Do you want to start a business and make money selling car parts from home? If YES, here is a 5-step guide on how to become an auto parts dealer online. According to reports, there are over 287 million registered vehicles in the United States. This simply means that there are ample auto parts business opportunities you can leverage on in the United States. Becoming an auto parts dealer can be an excellent way to make money.

According to research, a huge percentage of car owners prefer to buy new parts for their vehicles. They do that to keep them in good condition. Auto parts dealers provide car owners with spare/alternate vehicle parts; it’s as simple as that. Depending on the economic landscape of the location of your proposed auto parts business, you can make a profit of up to 500 percent.

However, the capital needed to start an auto parts store can be quite high, especially if you’re looking to open a store front with inventory. But if you choose to dropship auto parts, then you can save a lot in this aspect. The tough part of this business is most likely the need to get supplies of auto parts from wholesalers or directly from manufacturing companies.

This is because an auto parts business cannot be started without sourcing products for sale. Irrespective of low barriers to entry, the competitive nature of the industry makes it quite hard for new operators to break even within a short period of time in the industry.

5 Steps on How to Become an Auto Parts Dealer Online

If you are looking towards becoming an auto parts dealer, you would have to start from the very scratch (Physical Store or Online) because you can hardly get a franchise to buy. Now that you have decided to take the plunge, below are a few things you need to get up to speed on about this business.

  1. Research Your Market

Since the auto parts market is vast, it can’t be hard to find a store, even in a small town. Customers may have several options to choose from, so it’s up to you to decide what segment of the market you want to capture. It may be owners of classic and vintage cars, foreign cars or cars manufactured by select makers.

Knowing your market helps you to make sure that you are not setting up your business in an overly – competitive locale with well – established auto parts businesses. Note that an auto parts business works on a referral basis as well as on the foundation of a customer – business relationship. This means that customers are unlikely to leave previous establishments with which they have established a relationship.

Knowing your market is not a complicated endeavour. You can start running an internet search, local phone book searches and paying attention to adverts to identify similar businesses in your chosen location. Using the size and population of your city, know the exact demographic to target. Remember, auto parts businesses do well in low income societies.

  1. Form a Company And Get Required Paperwork

Have it in mind that states have varying rules and regulations pertaining to business licensing, permits issuance and business registration. However, to become an auto dealer you must register your business and obtain a general business license. Since you are going to sell auto parts, you must file for a sales tax registration as well.

If you are going to sell used auto parts, you might also need to obtain a separate license, depending on your business location. Make sure you acquire all the required licensing, permits, and insurance to run the business in your area. Pay attention to zoning regulations as well as state and federal guidelines.

  1. Choose a Suitable Location

Getting an office/workspace is vital to the success of your business. The truth is that if your marketing and advertising strategies are on point, people are going to look for your business. You can’t run an auto parts business in your garage.

You will need a location that is large enough to house and catalogue a variety of parts for different car models. Additionally, you would need a space where you can carry out inventory activities such as the cleaning, organizing, and labelling of parts. You would also need office essentials including shelves, desks, and cabinets in the long run.

Nonetheless, when renting a space for your auto parts business, make sure that you have enough savings to cover the rent for at least 6 – 8 months. This will give you more than enough time to get your business up and running without worrying about rent.

  1. Get a Supply Source

In the beginning, it may be hard to invest in the right parts. Consider starting small, and seek parts you know people are looking for. Take your time to know the parts you need and where to find them. You may decide to focus on providing parts for rare vehicles not in production anymore, as these will be in high demand among a small segment of the population. Additionally, you may choose to specialize in providing parts for very common vehicles in an effort to expand your potential sales base.

  1. Keep Your Inventory Updated

The success of your auto parts business depends on how effectively you manage inventory. If customers don’t find what they need at your business, they will happily shop elsewhere. Staying afloat and profitable in the business of selling auto parts will require that you keep an extensive selection of parts from a wide variety of vehicles.

Keeping a thorough inventory will make it easy for you to search for parts whenever you need it. Cleaning, bagging, tagging, and labelling of auto parts are all important facets of the inventory management process. You are also going to need a computer with a reliable internet connection.

Try as much as possible to avoid using your personal computer for work. Also try to shell out a couple of extra bucks for an office computer. With an updated inventory on your work computer, you know the exact state of your stock including the exact location of every auto part that your business is holding.


Starting an auto dealership business can be cost effective especially if you choose to start on a small scale or online. Howbeit, securing a standard and well – positioned facility and stocking your store with a wide range of car spare parts from different car manufacturing brands are part of what will consume a large chunk of your startup capital. If you decide to start the business on a large scale, you need to source for funds to finance the business because it is expensive to start a large scale auto spare parts business.