Ecommerce Learnings from an Early Adopter

Ecommerce Retailer Study

Ecommerce Learnings from an Early Adopter

Introduction As automotive retailers increasingly look to add ecommerce to their automotive retailing strategy, the early adopters in this space are blazing the trail. They have learned a lot and continue to adapt as they learn.

In this case study, we’ll look at an early adopter of Cox Automotive Ecommerce and explore some of their key learnings that will help other retailers hit the ground running.

Across the industry, the online pre-owned vehicle purchasing channel continues to excel in delivering an industry-leading customer experience. A little over a year ago, one of our early adopters launched ecommerce with a commitment to redefine the pre-owned car-buying experience by putting the driver before everything else.

A tech-savvy consumer who sees little to no need for in-person interaction is looking for experience placing an order for a used vehicle that’s similar to ordering a new vacuum cleaner on Amazon.

With ecommerce, that customer can browse available models online, research features and capabilities, make their selection, process a trade-in, apply for financing, complete the purchase paperwork, and expect their car to be delivered in their driveway as soon as 48 hours from completion.

Cox Automotive Inc.

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Ecommerce Retailer Study

‘‘

The Results AI in automotive saves time.

Cox Automotive is using AI to make our automotive industry software solutions, advertising products and

This experience was more automated and I was able to do more things online rather than having to return to the dealership constantly to fill out paperwork and take looks at cars. I was able to do virtual tours and do some paperwork online. It just saved a lot of time and it was very convenient compared to my last experience.”

marketplaces smarter and to help customers make faster, more profitable business decisions in real time.

AI is already embedded in many products, including personalized online shopping experiences and custom marketing campaigns, ecommerce automation, customer relationship management insights, vehicle valuations, vehicle imaging and damage detection.

Artificial intelligence makes the process much easier and more efficient for our ecommerce retailers and consumers and it is fundamental to driving ecommerce success.

Employing AI-enabled tools increases the impact and effectiveness of their digital marketing and brand-building efforts in several ways: • The AI virtual business development center and 24/7 lead response system can help guide potential customers through the pre-sales process, leading up to the scheduling of an appointment.

- New Buyer, Moderate Digital

The Cox Automotive Ecommerce solution empowers dealers to optimize rates for consumer acceptance and

Cox Automotive Inc.

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Ecommerce Retailer Study

dealer profitability, select the appropriate lender, and route the customer to the proper channel.

• A utomated Lender Selection captures information about customers seeking financing and the vehicle they are buying and recommends a bank using an automated credit matching algorithm.

• A n AI-enabled algorithm looks at the consumer, the vehicle, the dealership, and the customer’s purchasing style to determine the financing offer that the consumer is most likely to accept. The result is also based on the best deal for the consumer and retailer profitability.

On average, retailers save 21 min. of labor time per deal by using Finance Automation

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Our early adopters are leading the way in redefining the

%

customer experience for pre-owned vehicle purchasing and are leveraging artificial intelligence to do it.

of the ecommerce retailer’s sales were electric vehicles (EVs)

EV consideration is growing, and new EV buyers are open to a purchase experience that is mostly digital.

24% of the ecommerce retailer’s sales were electric vehicles (EVs) and the most automated transactions were

Cox Automotive Inc.

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Ecommerce Retailer Study

Moving Forward

primarily EV purchases. Proceeding with the assumption that EV consumers are more comfortable with the online car-buying

According to our consumer research, half of buyers do at

process.

least one step of the purchase experience online today.

According to a recent Cox Automotive’s Path to EV Adoption

This is with 43% using an omnichannel experience of

study, the percentage of consumers considering Battery Electric

shopping both in-person and online, and 6% completing

vehicles has increased 13% since last year.

their entire transaction online. These numbers will continue to grow.3

As a result, the retailer increased their inventory of electric vehicles earlier this summer and continues to closely monitor

These real-world learnings based on consumer demand,

these types of transactions to identify any trends and efficiencies.

coupled with AI data and integration of automotive omnichannel strategies will allow consumers to seamlessly

Research also suggests that EV sales could have a

navigate between physical showrooms, virtual showrooms,

positive impact on a retailer’s back-end profit center, with

and online platforms. For example, a customer can start their online research at home, visit the physical showroom

57% of EV buyers preferring dealerships for their maintenance needs.1

in person, and complete the transaction online, all within the same platform.

This holistic approach will streamline the buying process

Preferred EV Maintenance Location Franchise Dealer Independent Dealer

Do it yourself (DIY)

experience across all channels. Overall, this will further

41%

enhance the online vehicle purchasing experience.

36%

Mobile service (comes to you) Independent repair facility

and provide a consistent and personalized customer 57%

29% 21% 1. 2023 Cox Automotive Path to EV Adoption: Consumer and Dealer Perspectives

Finally, in 2023 our ecommerce data also shows that diesel

2. 2023 CAI Ecommerce Data

and electric vehicles have a higher average gross per unit (GPU)

3. Cox Automotive Car Buyer Journey – 2023

when sold via an ecommerce site compared to a brick-and-mortar sold location.2

Cox Automotive Inc.

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Ecommerce Retailer Study

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