E-commerce and its impact on the automobile industry

E-commerce and its impact on the automobile industry

E-commerce has affected countless industries, including traditional ones like automobile.  The automobile industry is also seeing a change in the profile of its customers with millennials slowly emerging as the top buyer of cars.  It is only appropriate that the automobile industry adapt best practices in online marketing to reach out to more customers and maximize their earning potentials.

Millennials are predicted to make up 40 percent of the automotive market by 2020.  However, automotive firms still struggle to satisfy consumer expectations especially of the younger buyers. According to business research firm, L2, only four brands— Tesla, Ford, GM, and Hyundai—  have online shopping tools.

According to Google, the following are the best moments for the automobile industry to engage a prospective buyer:

Thinking of which automobile model to buy

One study has shown that six out of 10 car buyers have no idea which model to buy. Automotive brands, thus, should be clever enough to produce videos that can highlight the strengths of their car models and perhaps encourage prospective buyers to get these.

Contemplating if automobile model is appropriate

Once a potential car buyer has identified a car model to purchase, he or she would likely contemplate on whether the said model is the right vehicle to procure. It is during this stage when the buyer will look into other practical considerations such as number of seats and security features.

Determining whether the automobile model is within the budget

Obviously, the buyer will have to consider his/her budget.

Shopping where to buy the car

While Millennials do most of their shopping online, they naturally want to visit a dealer to see the car. In fact, this is the reason why the search phrase ‘car dealerships near me’ has been used extensively since 2016.

Checking if they are getting a good deal

Finally, Millennials want to check if they are getting a good deal before actually buying the car.