The main question is would someone buy a car online without a test drive and by seeing it in person. What about the used car from the seller you never met or not heard its name? You might give a chance to a well-known automaker or a dealer. The stakeholders in the automotive industry is growing and well-known brand such as BMW is betting that people will do online sales. In addition, eBay motors is leading this thought of online sales and is committed towards it.
Let’s state the fact, buying vehicle online will be much cheaper than the buying vehicle from the retail store. This is because, automaker or the dealer will be able to save cost in terms of dealership store so price or discount will be certainly one of the reason to buy cars online. The cost saved from the dealer and automaker side will also be passed on to the user.
The car selection will be one of the advantage. Let’s say if one platform deals with multiple car brand, then it will be easier for the consumer to compare, select and make the purchase decision based on the requirement. So one convenient online stop shop will be an added advantage and will be more comfortable for different demographics. In addition, the mobile technology with virtual and augmented reality will enable the customer to go on for the virtual test drive and make an intelligent purchase decision.
eBay motors have recently conducted an online survey regarding online purchase of vehicle. And the company concluded that 1 out 5 consumer is willing to make an online purchase of vehicle. Whereas others are still using online mode to compare different brands and body and will join future force of consumer making the online car buying decisions.
eBay motors covers the buyer with $50,000 vehicle protection program for risk mitigation and establishing the trust on online purchase. The online business is mostly dependent on the trust and offering this kind of package will be certainly advantageous. This will further increase the expectation and brand value for eBay from both customer and seller perspective. eBay has developed a scalable automotive platform which also deals with auto parts and is also expected to get into the service vertical. From 2012 onwards, eBay has witnessed the increase in listing of auto product by two folds. In addition, the company says that they are able to sell auto parts and accessories every second.
At present, eBay motor is not working with the automaker, the company is only focusing on the dealer network. In addition, the company was very successful in selling the used BMW cars online in United Kingdom.
One of the world largest auto market is China. The country has technology enabled and youthful audience and the online vehicle sales model is perfectly suited for the Chinese audience. So BMW has started operating its virtual showroom for audience of China through Tmall.com, it is one of the Chinese site.
In the US, peer to peer sites are floating in the market whose USP is to get the best deals to the buyers from sellers. These companies are also providing services such as validating the vehicle condition by test driving and also performing the mechanical inspection.
Buying online auto parts is becoming more popular and succeeding in today’s environment. This process of buying online auto parts will also support online vehicle sales in future. The market is transforming with respect to online sales, and every stakeholder should be ready to offer unique digital services to make this model successful.