Ultimate guide of selling OEM parts VS aftermarket parts
– Start-up skill
When you decide to selling auto parts, you will meet few questions
- What are OEM parts and aftermarket parts?
- The differences between OEM parts and Aftermarket parts.
- How to start your business?
- Is OEM parts better than Aftermarket parts?
- Pros and Cons of OEM and Aftermarket
- Pros and Cons of selling them.
Here is the Ultimate guide.
OEM parts & Aftermarket parts
OEM parts: OEM stands for Original Equipment Manufacturer. The OEM is the original producer of a vehicle’s components, so OEM parts are identical to the parts used in producing a vehicle.
Aftermarket Parts: Aftermarket parts are manufactured by a company other than your car manufacturer. A number of companies make parts designed to function the same, or in some cases even better than the original.
Q: Question, are all your Benz car parts made by BENZ?
A: The answer is NO. Sometimes the automotive brand does not make the OEM parts but hires an outside company to be the official manufacturer of that part.
Difference: OEM parts & Aftermarket parts
Biggest difference is
OEM parts: Expensive
Aftermarket parts: Cheap
Usually the retail price of OEM parts is about 2-3 times than aftermarket parts.
How to start your business?
Sell OEM parts: You need to be a dealer’s auto shop
Sell Aftermarket parts: an independent shop or online shop is okay.
Think: Does a less expensive aftermarket part mean a poorer-quality part?
Pros and Cons of OEM and Aftermarket Parts
| PROS | CONS | |
| OEM | Easy and simple to choose part | More expensive |
| Quality guaranteed | Need to be the dealership | |
| Comes with a warranty | Product quality may not be superior | |
| Better after-sale service | Limited availability |
| PROS | CONS | |
| Aftermarket | Low cost | Quality varies greatly |
| Quality can be equal to or greater than OEM (Potentially better quality) | Overwhelming selection | |
| More variety | No warranty (some of these parts are sold without a warranty, depending on price.) | |
| More availability |
Pros and Cons of Selling
| OEM | Aftermarket | |
| How to sell? | As an automotive dealer | Independent shop is enough |
| Sales advantage | *All the parts are created equal. *Aftersales service is good *easily to find OEM # *Brand will bring you customer naturally, you don’t need to do the marketing from 0 to 1. | * Quality may be superior * Price is more competitive * Available types and quality are more than OEM * Meet different requirements on price *You can control the price and profit |
| Disadvantage | *Not many available types *price is far less competitive *You are not able to make price and profit as your wishes *profit is limited *Customers are limited within your brand. | *Quality may be bad *Choice is also too much for you-find the fittest suppliers from hundreds of different offers. *Aftersales service from your supplier may be bad. *You need know more, not only OEM( Usually your supplier is distributor or wholesaler, they are not able tell you which car use this turbo. *Need do marketing from 0 to 1. |
After read my guide, if you are still not able to make up your mind, use this quick score skill to get your finial answer.
Take this as example, 5 scores for every item
| Profit | After-sale service | Potential customer Q’ty | Turnover | …….. | TOTAL SCORE | |
| OEM | 2 | 4 | ? | |||
| Aftermarket | 4 | 3 | ? | |||
After comparing the final TTL score, you will find your answers.
Last but not least, want to get started your business from aftermarket engine related parts,
Welcome to email me at autoparts@getturbos.com .
