The Rise of Automobile eCommerce Startups
Tuesday, 29 November 2022, 16:17 IST
E-commerce has revolutionized how businesses operate in India. From US$ 46.2 billion in 2020, the Indian e-commerce market is projected to rise to US$ 188 billion by 2025. It is anticipated to reach US$ 350 billion by 2030. India's e-commerce sector is anticipated to grow to 111 billion and 200 billion US dollars by 2024 and 2026, respectively.
An increase in internet and Smartphone usage is largely to blame for the industry's expansion. Automobile sector couldn’t remain untouched from it. The automotive industry has changed significantly over the last several decades, with use of technology scooters, cars and its spare parts are now available on ecommerce platform.
Automobile ecommerce refers to the buying and selling of vehicles and spare parts over the internet. An ecommerce sale is often done in coincidence with physical sales. For example, a new car is sold on a showroom, and its aftermarket parts are purchased on an auto parts ecommerce platform.
Automobile merchants are adopting an increasingly omnichannel strategy for selling, whereby customers may use both physical and digital channels to make an informed purchase, similar to many other digital commerce industries.
How the Automobile Industry is Shifting Gears Online
The automobile industry, traditionally being retail focused auto industry has had to adapt fast to changing consumer needs, after pandemic. In 2020, two-wheeler demand increased while people's desire to visit actual showrooms decreased. This made the transition to an online marketplace for vehicles more urgent. OEMs (Original Equipment Manufacturers) and dealers made the decision to adopt a digital business model.
However, unlike many other digital commerce sectors, the auto industry is using an omnichannel strategy. Physical and digital channels are offered to customers for purchase. The vehicle ecommerce sector has a huge future ahead of it because to a prospective client base made up of millennial and Gen Z, who prioritize convenience and quick delivery above all else.
The EV companies like OLA Electric and Bounce made the decision to pursue a "digital first" go-to-market approach, and they saw a spike in online bookings. As a result, established companies like Hero and Bajaj joined the trend in the automobile industry by expanding their offline presence to include online shopping.
Benefits of Automobile Ecommerce
The automobile ecommerce stores are beneficial for both the customer and businesses and can help increase revenue across the entire value chain.
1.Personalized customer experience
With an ecommerce business model, the dependency on salesperson is reduced, benefiting the automobile company and dealers to provide better customer experience. Customers can now simultaneously explore cars and compare brands in showrooms, browse product information and product pages, and even order auto parts. The automobile ecommerce platform manages and keeps an eye on every thing.
2.Customer base expansion
Traditionally, the car dealerships primary focus is the local market. However, ecommerce platform eliminates geographical boundaries and increases sales in many marketplaces. The ability to enter new markets and market segments thanks to an ecommerce model makes it simpler than ever for a bigger audience to shop and buy online.
3.Cut costs and streamline operations
In the traditional dealership approach, vehicles sits in the showroom until they are bought, consuming physical space. However, thanks to online purchasing approach, businesses may now increase their inventory to include cars that aren't on showroom but rather in factories. Automobile firms have experienced a huge shift as a result of e-commerce, not just in terms of their ability to reach new markets but also in terms of how they view their own supply chain.
By using this strategy, businesses can reduce the number of dealerships while saving money on showroom costs. When buying an automobile, it gives clients a wider range of possibilities.
4. All Brands in One Place
Through an ecommerce platform, a business has the advantage of customising the client experience. Ads that are specifically targeted might direct clients to the best store to make a purchase. Additionally, customers have the chance to simultaneously evaluate automobiles from various companies, browse product sites, and, if they so choose, order supplemental parts. An automated ecommerce platform can make all of this available.
How to Boost Automobile Ecommerce Sales
1.Social media
By creating pages on different social media sites like Facebook, Instagram and YouTube, companies can spread the words of their products and build engagement.
2.Digital ads
Digital advertising has altered how products are sold online and has the power to succeed or fail in a company's online endeavours.
Digital ads, whether on Google, Bing, or any social media, can promote and display vehicles. With customized marketing, an advertisement will show up in front of someone when they search for anything associated with a particular car or brand. This can increase a brand's overall reach and result in quick sales.
3.Integrating into Marketplaces
By integrating with current existing marketplaces such as Amazon, and Flipkart automobile companies can build and take advantage of a customer base on platforms for operations.
4.Customer reviews
Word-of-mouth is still important in online environments, and it is much more so for a company that is just starting out online. A company in the automobile industry that is proud of the work it produces can use customer evaluations as a platform to emphasis its strengths and the caliber of its clientele.
5.Virtual showrooms
The best output of COVID-19 is the growth of virtual showrooms. Showrooms were a productive setting for advertising vehicles prior to the pandemic. The companies can combine the benefits of traditional dealerships and internet businesses with a virtual showroom. Automobile manufacturers can instantly bring automobiles to life by combining eye-catching pictures that highlight the aesthetic look with technical details.
