Your 7-Step Guide to Dropshipping Auto Parts Profitably without Hassle
As an auto parts seller, you know all the main challenges of running an online store, such as managing complex product catalogs and ensuring high-quality auto parts data. And let’s not forget the hassle of shipping, inventory storage, and order routing between your distributors!
It’s only logical that automotive online retailers seek new opportunities for resolving those challenges and reducing time-consuming tasks to save time and resources.
Dropshipping can be a perfect solution for overcoming logistical constraints when selling car parts and accessories online. By passing on the shipping tasks to the supplier, you can focus more on maintaining and expanding your eCommerce store.
In this article, we’ll explain the dropshipping business model for selling auto parts, its benefits and potential drawbacks. We’ll also provide a list of the best-selling auto parts, guide you through starting a dropshipping online store, and help you avoid common pitfalls.
What Is Auto Parts Dropshipping? (And How It Works)
The auto parts dropshipping business model allows you to sell spare parts and accessories without storing, packing, and shipping them on your own.
The orders are fulfilled directly by the auto parts dropshipping suppliers, whereas sellers (dropshippers) control order processing and proper marketing.
To better understand how it works, let’s take seat covers as an example of a product for dropshipping. The supplier sets the price for seat covers, and retailers adjust it to include profit margins, shipping fees, and taxes before offering the product to customers.
Depending on the selling platform, a drop shipper can also be asked to pay listing or transaction fees (by the way, X-Cart doesn’t charge any transaction fees).
Once a customer buys seat covers, the distributor fulfills the order, and the drop shipper gets their profit from this sale.
However, the simplicity of the dropshipping model is deceptive. Just like with a traditional business model, running a dropshipping automotive business takes dedication and a well-thought-out strategy.
The Pros & Cons of Auto Parts Dropshipping
The dropshipping business model is highly appealing for automotive businesses due to lower financial risks and high flexibility in choosing products and suppliers. However, before adopting this approach, it’s important to weigh its strengths and weaknesses.
Dropshipping Pros
👍 No need to procure and store car parts and accessories
The huge advantage of a dropshipping business over a traditional online store is the ability to operate without having any inventory on hand, which frees you from keeping obsolete inventory of unsold stock.
This benefit generates the other values of dropshipping and becomes the #1 reason why dropshipping is so attractive for business owners.
Expert Tip: Dropshipping can be an additional source of revenue for traditional eCommerce online stores if they want to sell more than they have in their own warehouses.
👍 Low overhead costs
Unlike a brick-and-mortar store or even an automotive online store with its own warehouse, a dropshipping model helps reduce overhead costs. It frees the seller from warehousing expenses (rent, maintenance, and labor costs).
👍 Ability to automate order management and fulfillment
Limited time and finances are common challenges for all entrepreneurs. An automotive dropshipping business effectively addresses both issues. With eCommerce automation, you can significantly speed up order fulfillment by synchronizing data exchange between your online store and warehouse distributor.
👍 Flexibility of your product range
You can work with one distributor and/or connect to as many suppliers as needed. The dropshipping business model is often associated with a wide range of various products available for sale. This advantage allows you to respond to market trends and consumer preferences quickly.
Dropshipping Cons
Despite the numerous pros of dropshipping business models, there are also some challenges. Before launching an auto parts dropshipping store, you should be aware of the following potential issues.
👎 Lack of control over product quality and delivery times
Relying on suppliers inevitably entails order fulfillment risks. You don’t produce the products and don’t see what goes into the packs but have to handle possible customer concerns about incorrect, broken, or missing items.
In addition to product quality, you might face shipping issues, such as delays with order confirmation or delivery times. Indeed, some issues related to aftermarket parts ordering are beyond your control; however, you take responsibility for the money the customers spend on your website.
👎 Getting approved by dropshipping suppliers
This part of dropshipping might look challenging for beginners. Getting in touch with your potential dropshipping suppliers should be always preceded by preparation.
To make a solid first impression, buy a domain name for your auto parts online store. In addition, the domain registration might include a free email service, so your personalized email address changes to “yourname@yourautopartsstore.com” which looks professional.
It is crucial to gather information about the car parts supplier before making a call or contacting the warehouse distributor via email. Take a few moments to look through their website and see whether your question has already been answered.
👎 Inventory shortage issues
It is stressful to realize that the product the customer has just ordered from your store is suddenly out-of-stock. eCommerce automation significantly eliminates product availability problems by regularly (and automatically!) updating the details on the inventory levels, however, this kind of situation might happen to any dropshipper.
Expert Tip: To reduce the risk, X-Cart runs a live API call to check the availability of products every time a customer proceeds to the checkout page. You can also schedule automated inventory and price updates in your admin area to get the most up-to-date data.
👎 Fierce competition
The low barrier to entry is the main reason dropshipping is so popular among online retailers. Logically, it sparks competition in various niches, and the automotive aftermarket is no exception. The automotive niche is fast-growing; auto parts sellers should maintain healthy profit margins and choose the best-selling, low-competition products to stay ahead of the pack.
