I know we, and many dealers, use eBay for wholesale vehicles and "unique" vehicles, but what are your thoughts on posting our entire used car inventory (75-100 cars) on eBay? I know it has been successful (i.e. Texas Direct); however, I am not sure of many franchise dealers that do it. What do you guys think?
Using eBay for more than just wholesale
- Thread starter dedmonds
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- May 1, 2006
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- Alex
That would be an expensive shot in the dark to just throw all the inventory up there. We've toyed with the idea on a few occasions, but laid off based on prior attempts with more common vehicles that didn't even get a nibble.
Think about it like this:
50 cars in stock, roughly (very rough) $50 per listing* = $2,500
If we figure the average lead costs $20, then you'd have to receive 125 inquiries on your eBay listings to keep up with the regular third party lead average price. But if you figure an 8% closing ratio (average for third party leads) on 125 leads, then you'd sell 10 cars. That would equate to $250 of advertising spend to car sold which isn't terrible. However, you also have to ask yourself if you're ready to handle that number of inquiries in a 7 to 10 day period.
That's just looking at the hypothetical numbers. eBay is a bit of a different animal than your typical third party lead source, so it is really anyone's guess as to how well you'll do.
*eBay's fees vary based on whether you sold something or not, so I'm basically pulling this number out the wazoo: http://pages.ebay.com/help/sell/motorfees.html
Think about it like this:
50 cars in stock, roughly (very rough) $50 per listing* = $2,500
If we figure the average lead costs $20, then you'd have to receive 125 inquiries on your eBay listings to keep up with the regular third party lead average price. But if you figure an 8% closing ratio (average for third party leads) on 125 leads, then you'd sell 10 cars. That would equate to $250 of advertising spend to car sold which isn't terrible. However, you also have to ask yourself if you're ready to handle that number of inquiries in a 7 to 10 day period.
That's just looking at the hypothetical numbers. eBay is a bit of a different animal than your typical third party lead source, so it is really anyone's guess as to how well you'll do.
*eBay's fees vary based on whether you sold something or not, so I'm basically pulling this number out the wazoo: http://pages.ebay.com/help/sell/motorfees.html
- May 1, 2005
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- Jeff
eBay is no doubt a different marketplace no matter how hard they have attempted to be more like an AutoTrader or Cars.com.
eBay has IMO been unsuccessful in their "ebay local" due to a lack of initial support and marketing from the launch.
I was a beta dealer for their local product and it quickly proved to be unsuccessful. I have a few dealers now still lingering on the product with basically no results.
However, with all that being said..if you are going to become an eBay dealers like Texas Direct; live it, breath it, sleep it and eat it..I have no doubt you could find success in it.
Ahhh...I remember one of my dealers begging me to go on eBay. I told him what I said above. You need to have the person/s at the dealer that are willing to work the product and take full ownership. You can't half ass it and think your going to be successful. It's not going to happen. 3 months later after all my work to get them up and running on eBay..they're no longer posting cars on ebay. All the energy that could had been exerted into other avenues of conversion and sales.
You can always jump in and give it a shot and see what you can work out of it while keeping Alex's response in mind as well. eBay is a lot of work...are there other areas that you can focus on while gaining the same results for less effort and money? Only you can answer that question.
eBay has IMO been unsuccessful in their "ebay local" due to a lack of initial support and marketing from the launch.
I was a beta dealer for their local product and it quickly proved to be unsuccessful. I have a few dealers now still lingering on the product with basically no results.
However, with all that being said..if you are going to become an eBay dealers like Texas Direct; live it, breath it, sleep it and eat it..I have no doubt you could find success in it.
Ahhh...I remember one of my dealers begging me to go on eBay. I told him what I said above. You need to have the person/s at the dealer that are willing to work the product and take full ownership. You can't half ass it and think your going to be successful. It's not going to happen. 3 months later after all my work to get them up and running on eBay..they're no longer posting cars on ebay. All the energy that could had been exerted into other avenues of conversion and sales.
You can always jump in and give it a shot and see what you can work out of it while keeping Alex's response in mind as well. eBay is a lot of work...are there other areas that you can focus on while gaining the same results for less effort and money? Only you can answer that question.
- Apr 13, 2009
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- U
Before jumping in... you can also try local for free... on 6 listings...
for national... set the reserve high...and contact the highest bidder...
and pay only $7.00 per listing.
for national... set the reserve high...and contact the highest bidder...
and pay only $7.00 per listing.
I see Jeff has mentioned Texas Direct , so I've included the link. They are the number one motor company on eBay. They totally kick butt and sell retail.
Just looking at their listings can teach you a lot ! Fantastic, well staged photo's are the 1st thing you notice.
Each listing is assigned a salesperson. If you click on the feedback # currently( 3110) and you can see alll the vehicles sold and the amount they sold for.
126 sales in 1 month (90% vehicles).
eBay Store - Texas Direct Auto: Trucks, Large SUV, Luxury Car
Just looking at their listings can teach you a lot ! Fantastic, well staged photo's are the 1st thing you notice.
Each listing is assigned a salesperson. If you click on the feedback # currently( 3110) and you can see alll the vehicles sold and the amount they sold for.
126 sales in 1 month (90% vehicles).
eBay Store - Texas Direct Auto: Trucks, Large SUV, Luxury Car
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I wanna do a better job with eBay but we are struggling with it. They should have a one price fee for listing all inventory nationally not just locally. As for traffic, its hard to argue that eBay doesn't get us exposure when you look at stuff like this:
Top 10 Automotive-Classifieds Websites - June 2009
Top 10 Automotive-Classifieds Websites - June 2009
- Apr 7, 2009
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Andy,
6:1 eBay over AT?
