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.
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.