How to Start Dropshipping Auto Parts with X-Cart
Since you’ve already narrowed the niche down to automotive aftermarket, your next steps are choosing the products, launching your website, and starting to sell. This auto parts dropshipping guide covers everything!
Choosing the Right Products to Sell
Automotive communities and forums offer valuable insights into customer pain points and product ideas. Researching these platforms can be beneficial for businesses.
Later on, this knowledge can be used to highlight the value and necessity of your products, make up special offers with automotive product bundles, and better consult your customers.
Below, we share twenty sample non-seasonal aftermarket dropshipping products to choose from:
Finding car parts dropshipping suppliers
After defining the products, your next step is to find a reliable supplier that provides the vehicle parts and brands you’d like to sell on your website.
Important: To become a dealer in the United States, you must submit a form on a distributor’s website. For instance, Turn14 Distribution asks the applicants to provide data about their business structure, billing information, market focus, and other details.
Once your account has been registered and approved, you get the API key to integrate the auto parts database with your online store.
Building an online dropshipping store with X-Cart
Step 1: Try a free demo
There is no better way of getting to know the platform than testing it with a dedicated solution advisor. With a free demo, you have a chance to try all the features required for dropshipping. In addition, X-Cart solution advisors can guide you through the nuances of running an automotive eCommerce business, answer any possible questions, and find the right solution for your dropshipping store.
As 100% automotive software, X-Cart knows for sure how to better launch and set up an auto parts dropshipping store.
From built-in eCommerce integrations and native automotive tools to custom features, we’ve taken into account everything you need!
Step 2: Set up integration(s) with auto parts suppliers
Enable the integration add-on(s) to synchronize your online store with the aftermarket warehouse distributors. After that, link your dealer account using the API key.
Turn 14 Distribution: Automate order fulfillment for your automotive store with an award-winning national distributor.
Excellent customer service and 60% US shipping coverage within one day and 100% in two days.
Keystone Automotive Operations is the leading aftermarket automotive parts distributor with distribution centers across North America and Canada.
185,000+ unique SKUs from more than 800 suppliers.
After you install the add-on, link your dealer account using the API key.
Expert tip: Order fulfillment from multiple warehouses involves splitting inventory and tracking stock levels in various fulfillment points.
The most effective way to do this is to use distributed order management, whereby stock is synchronized from all locations and updated in real-time within your eCommerce platform.
Step 3: Upload your first products
Delete demo products and upload the new items. You can do it manually, or enjoy the power of eCommerce automation and seamlessly import product titles, descriptions, fitments, tags, categories, etc. In fact, automation is one of the seven components to manage the auto parts catalog as effortlessly as possible.
Step 4: Work on website navigation
The dropshipping business model doesn’t limit the seller to a particular number of products or categories, so you need to present them in a user-friendly way. Make website navigation simple and clear with the three-clicks system. To reach a specific product page, the visitor should optimally click the three times: select a category → subcategory → product page. Anything beyond this number makes a product page hard to find.
Here is an example of the auto parts catalog based on the three-clicks system:
Step 5: Set up payment methods
This is essential to building an eCommerce store. In addition to online credit card payments, consider enabling some integrations with Buy Now Pay Later services to offer you car parts buyers personalized and flexible payment plans.
Step 6: Choose a design template
X-Cart offers a variety of built-in themes, including templates explicitly created for the automotive niche. The professional designers developed a variety of appealing, responsive, and user-friendly templates compatible with the automotive fitment search tools (also available in X-Cart by default!).
Step 7: Start marketing your online business
Using proper marketing tools from the beginning is essential to any dropshipping business. Take advantage of opportunities to upsell and crosssell automotive parts and accessories to generate more sales (turbo kits, seat covers + seat back organizer and others).
Frequently Asked Questions
It depends on your business goals and resources. Aftermarket dropshipping is more like a small business with little investment, this type of online store is relatively easy to launch and maintain.
Should you wish to sell exclusive/custom automotive products and have more control over manufacturing, you’d better consider a traditional online business model.
The warehouse distributor sends order information to the dropshipper, who forwards the tracking numbers to customers.
Absolutely!
X-Cart is built with the automotive industry’s needs in mind. As an auto parts eCommerce solution, it offers built-in fitment search tools and integrations with reliable product data suppliers and warehouse distributors.
At the moment, we have direct integrations with Turn 14 Distribution and Keystone Automotive Operations. Both integrations are available for free on the X-Cart App Store, where a seller can find hundreds of eCommerce features for our auto parts software.
If you don’t see the required supplier in the X-Cart App Store, our team can tailor a custom integration with the aftermarket distributor of your choice and connect it to your dropshipping store via API.
Summing Up
When starting a business, it’s crucial to thoroughly consider all aspects and potential risks before making final decisions; dropshipping is no exception.
To thrive and get ahead of other aftermarket dropshippers, you carefully price your products, seamlessly manage your auto parts catalog, provide clear shipping information and top-notch customer support. And X-Cart is here to help you unlock your eCommerce potential.
Plus, we provide additional onboarding training for our automotive clients, offering four hours of onboarding calls with a customer success manager and a technical support engineer absolutely for free.
Ready to Start Dropshipping Car Parts with X-Cart?