I don't have proof, but my gut is telling me that this chart is NOT just auto classifieds, it's mostly auto parts traffic.
6:1 eBay over AT?
I don't have proof, but my gut is telling me that this chart is NOT just auto classifieds, it's mostly auto parts traffic.
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- Apr 7, 2009
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Dustin,
I know eBay like Jeff Kershner knows eBay. We both were in eBay early, crushing the ball out of the park and watched it slowly fizzle out. I was a featured speaker for eBay Motors at NADA in 04. Here are my observations.
LOCATION:
eBay retail success needs Geography.
I see regional eBay "hot spots" like Texas and Florida.
I see proximity to a mega-city as another Hot Spot.
I get the Florida/eBay/vacation marketing connection.
Why Texas? Texas stands out so strongly above all other states that it puzzles me to this day. I award this phenom to Texas Culture. ..." Texas can make it without the United States, but the United States can't make it without Texas."
AD DOLLAR PER CAPITA
eBay’s rates are the same whether you are in Idaho or in Philly. So, it's easy to see that eBay success and Mega-City proximity are directly related. If your store is within an hour's drive of a major city, your eBay ads have extra value to a searcher that discovers you are "local". A great business model I frequently see is exactly what Jeff K. was referring to. I frequently see a small, friendly dealer (usually an independent) near a major market that specializes in something.
SALES SKILLS:
eBay sales are telephone driven. Who ever takes that call has to demonstrate AUTHORITY over the product and the process. This is the secret weapon of eBay sales. This is why small independents succeed and this is why Texas Direct has a rep assigned to the unit.
I know eBay like Jeff Kershner knows eBay. We both were in eBay early, crushing the ball out of the park and watched it slowly fizzle out. I was a featured speaker for eBay Motors at NADA in 04. Here are my observations.
LOCATION:
eBay retail success needs Geography.
I see regional eBay "hot spots" like Texas and Florida.
I see proximity to a mega-city as another Hot Spot.
I get the Florida/eBay/vacation marketing connection.
Why Texas? Texas stands out so strongly above all other states that it puzzles me to this day. I award this phenom to Texas Culture. ..." Texas can make it without the United States, but the United States can't make it without Texas."
AD DOLLAR PER CAPITA
eBay’s rates are the same whether you are in Idaho or in Philly. So, it's easy to see that eBay success and Mega-City proximity are directly related. If your store is within an hour's drive of a major city, your eBay ads have extra value to a searcher that discovers you are "local". A great business model I frequently see is exactly what Jeff K. was referring to. I frequently see a small, friendly dealer (usually an independent) near a major market that specializes in something.
SALES SKILLS:
eBay sales are telephone driven. Who ever takes that call has to demonstrate AUTHORITY over the product and the process. This is the secret weapon of eBay sales. This is why small independents succeed and this is why Texas Direct has a rep assigned to the unit.
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- Apr 7, 2009
- 4,626
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- 10
- First Name
- Joe
FORGET eBAY, its vBay.
-When was the last time you saw an eBay listing in a natural search?
-When was the last time you saw an eBay listing in a paid search?
eBay use to be EVERYWHERE. Paid and natural. Not any longer. eBay is Vanishing. I call it vBay.
(note: this is the danger that AutoTrader.com and Cars.com has, God help them if Google decides to re-arrange its algos... Dale Pollak take note!!)
-When was the last time you saw an eBay listing in a natural search?
-When was the last time you saw an eBay listing in a paid search?
eBay use to be EVERYWHERE. Paid and natural. Not any longer. eBay is Vanishing. I call it vBay.
(note: this is the danger that AutoTrader.com and Cars.com has, God help them if Google decides to re-arrange its algos... Dale Pollak take note!!)
Joe:
You are probably right about the parts classifieds skewing the numbers in that chart. I didn't think of that.
I also agree with almost all of your comments about eBay and who is successful selling on eBay.
Why doesn't eBay offer a flat fee option to list our entire inventory on their site for all and not just those in our market? I think they would get more dealers involved if they did something like that.
Lastly, you are dead on when you say eBay is about the phone skills and the person on the phone answering all questions, knowing the product, and doing the deal from start to finish. Most dealers are not set up that way and sales managers are too busy doing other things to pay attention to eBay. The guys I see being successful on eBay have one person dedicated to eBay sales and empowered to make decisions and do deals. Most people think eBay is just a place for "bottom feeders" and that might be the case but some people have done really well on eBay and made pretty good money. Look at Walter's Elkland Chevrolet in rural rural Northern PA. That is one example of a store that refutes your argument about needing to be close to a big city. They are literally in the middle of no where. That is the only thing I might disagree with you on. Other than that, you are right on.
You are probably right about the parts classifieds skewing the numbers in that chart. I didn't think of that.
I also agree with almost all of your comments about eBay and who is successful selling on eBay.
Why doesn't eBay offer a flat fee option to list our entire inventory on their site for all and not just those in our market? I think they would get more dealers involved if they did something like that.
Lastly, you are dead on when you say eBay is about the phone skills and the person on the phone answering all questions, knowing the product, and doing the deal from start to finish. Most dealers are not set up that way and sales managers are too busy doing other things to pay attention to eBay. The guys I see being successful on eBay have one person dedicated to eBay sales and empowered to make decisions and do deals. Most people think eBay is just a place for "bottom feeders" and that might be the case but some people have done really well on eBay and made pretty good money. Look at Walter's Elkland Chevrolet in rural rural Northern PA. That is one example of a store that refutes your argument about needing to be close to a big city. They are literally in the middle of no where. That is the only thing I might disagree with you on. Other than that, you are right on.
