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Can The E-Commerce Business Model Work For The Automotive Industry?

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Today almost every single thing a consumer is looking to purchase can be obtained simply with a click of a button. But even in this fast-paced digital world, there is one commodity that is still mostly purchased in person – automobiles.

on average, a 56% price gap. More recently, that gap has gone up to 62%, meaning buyers save an average of $14,000 by purchasing used.

Carvana, an online used car retailer and technology business, offers an innovative e-commerce solution. Their entirely online shopping experience is based on 360 degree photography that allows you to see the interior and exterior, with overlays highlighting ‘hot spots,’ like any dings or flaws you should be aware of.

But a car is an even bigger purchase than a home entertainment system. And when the car is used, there are a lot of extra variables. For used auto sales to make the jump to e-commerce, customers will need to have their peace of mind first. “People are comfortable buying a new TV online because they know what to expect. With a used car, you don’t always know what you’re getting, so people want to be sure of it. They want to see it and test it out.

 

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