An increase in internet and Smartphone usage is largely to blame for the industry's expansion. Automobile sector couldn’t remain untouched from it. The automotive industry has changed significantly over the last several decades, with use of technology scooters, cars and its spare parts are now available on ecommerce platform.
Automobile ecommerce refers to the buying and selling of vehicles and spare parts over the internet. An ecommerce sale is often done in coincidence with physical sales. For example, a new car is sold on a showroom, and its aftermarket parts are purchased on an auto parts ecommerce platform.
Automobile merchants are adopting an increasingly omnichannel strategy for selling, whereby customers may use both physical and digital channels to make an informed purchase, similar to many other digital commerce industries.
How the Automobile Industry is Shifting Gears Online
The automobile industry, traditionally being retail focused auto industry has had to adapt fast to changing consumer needs, after pandemic. In 2020, two-wheeler demand increased while people's desire to visit actual showrooms decreased. This made the transition to an online marketplace for vehicles more urgent. OEMs (Original Equipment Manufacturers) and dealers made the decision to adopt a digital business model.
However, unlike many other digital commerce sectors, the auto industry is using an omnichannel strategy. Physical and digital channels are offered to customers for purchase. The vehicle ecommerce sector has a huge future ahead of it because to a prospective client base made up of millennial and Gen Z, who prioritize convenience and quick delivery above all else.
The EV companies like OLA Electric and Bounce made the decision to pursue a "digital first" go-to-market approach, and they saw a spike in online bookings. As a result, established companies like Hero and Bajaj joined the trend in the automobile industry by expanding their offline presence to include online shopping.
The automobile industry, traditionally being retail-focused auto industry has had to adapt fast to changing consumer needs, after pandemic
Benefits of Automobile Ecommerce
The automobile ecommerce stores are beneficial for both the customer and businesses and can help increase revenue across the entire value chain.
1.Personalized customer experience
With an ecommerce business model, the dependency on salesperson is reduced, benefiting the automobile company and dealers to provide better customer experience. Customers can now simultaneously explore cars and compare brands in showrooms, browse product information and product pages, and even order auto parts. The automobile ecommerce platform manages and keeps an eye on every thing.
2.Customer base expansion
Traditionally, the car dealerships primary focus is the local market. However, ecommerce platform eliminates geographical boundaries and increases sales in many marketplaces. The ability to enter new markets and market segments thanks to an ecommerce model makes it simpler than ever for a bigger audience to shop and buy online.
3.Cut costs and streamline operations
In the traditional dealership approach, vehicles sits in the showroom until they are bought, consuming physical space. However, thanks to online purchasing approach, businesses may now increase their inventory to include cars that aren't on showroom but rather in factories. Automobile firms have experienced a huge shift as a result of e-commerce, not just in terms of their ability to reach new markets but also in terms of how they view their own supply chain.
By using this strategy, businesses can reduce the number of dealerships while saving money on showroom costs. When buying an automobile, it gives clients a wider range of possibilities.
4. All Brands in One Place
Through an ecommerce platform, a business has the advantage of customising the client experience. Ads that are specifically targeted might direct clients to the best store to make a purchase. Additionally, customers have the chance to simultaneously evaluate automobiles from various companies, browse product sites, and, if they so choose, order supplemental parts. An automated ecommerce platform can make all of this available.
How to Boost Automobile Ecommerce Sales
1.Social media
By creating pages on different social media sites like Facebook, Instagram and YouTube, companies can spread the words of their products and build engagement.
2.Digital ads
Digital advertising has altered how products are sold online and has the power to succeed or fail in a company's online endeavours.
Digital ads, whether on Google, Bing, or any social media, can promote and display vehicles. With customized marketing, an advertisement will show up in front of someone when they search for anything associated with a particular car or brand. This can increase a brand's overall reach and result in quick sales.
3.Integrating into Marketplaces
By integrating with current existing marketplaces such as Amazon, and Flipkart automobile companies can build and take advantage of a customer base on platforms for operations.
4.Customer reviews
Word-of-mouth is still important in online environments, and it is much more so for a company that is just starting out online. A company in the automobile industry that is proud of the work it produces can use customer evaluations as a platform to emphasis its strengths and the caliber of its clientele.
5.Virtual showrooms
The best output of COVID-19 is the growth of virtual showrooms. Showrooms were a productive setting for advertising vehicles prior to the pandemic. The companies can combine the benefits of traditional dealerships and internet businesses with a virtual showroom. Automobile manufacturers can instantly bring automobiles to life by combining eye-catching pictures that highlight the aesthetic look with technical details.
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