Are You Making The Most Out Of Online Marketplaces?
Used vehicles are a focus in online marketplaces, but they’re important for new vehicles too. Are you using them to their full potential and to yours?
You have an online presence, but is it reaching as many people as possible? If you’re not using online marketplaces to their full potential, you could be missing out on sales.
In addition to maintaining your own website, or being connected to your brand’s site if applicable, high visibility on marketplaces such as AutoTrader.ca, Clutch.ca, Kijiji.ca, Auto123.com, Carpages.ca and more can give you a considerable advantage.
Are you selling on both sides of the fence?
Many people think online marketplaces are only for buying and selling used cars, but that’s not the case. Not only do these sites cover both, but cross-shopping is surprisingly common. According to marketing data firm Dig Insights, almost half of those who initially visited a marketplace to shop for used cars also considered a new vehicle; while one-third intending a new vehicle checked out the used-car offerings as well. If you have both in front of them, they may be more likely to look at what you’re offering.
The same study found that 77% of used-vehicle intenders visit online marketplaces in their search, far more than those who primarily looked at dealer websites for used models. But among new-vehicle shoppers, dealer websites and online marketplaces were almost in a dead heat, and manufacturer websites were only slightly ahead of them both.
Visiting a dealership in person is still a more popular option for new-vehicle buyers than for those looking at used, but the online numbers tell an important story. You could be missing out if you’re not putting your new vehicles in front of prospective buyers as well as your used ones.
The majority of new-vehicle intenders visited online marketplaces two to five times, far fewer than the majority of used-car buyers who visited eleven times or more. Without as many chances to grab attention from new-car buyers, you have to make your listings stand out.
Advertising your new vehicles
Some customers may be getting out of an older vehicle and haven’t thoroughly checked out a factory-fresh model in quite a while. This means they may not be aware of everything now offered on them, including items that used to be optional but are now either required equipment or included on most models.
These may be mandatory rearview cameras, Apple CarPlay and Android Auto, wireless phone chargers, larger touchscreens, adaptive cruise control, emergency front braking, and more. They may be obvious to you, but not always to your customers; and these shoppers could potentially bypass your vehicle in favour of one that’s advertised with a backup camera, for example, because they’re not aware that every new vehicle has one.
Many of the mainstream vehicles with small turbo engines run on regular-grade gasoline, but again, not everyone knows that – they might associate a turbocharger primarily with a premium sports car that needs equally-premium fuel. If the engine takes 87-octane, mention it as a money-saving advantage.
If you have various trims, then, if possible, advertise at least a midrange model. You can mention farther along in the text that you also have a lower trim and its price. But if you showcase a base trim and it’s sold by the time someone arrives to look at it, they may accuse you of “bait-and-switch” tactics – and they’ll be sure to publicize that on social media, too.
Advertising your used vehicles
Of course you’re familiar with this, but as with new vehicles, list everything your used ones have, even if they seem obvious, in case shoppers don’t know what’s automatically included. Tailor your advertising to the vehicle, such as towing and payload on a truck, or cargo capacity on an SUV.
Advertising your F&I products
On both new and used vehicles, mention your products up front. That includes financing, and especially its availability for those who might have difficulty getting a loan from a bank, such as younger buyers, new Canadians, or those without top credit scores.
Outline the warranty options, including any remaining factory coverage, and the availability of extended warranty plans for peace of mind. Also mention products such as GAP insurance or maintenance service plans.
You don’t want to clutter up your ad with all the details, but a quick run-down of their availability could get people looking more closely at your offering. Don’t assume that “everyone knows all this.” Customers who haven’t bought from a dealership before, including those younger buyers and new Canadians, may not be fully aware of everything you’re able to offer them.
Presenting your vehicles
If you don’t capture your audience’s attention almost immediately on a marketplace, you’ll be swiped to the side. Have an eye-catching photo as your main draw, and then include all the details – this is their virtual walkaround, and the more you show them, the more you’ll pique their interest.
Aim for an uncluttered background in photos, and shoot in front of your store as a landmark when they’re coming to see the vehicle in person. Try to take interior shots on a cloudy day or in light shade, so you don’t get areas washed out by sunlight.
Don’t use filters or alter the background. If shoppers figure out you’ve played with the photo, they may wonder if you’ve digitally enhanced anything on the vehicle too.
If you have to use stock photos for a new vehicle, make it very clear that they are, and that the models in your showroom may have different colours or features.
And finally, switch up your products regularly to keep your marketplace site fresh. Try to have at least a couple from each segment – trucks, compact to large SUVs, cars – on your page at each time, and then rotate your stock through it.
The bottom line
Online marketplaces originally started out primarily for private sellers, but they’ve become essential tools for dealers, and they’re equally important for new vehicles as well as for used. They reach diverse viewers, but you can draw all of them in with the vehicle’s specifications, good photos, and information about your F&I products. It’s an audience that’s eager to see what you’ve got, and it’s relatively easy to give it to them and lead to a sale.