The Importance of Credibility in Online Sales
With the continued success and growth of e-commerce among automotive consumers, it’s becoming easier and easier for dealers to expand their inventory from the lot to the Web. Like all industries, you are only going to be as successful as you are credible, and this is magnified even more so when selling vehicles online.
When surfing for a car online, consumers are typically not picking between local vehicles that they can see in person.
In fact, 75 percent of Q2 (2012) vehicle sales on eBay Motors were interstate transactions, where the vehicles were delivered to buyers outside the state of the sellers. In order to feel confident in purchasing a big ticket item like a car, the buyer needs to feel a strong degree of trust in the seller.
As a traditional car dealer, you’re provided with the luxuries of meeting face-to-face with potential customers, as well as allowing them to physically inspect the vehicle they’re looking to purchase. When selling a vehicle online, it’s up to you to best provide these luxuries to your customers; otherwise you’ll struggle to make sales.
To make sure that the customer receives an in-person experience from the comfort of their home, it’s best to use proper online techniques to build a strong rapport with them from a distance. The best example of these online techniques includes:
1. Research the marketplace
Odds are the vehicle you’re trying to sell isn’t one-of-a-kind. In fact, competitors are most likely selling the same vehicle as you. That’s why it’s important to do your homework, and find out what the competitive price listing is, as well as the average transaction price of recently sold vehicles.
When determining the vehicle’s worth, be honest with yourself regarding the vehicle’s condition and mileage. Mentally set a realistic reserve, and stick to it.
2. Vehicle Description
To build credibility, you have to be honest with your customers. When drafting up a vehicle’s description, you have a chance to make major headway with potential buyers if you offer full disclosure, while also hitting on the key features that make your vehicle a must have.
As a dealer, the vehicle description is your one shot to make a good first impression, so be articulate and mindful of what are truly the vehicle’s important features to highlight. Keep in mind that the average person typically will only read the first couple of lines, so make sure the description is short and to the point.
3. Photos
While you should avoid writing a War and Peace-sized vehicle description, the exact opposite is true when approaching vehicle images. Since a majority of online transactions will result without the buyer ever seeing the vehicle in-person, you need to offer images that capture every aspect of the vehicle. These photos need to be the equivalent of the buyer’s walk- around, so you should offer a minimum of 40 images that hit on every angle of the car.
Additionally, these photos need to be honest; otherwise you lose your credibility and may have issues once the transaction is complete. If the vehicle you’re selling has any dents, scratches, etc., you need to illustrate that. The buyer will appreciate that there are no surprises, and you’re more likely to close the deal faster thanks to the buyer’s comfort in what they’re seeing.
4. Managing a Listing
A common problem online dealers have is spending too much time developing their listings, and not enough time focusing on closing deals. Although a poorly crafted listing will lead you to zero results, you need to find a way to balance your listings without taking too much of your time away from interacting with potential customers.
What the top online sellers have realized is that it’s worth the investment to obtain help through Solution Provider software. These software providers will add an additional charge, but the time saved on managing the listing will payoff in the long run.
5. Working with Buyers
When your listings are all set, the final piece of the equation is the interaction you have with the buyers. To ensure the best results, it’s crucial to be in contact with interested buyers throughout their process to make sure any concerns are answered, as well as building trust and limiting buyer anxiety.
Open communication, relationship building and honesty are keys for becoming a successful online dealer. By focusing on those characteristics, you’ll build strong, online credibility that will payoff through reviews, word-of-mouth and, most importantly, in sales.
Editor’s Note: Stanfield is the senior manager of dealer training at eBay Motors.