{"id":3891,"date":"2023-12-14T12:13:38","date_gmt":"2023-12-14T12:13:38","guid":{"rendered":"https:\/\/www.coxautoinc.com\/retail\/?p=3891"},"modified":"2024-05-08T11:57:00","modified_gmt":"2024-05-08T11:57:00","slug":"where-is-automotive-ecommerce-today","status":"publish","type":"post","link":"https:\/\/www.coxautoinc.com\/retail\/ecommerce-learning-center\/where-is-automotive-ecommerce-today\/","title":{"rendered":"Where Is Automotive Ecommerce Today?\u00a0"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" height=\"683\" width=\"1024\" src=\"https:\/\/www.coxautoinc.com\/retail\/wp-content\/uploads\/sites\/20\/2024\/05\/ecommerce-blog-1.jpg?w=1024\" alt=\"\" class=\"wp-image-3878\" style=\"width:1080px;height:auto\" srcset=\"https:\/\/www.coxautoinc.com\/retail\/wp-content\/uploads\/sites\/20\/2024\/05\/ecommerce-blog-1.jpg 2121w, https:\/\/www.coxautoinc.com\/retail\/wp-content\/uploads\/sites\/20\/2024\/05\/ecommerce-blog-1.jpg?resize=300,200 300w, https:\/\/www.coxautoinc.com\/retail\/wp-content\/uploads\/sites\/20\/2024\/05\/ecommerce-blog-1.jpg?resize=768,512 768w, https:\/\/www.coxautoinc.com\/retail\/wp-content\/uploads\/sites\/20\/2024\/05\/ecommerce-blog-1.jpg?resize=1024,683 1024w, https:\/\/www.coxautoinc.com\/retail\/wp-content\/uploads\/sites\/20\/2024\/05\/ecommerce-blog-1.jpg?resize=1536,1024 1536w, https:\/\/www.coxautoinc.com\/retail\/wp-content\/uploads\/sites\/20\/2024\/05\/ecommerce-blog-1.jpg?resize=2048,1365 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">finger touches digital tablet showing car website on screen<\/figcaption><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>The idea of consumers buying their&nbsp;vehicle&nbsp;completely&nbsp;online&nbsp;used to sound like a crazy idea, right? As the automotive industry has evolved\u2014and quite frankly online shopping in general\u2014the desire and capability to buy vehicles completely online has taken&nbsp;the automotive industry by storm.&nbsp;Let\u2019s&nbsp;take Mark.&nbsp;He saw an&nbsp;ad&nbsp;for his&nbsp;dream car,&nbsp;started searching online and&nbsp;found it at&nbsp;his local&nbsp;Honda&nbsp;dealer website.&nbsp;After he personalized his payment,&nbsp;he was able to&nbsp;start&nbsp;the&nbsp;financing&nbsp;process,&nbsp;provided&nbsp;required personal&nbsp;documents,&nbsp;signed&nbsp;a contract,&nbsp;and&nbsp;now his dream&nbsp;car&nbsp;is being&nbsp;delivered&nbsp;to&nbsp;his&nbsp;front door.&nbsp;All this&nbsp;is&nbsp;being done&nbsp;in the comfort of his home&nbsp;without&nbsp;having to&nbsp;engage&nbsp;with dealership staff via phone, email,&nbsp;text,&nbsp;or&nbsp;in&nbsp;person.&nbsp;During this online&nbsp;shopping&nbsp;process, however, support is&nbsp;still&nbsp;always available should the consumer decide to engage with a&nbsp;salesperson from the dealership.&nbsp;&nbsp;<\/p>\n\n\n\n<p>With&nbsp;this&nbsp;shift in the car buying&nbsp;process,&nbsp;there\u2019s&nbsp;an&nbsp;amazing&nbsp;opportunity for dealers who are ready to&nbsp;supplement and&nbsp;transform their business&nbsp;by&nbsp;implementing&nbsp;true&nbsp;ecommerce&nbsp;into their operations&nbsp;to&nbsp;stand out from the competition.&nbsp;As we define true ecommerce today, it&nbsp;provides&nbsp;time savings for consumers and dealers through automation capabilities, allowing them to complete a&nbsp;full&nbsp;transaction from end-to-end.&nbsp;<\/p>\n\n\n\n<p>Through research at Cox Automotive, we discovered two growing segments of car shoppers:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Efficient Independents: Mostly open to buying completely online in the future and prefer test drives and purchase delivery.<\/li>\n\n\n\n<li>Guided Innovators: Have an increased want to start the car buying process online and seek website that allow them to complete more purchase steps online.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>75% of these&nbsp;of these two&nbsp;fastest\u2013growing car shopper segments&nbsp;said within the next&nbsp;five&nbsp;years they would buy ENTIRELY online.