Before the internet age the auto parts industry had been primarily occupied by the big conglomerates such as NAPA, Checker and a few others but thanks to the internet this is changing. Today anyone who has an access to the internet has the opportunity to unlimited potential, and better yet create it from the comfort of their home. According to eBay motors 4.5 billion dollars worth of automotive related items are sold annually making it the most profitable sectors on eBay. The majority of sellers are ordinary people who buy and sell for a profit.
There are two different ways of profiting in this business. One is to open a brick-and-mortar place. The second way is to do it online. In this chapter we are going to skip the brick-and-mortar method as it takes tremendous capital investment, time and effort, and we will devote our energy to online strategy. The great part about running any online business is it allows you to be flexible, it operates 24-7, and gives you an access to global marketplace.
1. To generalize auto parts business involves buying some auto parts from various places, and selling it for a profit. The auto parts can be anything from small clips to big engines. We suggest that you sell the parts that are fairly easy to handle, not bulky or too fragile. For example window shields are big, fragile and difficult to ship. Very heavy parts are also difficult to work with. With this being said there are many online stores that specialize in handling these big, bulky and fragile auto parts and they do extremely well. It is a matter of your preference and choosing the parts you want to work with.
2. It is always better to play it safe before you dig in. So, we strongly suggest that you be patient and run a small test before asking a manufacturer for 100 headlights. If you happen to have some spare genuinely used auto parts or you know someone that might have some you can try listing them on the web. It doesn’t cost you anything and you will be rest assured that you are not wasting your money. To list your parts we suggest that you choose a website that specializes in the industry, allows you to pay on per-sold basis, and offers automatic re-istings.
3. If you want to go straight to the big game and skip the test mode then you will need to equip yourself with some inventory for cheap. The best way to obtain such inventory is from international supplier. The reason is the price. You can buy 100 headlights or any other parts for darn cheap. There are hundreds of auto parts manufacturers in China, India, Taiwan and many other countries that you can contact and purchase your inventory. Once you find a few manufacturers that you are interested in e-mail them with some questions. Ask them about minimum order, price per item, shipment terms and delivery time or any other requirements. This information is important as it will allow you to determine the selling price for you item. Check some good name stores to determine a competitive selling price for your auto parts.
4. It is vital to fulfill all the necessary legal requirements to operate on a bigger scale. Like with any business you must apply for business license to sell. For this you will need to contact the Department of Revenue. You also will need EIN (employee identification number), and register your business name through your state. Although optional but you might be interested in registering you trade mark, open business account and get a 1-800 number but again this is not required and we suggest that you fulfill only the basic minimum. The process takes less than one hour.
5. Contacting manufacturers, discussing the requirements details, getting your shipment and listing your parts – the entire process usually takes about 3 weeks in the beginning. Once you start selling, the process becomes your second nature, and the profits start flowing. The more parts you buy and sell, the more profits you reap.
6. The last piece of advice we want to give you is not to expect instant results. Success takes time to build. So be patient, follow the steps and your efforts will pay off big time.