South African Automotive Week
Eyes on the Site
The South African Automotive Week launched with a breakfast for media and guests organised by Gumtree,
South Africa’s most powerful classified online site, which used the opportunity to introduce their latest online tool,
the Gumtree Auto Inventory Tool.
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This will, Osborne says, grant
you the ability to control
stock levels for ordering or
redistribution better, as well
as improve efficiencies across
the board.
eff Osborne, head of
Gumtree Auto, kicked
off the breakfast with
the comment that in the past
the mantra for success for an
automotive dealer was “feet in
the dealership”, whereas today it
is “eyes on the site”.
He continued in this vein by
saying that 40% of Gumtree’s
traffic is automotive, and that
80% of the postings came from
the automotive industry, rather
than private postings.
They are using this avenue because in
the modern hectic world, time is at a
premium.
“Research has always been part of a
high-value purchase process, such as a
car, and the online world makes it much
easier for customers to conduct price
and stock comparisons.
That is also why research tells us that
consumers will visit an independent
sales platform and circumvent a
manufacturer or dealer site – they
want to compare different brands and
alternatives, but also second hand
and new vehicles, find out about
accessories, and of course hunt for
bargains”, he adds.
Today an average dealership is
spending from R40 000 to R50 000 per
month on classified ads, but with mixed
results.
The problem with many of the sales
platforms are that dealerships end
up with very little control over their
spending and even their ads.
“The vast majority of these sites are
monetised, and can be quite pricey,
but they offer virtually no autonomy to
dealerships,” says Osborne.
“Contracts are usually annual and
fixed, which leaves no room for the
natural ebbs and flows in the sales
year and can lead to overspending or
under-utilisation.
They are also usually unable to do
what most other retailers can do with
ease – pull analytics from the site
to find out which vehicles perform
better in which area, which keywords
elicit the best responses, and which
inventory levels need to be adjusted
and where.”
Osborne says that choosing a tool that
provides greater control and creativity
goes a long way towards improving a
dealership’s sales – and other fringe
benefits.
“Ideally, opt for products that
can actually demonstrate
a return on investment and
allow for adjustments – that
way you can control your
spend, your marketing efforts
and your inventory in such
a way that you aren’t only
selling online, but also using it
to manage offline efforts optimally.”
Gumtree has the largest inventory of
vehicles for sale online and Osborne says
that the Gumtree Automotive Inventory
Tool (GAIT) has been well received by
most dealerships, even though it is an
entirely new way of operating from the
platform.
All in all, I think dealerships
realise that a better online
management system reaps huge
rewards and ultimately ups their
game,” he says. “We expect this
“Ideally, the control should lie with the
dealership because it improves the
experience for everyone involved.
Using an online sales platform should
you enable you to add visual overlays,
such as your logo, or promotional
phrases (e.g. 20% off until Saturday!)
to images, but also should grant you
the ability to pull real-time analytics
from the site – a snapshot of your
inventory, leads, and responses.”
| words in action
53
november 2014
to have a significant, positive
impact on the industry as a
whole.
More on this exciting new
online product in future
issues of aBr.