&nbsp;The shoppers in these segments are forward-thinking and&nbsp;already \u2013&nbsp;do 10 out of the typical 13 car\u2013buying steps online.&nbsp;Preparing for these&nbsp;consumers who will make up&nbsp;most of&nbsp;future&nbsp;car shoppers is crucial to ensuring your dealership is not left behind.&nbsp;<\/p>\n\n\n\n<p>In this&nbsp;two-part blog&nbsp;series,&nbsp;you will&nbsp;get a glimpse of what&nbsp;we&nbsp;think the current state of&nbsp;automotive&nbsp;ecommerce&nbsp;is, and&nbsp;what dealers should know about what the road forward could look like for consumers buying cars completely online.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">WHERE IS AUTOMOTIVE ECOMMERCE TODAY?<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>Ecommerce is an emerging&nbsp;channel, and&nbsp;we&nbsp;are seeing&nbsp;consumers&nbsp;who&nbsp;want to go through the&nbsp;car&nbsp;buying&nbsp;process&nbsp;entirely online,&nbsp;from&nbsp;end-to-end,&nbsp;with minimal&nbsp;handholding&nbsp;from&nbsp;retailers.&nbsp;The&nbsp;convenience and flexibility&nbsp;that&nbsp;it&nbsp;offers&nbsp;is&nbsp;an attractive&nbsp;option&nbsp;for consumers.<\/p>\n\n\n\n<p>But&nbsp;while&nbsp;industry&nbsp;ecommerce adoption&nbsp;is still in the beginning stages, dealers who want to get ahead of the curve can be strategic&nbsp;by&nbsp;investing where&nbsp;consumers are going to be in the mid to long\u2013term.<\/p>\n\n\n\n<p>Dealers who are ready to embark on this journey need to&nbsp;commit to the long&nbsp;game,&nbsp;so their ecommerce&nbsp;business is built in a way&nbsp;that\u2019s&nbsp;sustainable.&nbsp;If a&nbsp;dealer is expecting&nbsp;30%&nbsp;of their sales to come from&nbsp;full&nbsp;ecommerce&nbsp;straight&nbsp;out the gate,&nbsp;those dealers&nbsp;are&nbsp;probably not&nbsp;in the position to really start&nbsp;seriously&nbsp;investing.&nbsp;Dealers should strive to be trusted sources&nbsp;as this ecommerce journey continues to ramp up, but need to recognize that the economics of this are going to improve over time.&nbsp;Thus,&nbsp;understanding&nbsp;the&nbsp;importance&nbsp;of getting&nbsp;into&nbsp;the ecommerce&nbsp;space sooner,&nbsp;rather&nbsp;than&nbsp;later,&nbsp;will&nbsp;make the difference between the dealerships who come out on top.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">WHY IS IT IMPORTANT FOR DEALERS TO EXECUTE AN OMNICHANNEL APPROACH THAT STILL INVOLVES THE IN-STORE EXPERIENCE?<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>There will be a growing segment of your business&nbsp;that\u2019s&nbsp;going to&nbsp;be truly&nbsp;100% online&nbsp;and&nbsp;this segment will continue to&nbsp;grow over time.&nbsp;However, through our learnings in 2023&nbsp;the majority of&nbsp;consumers prefer an omnichannel approach to car buying.&nbsp;Omnichannel&nbsp;is considered that idea of&nbsp;back and forth&nbsp;during&nbsp;different points in the transaction&nbsp;from online to in\u2013store, and often back online again. Omnichannel&nbsp;ecommerce&nbsp;can be a&nbsp;bridge that&nbsp;dealers&nbsp;could&nbsp;use&nbsp;to get&nbsp;more and more&nbsp;experience&nbsp;at&nbsp;guiding&nbsp;consumers from online to&nbsp;in\u2013store&nbsp;at&nbsp;different&nbsp;parts&nbsp;of the journey.&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p>But&nbsp;omnichannel is also&nbsp;the destination itself.&nbsp;Even when ecommerce is at&nbsp;maturity, we expect&nbsp;the majority of&nbsp;transactions to still involve&nbsp;the&nbsp;in-store experience in some&nbsp;way.&nbsp;This&nbsp;means that the majority&nbsp;of consumers are still omnichannel, and dealers still need to focus on the in\u2013store experience&nbsp;and&nbsp;creating&nbsp;a seamless journey no matter where the consumer&nbsp;finalizes&nbsp;the deal.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">WHAT ROLE DO DIGITAL RETAILING TOOLS PLAY IN BECOMING ECOMMERCE READY?