Whether you are a struggling car dealer, or a highly successful one, you are looking to increase your sales. I have one word for you, "EBAY". Yes that is right, eBay!
Here are some startling facts about selling cars on eBay:
If you are a car dealer, these are inescapable facts. If you have tried selling on eBay Motors before and results were less than satisfactory I can almost guarantee the reason is you did not do it correctly.
Spending time as an eBay Trading Assistant, selling in almost every major category on eBay, one thing I have found to be the ultimate truth about listing on eBay is that is there is no one selling strategy that works in every category. Nothing exemplifies this more than eBay Motors.
The reason I mention this is that many dealers (either themselves or one of their employees) use eBay in their personal life. So selling cars on it should be the same, right? WRONG! What they fail to realize is eBay Motors is a little different than eBay.com.
Some of the terminology is different, and some things, such as Feedback and photos, carry much more weight than an average eBay.com listing.
Here are five areas of major importance, where most car dealers make mistakes.
1. Titles, Keywords and Item Specifics - The differences between Motors and eBay core
2. Photos - you need 30 and need to make each one count
3. Descriptions - three elements of great descriptions
4. Duration - How it works with vehicles
5. Buy It Now and Best Offer - How to use these to your advantage
#1 - Titles, Keywords, and Item Specifics
If you already sell on eBay you likely know the importance of good keywords, and a good title. eBay Motors is a little different.
First, do a search on eBay Motors for a "2005 Corvette". In the left-hand column, click the "Cars and Trucks" link to separate the vehicles from the parts listings. Now, in your search results, you'll see a number of 2005 Corvettes. Without looking, I can tell you what you'll see. Notice each listing has "Chevrolet :Corvette" in black.
Then below that, you'll see (in blue) a title. I guarantee many of the titles you see will also have 2005, Corvette, or Chevrolet in them.
That is a mistake on the seller's part. It is unnecessary duplication of keywords and wastes precious space that could be used to describe the car.
Here is the anatomy of your listing with regard to searches on eBay. When you first list a vehicle, you must choose a make (e.g. Chevrolet) and a model (e.g. Corvette). Those words will now automatically categorize the vehicle as well as provide your first two searchable terms or keywords. You do not need to repeat them again in your title. Also, the year is already included. eBay knows if someone searches for a '05 Corvette, they mean a 2005. You don't need to repeat the year in any form within the title.
Titles and Keywords - So for our example, we're using "Chevrolet Corvette," now we need to create a title. Your title should include the most desirable features of the vehicle. Think like a buyer. Do your research as you would for an eBay listing. What are the top selling options for your car.
For example, "navigation", "hybrid", and "diesel" are all things buyers are specifically looking for. You need to make sure these things get in the description. Also model variations, engines, color, and even the tires.
Many bargain hunters search the term "No Reserve". Most vehicles are listed with a Reserve price, so sorting out the ones with no reserve is a quick and easy thing for buyers to use. So if you list vehicles without a reserve, make sure to include "No Reserve" in the title.
Item Specifics - Once your title is done, you'll need to add item specifics. The more item specifics you include in your listing, the more likely someone will find what they're searching for. Besides that, you'll benefit by cutting down on unnecessary questions from the shoppers. Some questions can be a real time-waster. Try to anticipate questions, and cover them in the listing. Make doubly sure you accurately record the options and features.
#2 -Take lots of Pictures
Photos sell the vehicle more than any other single thing in a car listing. However, make sure there is a reason for each photo you show. Each one should give the shopper a little more information.
You have two objectives when taking photos:
1. For the buyer's benefit - Show the vehicle as it really is
2. For the seller's benefit - Put the best foot forward, make it look nice, but be honest
Those objectives are listed in order of priority as a seller. Whatever you do, do not try to make the vehicle look better than it is. Make sure it's clean inside and out. Show damage clearly. Be honest.
Take pictures of the bad things along with the good, and avoid doctoring the photos with a photo editor. What you see is what you get.
Make sure your background is professional looking. It's okay to show the dealership in the photos, but be careful about having other cars in the photo other than the one you are selling.
Take a picture that any perspective buyer walking on your lot looking at the car might even take a moment to concentrate on. Take both interior and exterior shots. Take pictures of the odometer, the seats, the trunk, the doors, everything.
If you show damage on a vehicle, make sure to include something to show scale. You can use a wooden ruler, or even a dollar bill near the damage to give the shoppers an accurate idea of the size of the damage.
#3 - Descriptions
Three ways to make them sell.
If you're used to listing on eBay and writing descriptions for odds and ends from around the house, you probably just try to list the facts. That works for eBay.com - for eBay
Motors you'll need a little more.
