Growing digital transformations and prominence of technologies like artificial intelligence or AI have completely changed the face of automobile shopping. The manner in which people purchase cars from dealerships has evolved dramatically over time. As per Mark Gilbert Scottsdale AZ, the demand for ecommerce sites for buying cars have substantially gone up in the recent years.
Mark Gilbert Scottsdale AZ discusses the advantages of automotive e-commerce
Automotive e-commerce refers to the process of selling and buying vehicles as well as related accessories, parts, services, etc., online. Many customers today are more inclined to not just researching but even buying cars online, instead of physically visiting a dealership. Adapting to this trend has become vital for modern dealerships to gain maximum customers.
The advantages of automotive e-commerce are many, including:
- Personalized customer experience: Embracing an e-commerce business model allows car dealerships to shape a more consistent and universally accessible customer experience. Unlike traditional showrooms where the experience might vary based on the salesperson, e-commerce platforms offer a more controlled and personalized buying experience. Companies can create customized e-commerce sites or independent storefronts, utilize digital and targeted ads to guide customers, and enable them to simultaneously view and compare a wide range of cars and brands. The entire process, from browsing product data to ordering car parts, can be seamlessly managed and monitored through the automotive e-commerce platform.
- Expand customer base: Historically, car dealerships have concentrated on local markets, and employed targeted radio and TV advertisements to attract nearby customers. E-commerce platforms help break down geographic barriers and allow dealerships to expand their reach across different markets. Customers today are no longer restricted to visiting their local dealership; they can explore various websites and make purchases from anywhere in the region. The e-commerce model facilitates market expansion, allowing automotive companies to reach new audiences and segments effortlessly.
- Cost reduction and operational streamlining: The advent of e-commerce has not only expanded market reach but has also prompted a significant shift in how automotive companies perceive their supply chain and inventory management. In the traditional dealership model, cars occupy valuable real estate until they are purchased. However, with the online purchasing model, dealerships can broaden their inventory beyond the physical lot to include vehicles still in the factory. This approach allows dealerships to enjoy cost savings related to lot space and real estate. Moreover, it offers customers a more extensive array of options when making car-buying decisions.
- Omnichannel selling for revenue growth: The omnichannel approach to sales has been helpful for many industries, including the automotive sector. This model seamlessly integrates local dealerships with online platforms, providing customers with a holistic and interconnected buying experience. For example, a customer interested in a vehicle can explore its features online and then schedule an on-site test drive before making a purchase. This omnichannel strategy enhances the user experience, provides more conversion paths for customers, and opens up new avenues for revenue generation for both customers and dealerships.
In the opinion of Mark Gilbert Scottsdale AZ, the automotive e-commerce system can be beneficial for both customers and auto dealerships. Hence, it is important for dealerships to effectively embrace this business model.