Today we are living in a world where time is everything. Even a jiffy saved is worth it for many people. Internet has proved to be a boon in these times. It would be wrong to say that the days of “brick and mortar” shops has gone, but certainly there is a noticeable reduce in purchases made from these shops. It is very important for businesses to have an online presence for a wider reach. Customers prefer to search for items online rather than going for conventional such as yellow pages or classified ads.
In this article I’ll try to explore the advantages of owning an online car inventory. First and foremost thing is to have an online existence. If people search for cars they should be able to find your dealership in an instant. This requires a strong presence and you have to be better than your competition to attract the customers.
One of the biggest advantage of an online car dealership is drastic reduction in operational costs. If you go for a brick and mortar shop then it will require a huge space according to the number of cars you have in the inventory. Secondly, you would require a large manpower to deal with the customers. At minimum a manager to manage the employees and deal with customer queries, 2-3 executives who are well versed with cars and their parts to be able to explain the inner details of each and every cars. The operational costs increases exponentially with even a slight change of plans. But, in case of an online auto trader the manpower and space required will reduce and thus lead to low operational costs and high profit margins for the dealer.
Secondly, online presence leads to better customer relationship. The dealers can update their inventory in real time to help customers be informed about latest trends in the industry. You can easily improve your reliability in the eyes of the customers by asking them for feedback and anything that might want to be improved. This will help you in long term as continuous improvements will lead the inventory towards perfection. Also, the customer satisfaction would be immense if you listen to their advice.
Next is cutting out the middleman from the whole deal. You can directly link the customers to the sellers. In this way there would not be any 3rd party dependency and profit margin will increase substantially. This would favor both the seller as well as the buyer. The seller will get a better return on investment whereas the buyer would get a better deal in a relatively lower budget.
The biggest challenge in owning an online car inventory is finding the best online inventory software. Everything depends on the software. Here, I would like to make a point that you should always go for software which has both free and paid versions. Since, these software would cost a bit it would be very useful if you tested the software before actually paying for it. The other thing is that I personally prefer open source software as it has better community and in case you have any questions regarding the software you can always post queries on the community page.
But, what open source software means? – you may ask. An open source software is the type of digital product which you download and, also have access to it’s source code. The advantage of that is, to be able to modify the software itself without having to depend in any pre-defined company or individual. For instance, a dealership may hire any developer to customize the software without been bind by contract or/and obligations.
Here, I have discussed the advantages of owning an online car inventory and to my knowledge they are true, but you should always do your research before getting into these kinds of deals.