<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>Digital retailing allows dealers to help consumers do pieces of the car buying experience online.&nbsp;Through this process&nbsp;the consumer starts the deal online and&nbsp;can take&nbsp;the deal&nbsp;from&nbsp;a credit app submission&nbsp;to&nbsp;sometimes even a credit decision,&nbsp;but at that point,&nbsp;dealership personnel will need to engage with the consumer to usher him or her through the deal\u200b.&nbsp;So, while technology plays&nbsp;a big role, the&nbsp;digital retailing&nbsp;process is&nbsp;largely supported&nbsp;by a person in the dealership.&nbsp;While digital retailing is not true\/full ecommerce, implementing DR tools is a step in the direction of ecommerce. which is just pulling in&nbsp;more and more&nbsp;pieces of the transaction online.&nbsp;<\/p>\n\n\n\n<p>Digital retailing&nbsp;helps lay the&nbsp;groundwork&nbsp;without&nbsp;requiring major channel&nbsp;strategy shifts&nbsp;because at the end of the&nbsp;day, the&nbsp;consumer still wants to come in to complete the deal so it&nbsp;can&nbsp;mirror the existing&nbsp;in-store approach.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">WHAT OTHER THINGS SHOULD DEALERS BE FOCUSED ON TO PREPARE FOR THE ECOMMERCE ROAD FORWARD?<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>We will dive deeper into these focus areas in the next blog, but there are three areas dealers should focus on:&nbsp;&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Building trust and rapport through content:&nbsp;<\/strong>Provide content about cars that answers consumers\u2019 questions before they ask.&nbsp;&nbsp;<\/li>\n\n\n\n<li><strong>Establish a mature review program:&nbsp;<\/strong>Proactively collect reviews, and showcase high-quality, detailed reviews\u2014providing incentives where it makes sense.&nbsp;&nbsp;<\/li>\n\n\n\n<li><strong>Prepare for a data-intense world:&nbsp;<\/strong>Partnering with companies like Cox Automotive that help uncover the full picture of the consumer.&nbsp;&nbsp;<\/li>\n<\/ol>\n\n\n\n<p><\/p>\n\n\n\n<p>These three focus areas will lay the foundation dealers need to fully adopt an automotive ecommerce world.&nbsp;And there are&nbsp;so&nbsp;many benefits of being an early adopter in this space versus taking a backseat approach. These&nbsp;are things that you must start doing today to be ready&nbsp;for what will be an expectation down the road.&nbsp;&nbsp;<\/p>\n\n\n\n<p>In our next blog, we will walk through&nbsp;the&nbsp;key focus areas.&nbsp;We will explain the&nbsp;value of building an extensive set of positive reviews online,&nbsp;creating relevant content&nbsp;and maximizing your data&nbsp;so&nbsp;you&nbsp;can start&nbsp;working out the process kinks while scale is&nbsp;relatively small. This will&nbsp;ultimately help&nbsp;you&nbsp;appeal to a new segment of customers&nbsp;and&nbsp;reach&nbsp;new markets.&nbsp;&nbsp;<\/p>\n\n\n\n<p>In conclusion, ecommerce is a preferred pathway for a growing group of car shoppers&nbsp;and dealers should be thoughtful and patient with their implementation&nbsp;of these new tools.&nbsp;It\u2019s&nbsp;important to remember that ecommerce&nbsp;shouldn\u2019t&nbsp;be a siloed part of your strategy. It should be integrated into your existing channels to work cohesively, not with separate teams,&nbsp;brand&nbsp;and inventory.&nbsp;This shift will not happen overnight but is a long-term strategy that will pay off with&nbsp;diligent preparations and&nbsp;consistency.&nbsp;<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The idea of consumers buying their&nbsp;vehicle&nbsp;completely&nbsp;online&nbsp;used to sound like a crazy idea, right? As the automotive industry has evolved\u2014and quite frankly online shopping in general\u2014the desire and capability to buy vehicles completely online has taken&nbsp;the automotive industry by storm.&nbsp;Let\u2019s&nbsp;take Mark.&nbsp;He saw an&nbsp;ad&nbsp;for his&nbsp;dream car,&nbsp;started searching online and&nbsp;found it at&nbsp;his local&nbsp;Honda&nbsp;dealer website.