Tag Archives: tyresales

Take 2: Who has the No 1 Auto Classified Website in the World?

carsales is the number 1 auto classified website in the world.

Ok, there, that’s my answer to the common question of “where is carsales?” after my last post Who has the No 1 Auto Classified Website in the World.

How do I make this assertion now? (note: no I wasn’t told or advised to and I don’t feel obliged to!)

The best way I can answer this question is to quote the last paragraph of my last post:

At the end of the day, all of these websites are businesses and we all know that, as my esteemed former colleague used to remind me, “you can’t bank wank” – in other words, making money has to be the overriding measurement.

There you go, carsales is the number 1 auto classified website in the world because of the financials it delivers compared to the size of the opportunity, ie Australia’s comparative size in population & cars sold compared to the UK, US, China, etc.

A close second would have to be Autotrader.co.uk (although it is number 1 in terms of market cap) which has done an incredible job in the UK with others such as Autotrader.com (probably number 1 in terms of revenue), cars.com and Autohome.com (number 1 in terms of traffic) probably there abouts, all being great online businesses.

I could write another dozen posts with a different website in each post putting up a claim to be the number 1

Three areas where carsales is very strong compared to the before mentioned businesses are in private sellers, display advertising and adjacency businesses. These three business units help to make carsales the incredible business it is today.

The private seller business in carsales is an absolute standout compared to the majority of other online auto vertical businesses around the world. This is an area where large general classified business (horizontals) have really taken the space but carsales has managed to get and maintain a strong holding with the Australian consumer because “it works”.

The display advertising business of carsales has been a unique success story that has been able to deliver quality, premium audiences to automotive focused businesses, particularly OEM’s where a proliferation of data from consumers going right through their car finding journey has made it the most qualified advertising medium available.

The adjacency businesses are the newest of the three with the sale of tyres online through Tyresales.com.au, vehicle finance through Stratton Finance and car inspections through Redbook Inspect the standouts. Each of these businesses are partnerships carsales has entered into that leverage the carsales audience while still keeping an entrepreneurial style to ensure they grow as standalone businesses in their own right while delivering value to carsales through smart integrations.

Let’s not forget too that if carsales is doing well then it’s dealer clients must be doing well as it’s business model for the biggest part of its business is directly tied to what it delivers its dealers – leads which leads (pardon the pun) to sales.

The truth is, I could write another dozen posts with a different website in each post putting up a claim to be the number 1 auto classified website in the world.

I won’t do that but it does show one of the reasons to why this is a fascinating space to be involved in.

An Example of Easy E-commerce (the way it has to be)

carsales.com launched tyresales.com.au a few years back as a complimentary market for our consumers and dealers to benefit from.

It differs from our core businesses as it is pure e-commerce as opposed to the marketplaces we run that introduce buyers and sellers. We have learnt that e-commerce is somewhat different to an online marketplace but there is one thing that is the same – they both have to be easy.

carsales.com.au is easy because of its superior search technology, easy design, quality data, the largest, cleanest inventory in the market and most of all because “it works”. We are striving to make Tyresales.com.au “just work” too and here’s an example of it working.
Last month I had my car booked for a service at Ritter Land Rover on a Friday. From my previous service I knew that I was most likely going to need new tyres so I had a choice – get on the front foot to order them myself ensuring I get a good deal or I could just wait until Ritter called me to say I need new tyres which they would source, taking away my control and most likely costing me more.

So I decided to use Tyresales.com.au to find my tyres, buy them and have them delivered to Ritter in time for my service. This is an absolute plus in buying tyres on Tyresales for consumers and dealers.

One of the benefits of being a carsales dealer is that they have the opportunity of accepting tyre fittings from Tyresales which then provides the opportunity to up sell know a service. For a consumer, combining a service with tyre replacement just makes sense.

The process of finding the tyres I need was dead set easy, even for someone as car illiterate as I am. Not only did I find tyres easy, I found quality tyres that were 22% off retail price which for 4 tyres added up to a $600 saving. The real beauty of it though is that before I paid for the tyres online, I had the option of selecting the dealership I wanted the tyres delivered to.
So in virtually 1 swoop I found the tyres I wanted, paid for them (with real savings) and had them ordered for delivery to Ritter in time for my service on the Friday.

Come Friday I took my car to Ritter for a service and when I picked it up, 4 new tyres were making their mark on my Land Rover.

The process couldn’t have been easier or more convenient, exactly the way e-commerce should be (and thank you Ritter for the same in service!).

2 Critical Factors in an Ecommerce Site

carsales.com has made its mark with online marketplaces. How hard can it be to take that into ecommerce?

Like anything, it’s not hard when you know what you don’t know. Simple right? Let’s look at it.

carsales.com.au is an online marketplace connecting buyers and sellers of cars. Tyresales.com.au is an ecommerce site where buyers purchase tyres through the online store and have them delivered to a Tyresales accredited dealer for fitting.
Put simply, an online marketplace connect buyers and sellers but doesn’t play a part of the actual transaction whereas an ecommerce site is all about facilitating the transaction and providing the goods purchased online.

We have found from a website perspective that changing wording, colors and layout on both sites can move the needle as far as generating leads or sales, vital metrics. Above all, they both have to be easy to find what you want and easy to action.

There are however, two factors in an ecommerce site that are material to success:

Price on an ecommerce site is absolutely vital. Online buyers will shop around to find the best deal so it is ultra competitive. Remember, the price is the price on an ecommerce site, there is no haggling as you are paying without talking to anyone whereas the price on an online marketplace is generally “negotiable”; the marketplace connects buyers and sellers to then make the deal.

A competitive price on carsales.com.au is important to attract buyers but it is not the be all and end all. On Tyresales if the price isn’t the most competitive we will lose the sale to one of the many competitors out there.
Once a buyer has purchased something through an ecommerce site, it is imperative that the goods are supplied in the timeframe given. Not doing so ruins all goodwill which effects word of mouth recommendations, could create negative online reviews and most definitely cancels out a repeat purchase.

We have found on Tyresales that these two factors are critical in creating a trusted site that is top of mind when drivers need new tyres.

These are only two differences between the online marketplace and an ecommerce site (there are plenty more) and wow, they take some experience to get it right.