Keep three elements in mind, and you'll have a formula you can use to easily write descriptions for vehicles. Potential buyers want three things. Stories, facts, and honesty. People love stories. Where did this vehicle come from? Is it from a person who purchased it new at this dealership? If so, say it. Repeat customers are a credit to you. A story is not always necessary but it helps. You won't have one for every vehicle, but when you do, throw a little background in the description. Just be careful to make it short and crisp. Shoppers don't like wordy descriptions.
A second thing potential buyers want are the facts. Tell everything you can about the car.
Finally, be honest. People hate it when you overrate your vehicle. It is truly a rare occasion to find a used vehicle that is in "Excellent" condition. So don't rate your used cars that way.
#4 - Duration - How it works with vehicles
You may think you have the whole duration thing down. It seems like the longer the better, since more people will see your listing. However, that is not always the case with vehicles.
Consider the following scenarios:
#1 - You're listing a 2003 Ford Taurus. They are a dime a dozen. It's a former rental car and there are over 100 on eBay Motors. This car won't sell for much, but you may be able to sell three in a week if the price is right.
#2 - The dealer has just taken in a 1990 Buick Century with 4,000 original miles. It was owned by a little old man in town, and he hardly ever drove after his wife passed away.
There is nothing else like it on eBay, and likely won't
be anytime soon. What duration will you choose for the scenarios above? Seven
days? Three days? Ten?
Your competition is going to have Ford Taurus's on
eBay. Let's say you both begin your listing on Sunday. You for seven days, your
competitor for three. They are both auction listings, priced to sell. When the
three day listing ends, the competitor has a sale, you still have four days. He
lists another Taurus right away, for another three days. Day six - Competitor 2,
You 0
(with one day to go). Now he lists another Taurus, as your first one is about to end his third vehicle is competing with you. Get the point?
If you have a common vehicle, and you can list it for a good price, use a shorter duration. Move more units. That's the point.
Scenario #2 is a different story. Since this low mileage car is a one-of-a-kind vehicle, you can list for a longer duration. In fact you want a longer duration. The more eyeballs that see this vehicle, the better. In fact, if it's interesting enough, it may even get included in some internet forum discussions which will drive even more traffic to your listing. It's very unlikely that your competition will be able to list a similar vehicle, so in special cases, you may even want to consider a ten day listing. If you do that, run it over two weekends for maximum exposure.
The inventory determines the duration. Most vehicles will fall in the five to seven day range. For special cases use the shorter, or longer durations.
Timing
A common question is "What is the best time to launch/end my listing?" Consider the vehicle. If you're listing a long bed pickup just perfect for a contractor, would you have your listing end at 2:30PM on a Tuesday?
Q. Where do you think your best potential customer would be at that time?
A. Working! Not bidding on eBay Motors.
Sunday evening is the busiest time on eBay and eBay Motors. While that's a good time to end your listing, it's not always the best. Do your research using eBay's "Completed Items" feature, and see when vehicles similar to yours have sold.
#5 Buy It Now and Best Offer
There are two eBay products that dealers have not properly learned to use. Both can be powerful selling tools when used properly. Buy It Now and Best Offer.
A Buy It Now (BIN) price can be added to your auction listing allowing a buyer to make an instant purchase. Many dealers set the BIN price at full retail, while their reserve price is significantly lower. The problem is since shoppers cannot see the reserve price, they imagine the reserve must be just below the BIN price.
Having the Buy It Now set too high sends shoppers the wrong signal. They figure if the BIN price is set high, the reserve must be set high too. And they move on.
Lets say you bought the vehicle wholesale. Then you cleaned up the vehicle, and added an even $1000 to your cost. Set that as your reserve price. Then add $500 to the reserve price and set your Buy It Now price there.
Regardless of how much the car was worth, you will make at least $1000 on the car, and if the market said the car was worth more, bidding would drive it up. This is an excellent strategy.
The Buy It Now price will be so reasonable that many buyers will use it and you will sell units fast. However, some shoppers will think that since the BIN price is so low, the reserve price must be even lower. They choose to bid on the vehicle instead of using the BIN in hopes of getting a steal. They will bid until they meet the reserve price. This exposes the reserve price to other shoppers, and causes the BIN price to disappear. Once they see the low reserve price, they bid on the vehicle too.
You will be surprised how often this strategy will result in a sale that was even higher than the original Buy It Now price.
Best Offer
This option adds the "haggle" back into the online car deal. The dealer can specify a price, and let shoppers know they will consider offers. The offers are submitted online through eBay, and the dealer may set a reasonable threshold below which offers will be automatically rejected.
This is also a great tool to start a dialogue with potential customers.
Now is eBay the one and only strategy I can offer you? Absolutely not. Contact me for some other great ideas I have for you.
Jim Orr
888-738-6806