&nbsp;After he personalized his payment,&nbsp;he&hellip; <a class=\"moretag\" href=\"https:\/\/www.coxautoinc.com\/retail\/ecommerce-learning-center\/where-is-automotive-ecommerce-today\/\">Read More<\/a><\/p>\n","protected":false},"author":47,"featured_media":3878,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14],"tags":[],"class_list":["post-3891","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-thought-leadership"],"acf":{"slider_banner_image":false,"featured_in_learning_center_landing_page_slider":false,"show_in_feed":["yes"],"reading_time":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Where Is Automotive Ecommerce Today?\u00a0 - Cox Automotive Retail<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.coxautoinc.com\/retail\/ecommerce-learning-center\/where-is-automotive-ecommerce-today\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Where Is Automotive Ecommerce Today?\u00a0 - Cox Automotive Retail\" \/>\n<meta property=\"og:description\" content=\"The idea of consumers buying their&nbsp;vehicle&nbsp;completely&nbsp;online&nbsp;used to sound like a crazy idea, right? As the automotive industry has evolved\u2014and quite frankly online shopping in general\u2014the desire and capability to buy vehicles completely online has taken&nbsp;the automotive industry by storm.&nbsp;Let\u2019s&nbsp;take Mark.&nbsp;He saw an&nbsp;ad&nbsp;for his&nbsp;dream car,&nbsp;started searching online and&nbsp;found it at&nbsp;his local&nbsp;Honda&nbsp;dealer website.&nbsp;After he personalized his payment,&nbsp;he&hellip; Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.coxautoinc.com\/retail\/ecommerce-learning-center\/where-is-automotive-ecommerce-today\/\" \/>\n<meta property=\"og:site_name\" content=\"Cox Automotive Retail\" \/>\n<meta property=\"article:published_time\" content=\"2023-12-14T12:13:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-05-08T11:57:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.coxautoinc.com\/retail\/wp-content\/uploads\/sites\/20\/2024\/05\/ecommerce-blog-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2121\" \/>\n\t<meta property=\"og:image:height\" content=\"1414\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Tomasz Nowakowski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tomasz Nowakowski\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.coxautoinc.com\/retail\/ecommerce-learning-center\/where-is-automotive-ecommerce-today\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.coxautoinc.com\/retail\/ecommerce-learning-center\/where-is-automotive-ecommerce-today\/\"},\"author\":{\"name\":\"Tomasz Nowakowski\",\"@id\":\"https:\/\/www.coxautoinc.com\/retail\/#\/schema\/person\/cfee9aea5fca12343b4548ab55e44247\"},\"headline\":\"Where Is Automotive Ecommerce Today?\u00a0\",\"datePublished\":\"2023-12-14T12:13:38+00:00\",\"dateModified\":\"2024-05-08T11:57:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.coxautoinc.com\/retail\/ecommerce-learning-center\/where-is-automotive-ecommerce-today\/\"},\"wordCount\":1521,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.coxautoinc.com\/retail\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.coxautoinc.com\/retail\/ecommerce-learning-center\/where-is-automotive-ecommerce-today\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.coxautoinc.com\/retail\/wp-content\/uploads\/sites\/20\/2024\/05\/ecommerce-blog-1.jpg\",\"articleSection\":[\"Thought Leadership\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.coxautoinc.com\/retail\/ecommerce-learning-center\/where-is-automotive-ecommerce-today\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.coxautoinc.com\/retail\/ecommerce-learning-center\/where-is-automotive-ecommerce-today\/\",\"url\":\"https:\/\/www.coxautoinc.com\/retail\/ecommerce-learning-center\/where-is-automotive-ecommerce-today\/\",\"name\":\"Where Is Automotive Ecommerce Today?\u00a0 - 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