Auto parts store

Alexandoy

VIP Contributor
The dealer of auto parts in our town was having a problem during the lockdown last year. The delivery of the parts he ordered were not coming because of the covid protocols. The checkpoints on the main roads are harming the delivery trucks.

In a good conversation with the owner, I got to know that buying the parts is on a consignment basis and he earns by commission only. Unsold parts can be returned to the supplier with no questions asked. That is a pretty good business. The main concern is the rental of the store and the customers but with the supplier it is just like dropshipping. The only items that he buys with payment are the consumables like motor oil and car wax. For the supplier it is also a good deal just like having a branch office.
 
This is good then since the seller is not taking any risk that would lead to him losing so much when there are no sales. And Auto parts are always on demand and this would mean constant sales for people who are into this business. They do not have anything to lose at all.
 
If you are living in a small town where there are not many similar businesses, you can earn really well by opening an auto parts store. IN the big cities, where there are too many similar stores, you may not be able to sell well. When you ae trying to launch a business you need to see how tough is the competition.
 
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