eBay Motors and General Motors Promotion

[Jeff Kershner]

eBay Motors and General Motors today announced the launch of a first‐of‐its‐kind promotion between a major auto manufacturer and a global online automotive marketplace that allows consumers to ‘click and buy’ new cars and trucks online from participating California dealers selling Buick, Chevrolet, GMC and Pontiac brands.


The promotion, which runs from August 11th through September 8th, drives automotive shoppers to an eBay Motors and GM brand‐specific web site located at http://gm.ebay.com to browse dealer‐managed vehicle inventory offerings. Involving more than 225 California dealerships, consumers can browse hundreds of California dealer online showrooms, ask questions, negotiate prices, and arrange financing and payment to purchase a new 2008, 2009 or select 2010 car, truck or crossover vehicle instantly online.

I posted the press release here.

Who agrees this is a STUPID IDEA?

 

[Alex Snyder]

eBay Motors | GM Program Our best cars. Your Best Offer. is the link - don't use www.

There isn't anything there yet anyway.....and yes Jeff, I agree on the Stupid idea too.

 

[Jeff Kershner]

Called that one ?!?!

Ebay generates interest but limited sales for GM

DETROIT -- General Motors Co.'s effort to sell new cars on eBay in California is generating interest but recording few sales on the Internet auction site.

In the first nine days of the program, GM dealers listed 16,228 vehicles on eBay and completed 45 sales, according to data available on the Web site.

But GM said the eBay exposure is prompting customers to visit dealerships to complete sales that aren't recorded on eBay.

"It's way too early in the program to have any concrete understanding of what's going on," said John McDonald, GM spokesman.

Mark Borjan, a Buick-Pontiac-GMC dealer, said he listed 70 vehicles on eBay and sold seven, but only one is recorded with eBay.... keep reading on Automotive News http://www.autonews.com/article/20090820/ANA08/908209990/1018

 

[mwisdom]

I know this post is a little old, but I was pretty bitter when I found out that GM was doing this program because I had been using Ebay Local with my new vehicle inventory for about 6 months. We thought it would be a good idea to include actual photos of our new inventory to set ourselves apart from the many dealers in our area that post stock photos on Ebay. It worked well, and I was worried it would become a trend nationally, "watering down" what we considered a clever new car Internet strategy. Even though it seems the response wasn't great from dealers, I would think that the ones that had success from this program have a successful Internet department in general, and vice versa.

 

[Brian Tucker]

No worries Mwisdom looks like they ended it
GM reportedly ending pilot eBay program, yet claims success — Autoblog

 

[Jeff Kershner]

GM claims success my A$$. You don't axe something that's a success.

That was destined for failure from the beginning. I love it when someone/vendor calls to tell me how much I'm missing when my dealers are not on ebay. Not saying it can't work..I was successful with ebay in the past but you need to have the right people/person to make it work.

 

[VJnator]

GM claims success my A$$. You don't axe something that's a success.

That was destined for failure from the beginning. I love it when someone/vendor calls to tell me how much I'm missing when my dealers are not on ebay. Not saying it can't work..I was successful with ebay in the past but you need to have the right people/person to make it work.

In my opinon eBay can work with the right cars - specialty cars like a BMW M6 convertible or the X5/X6 M series...where you know as a dealer a) you have to wait for the one customer coming through your door, who exactly likes the Alpine White M6 or b) post it on ebay in the national listing and possible get around 15-20 inquiries.

The typical "mass market car" like Ford, Toyota, Honda and of course GM (as manny others)will be sold on the lot as we know it. I can't see myself spending money on ebay listings; selling a vehicle with an average gross margin of $400-700.

Reading the Wall Street Journal yesterday on this topic, one message of a dealer stood out "...too many people submitted ridiculously low offers, forcing staff to sift through bids that were highly unlikely to resilt in sales...one person submitted a $2,500 offer for a $40,000 vehicle." Can you imagine the poor Internet Sales Manager preparing the Internet Sales Report showing all incoming leads and the results in closing ratio? I hope that did him not get fired!

The test was it to see how many people would consider to "prefer" a different buying experience, practically almost to 100% virtual. The same idea was hosted almost 3 years ago, when Mercedes Benz tried to sell their cars directly from the manufacturer website, no test-drive, car had to be build and when ready it was delivered via flat-bed truck to the customers front-door. Sound great and convenient but here, too - the customer refused to choose this channel and instead still likes to see, touch and smell his/her new car.

 

[Brian Tucker]

I thought the same thing Jeff- Headline should read - new G.M. Kills successful program but refuses to disclose how successful it really was. I am with you VJ on the inventory makes the sale- Subaru's always sold really good for me on Ebay.

 

[Alex Snyder]

As a traditional metaphor: The Internet is the phone on steroids. Yes, you can do an entire deal over the phone and FedEx the paperwork.....but how many people really want to do this?

I know, I've tried doing the virtual deal a few times now - it is just another sprinkle of a sundae topping on the meatball (see Seth Godin).