5 Awesome Automotive Ecommerce Business Models To Watch Out For In 2015
The global automotive e-commerce industry involves the sale of automobiles and other retail activities, such as car parts, accessories etc. This industry still remains a huge market, yet to be capitalized by e-commerce entrepreneurs. The forecasted growth of global vehicle production is expected to exceed over 94 million in 2015. The research indicates that almost 80% of people around the world research online before buying their dream vehicle, unique accessories and associated parts. Such a scenario makes it more favourable for e-commerce entrepreneurs to drive this crowd to their automotive e-commerce platform. The following are the major e-commerce business models in automotive industry using which the entrepreneurs can explore the market.
This is one of the most discussed and most prospective business models of the future. This business model accelerates the engagement intensity of the users and keeps them anchored for a prolonged period. Social commerce can be adopted by using models that allow users to create their own collection of unique accessories. The portal should allow fellow users in the site to view, follow, share and purchase accessories from the collection thus created. This business model not only increases the engagement but also allows you to figure out the kind of accessories are trending in the industry from the Big Data available.
Niche automobile accessories
Another advantage of automotive industry can be the several potential niches you can identify and concentrate. Identifying the potential niche which could be served effectively is the key to success in this business model. Putting few examples, an online retailer might specialize around a particular make or model, offering hard-to-find or unique accessories for Chevrolet Corvettes, Volkswagen Beetles, or even the far rarer Pinzgauer 712.
Marketplace for automobile accessories
This is an advanced level of automobile e-commerce in which you provide an opportunity for retailers to open an online store, using your portal. eBay Motors is an example of this business model. The payment will be collected by you from the users and after absorbing your commission will be credited to the relevant retailer’s account. For this business model to be successful, you will need a sophisticated multi-vendor e-commerce platform which has the capability to handle the huge number of products that will be listed on the site. Marketplaces should have advanced searchandising and intelligent cross-selling tools which prove to be beneficial for both retailers and users.
Flash sale portal
Flash sale sites have always been a crowd puller, as these sites attract the user base looking for discounted products. This business model needs to have a system to regularly entertain and engage your customers. Unless you keep them informed about the latest discounted products and create urgency in their minds to purchase the product instantly, this business model may not be much effective. To keep your customers engaged and entertain, you need to have effective tools such as newsletters, mobile push notifications and so on. These should be automated to deliver the right message to the right crowd on time.
Classified sites for automobile commerce
Classifieds have always been a success from the day they had a place in newspapers. Today, the classified sites have migrated from newspapers to dedicated online portals. Classified portals consist of three entities; the portal owner (i.e. you), the sellers and buyer. The seller can post the automotive accessories or parts or an automobile in your portal and a buyer will be able to find their desired products. The revenue for the portal owner gets generated through various ways like,
- Featured listing- The seller should pay to get priority for the listings so that a buyer can find it easily,
- Advertisements- Allow automotive companies to display their ads in your site.
- Big data sales- The portal owner could sell valuable data like the most listed automobile in the site and so on, to relevant parties.