The Coronavirus pandemic has significantly impacted every industry by affecting modes of production, logistics, and human services, among others. Several businesses were forced to shut down due to a drastic decline in sales. On the bright side, eCommerce showed just how resilient it could be by not only surviving but thriving in the face of the outbreak.
Online transactions have been the backbone of the current market in terms of successful sales. The auto industry is no exception. Customers are more than willing to pay extra bucks to purchase cars and car parts over the internet despite the weak economy and substantial unemployment rate in the country. It’s understandable, especially since you can’t afford to risk visiting multiple dealerships just to get the parts you need when you can do the same thing safely through the internet.
Online car selling platform Vroom chimes in on the auto industry’s resurgence through online transactions, saying that being able to search through thousands of different versions and models while relaxing in the comfort of your home has never looked more advantageous than during the current pandemic.
Vroom’s CEO, Paul Hennessy, believes it will be difficult for traditional auto businesses that use a brick-and-mortar approach to suddenly become an eCommerce company. “There’s a big difference between having a website and being an eCommerce company, and between delivering a car in your neighborhood and having a nationwide logistics network,” Hennessy explains.
Supply and Demand Concerns Are Also Affecting Trade
Automobile and auto parts’ prices are slowly creeping up due to various concerns regarding supply and demand. For example, when the coronavirus hit parts of the country earlier this year, several auto companies had to shut down factories to lessen the risks of spreading the virus. As a result, the supply of new cars and car parts were severely limited.
Even the used cars are tougher to acquire with fewer repossessions taking place because of pandemic-caused loan-deferral agreements between borrowers and lenders.
On the other hand, the demand for cars is increasing because it allows people a safer way to move around while the outbreak is in effect, as opposed to other options like mass transportation and ride-sharing. The new social distancing guidelines have also added functions to cars; they can now serve as your personal space for eating, a way to watch drive-in movies or even camp out.
Meanwhile, more Americans are buying automobiles because they need a way to transport their things and themselves as they move out of the congested big cities and into the suburbs where there are open spaces better suited for living in the pandemic.
According to Vroom’s Hennessey, people who live in the city never needed a car before because there was always reliable public transport available, but the current risks have forced them to purchase cars, with most of these sales geared towards a move to the suburbs. “I would specifically say that as a result of that migration, that shifting of city demand is really more of a move to suburban demand,” Hennessey claims.
What This Means for the Future
The rise in online auto transactions does not seem like a temporary phase of success. In the past, customers were willing to spend hours in a local dealership because they had no other options. Physically visiting car shops to get a look at the models and haggle over prices was the standard procedure for buying cars.
However, the new normal has presented these customers with an even better option by going digital. Online car-selling platforms can offer an inventory of over 10,000 unique cars for clients to choose from, while physical stores can only show around a hundred vehicles at most. Digital companies are also taking care of delivery concerns once you purchase a car, so you have nothing else to but wait for your purchase to arrive at your doorstep.
The same applies to businesses that sell car parts. Digital companies can respond quicker and offer better-suited materials for your automobile needs by securing the necessary components from shops across the country. Local shops might not have this luxury since most of them only keep stock parts in the inventory.
A Final Word
If you are looking for car parts online, Wholesale Industrial Parts is an excellent source of quality materials. With a helpful and knowledgeable sales team to help you with your automobile concerns, you will surely have an enjoyable experience shopping online while ensuring you get the best parts you need at the most competitive prices available.
(Source: USA Today)