GM announced yesterday that they would be stopping sales of GM cars on EBay today
, just six weeks after the start of the program. Initially, the announcement was hailed as "out of the box" thinking by GM and their willingness to leverage EBay technology to sell cars in California.
When I first heard of the program, I was puzzled. From my vantage point, Internet new car shoppers have far too many questions and customer service needs before they make a purchase to fit in the EBay model for the masses. I also wondered about how F&I sales and related upsells would be affected.
If you say that 8-15% of Internet sales leads can convert depending on their source, that percentage shows that Internet shoppers are not instant buyers. Internet Sales Managers can comment on how many emails and calls it takes to close a deal. This is part of the reason why the EBay auction model for new cars is not the panacea GM thought.
I would like to call on the ADM community to share their thoughts on why the GM and EBay tie-up did not succeed. Secondly, GM announced that they will be focusing on their National Marketing plan which includes their new 60 day money back guarantee; "May the Best Car Win
I encourage GM storefronts to comment on the "May The Best Car Win" marketing campaign. Is this plan gaining traction with local consumers and driving in any significant traffic?