The impact of vehicle shortages post-Covid and the benefits of online inventories
Many buyers have struggled to find a vehicle during the inventory shortages post-Covid, putting strain on automotive dealerships, which have dealt with low sales, upset customers, and frustrating delays. Below, we’ll discuss whether dealership inventories are on the rise in 2023, what the long-lasting impact of vehicle shortages has done to the industry, and the benefits of online inventories for dealerships and customers.
What is the current status of the chip shortage for vehicles?
Three years out, we’re still seeing vehicle delays due to parts and labor shortages. However, we’ve seen some improvement, and the industry is well on its way to pre-pandemic output. Dealerships have adapted to the new limitations on inventory by focusing more on online presence, communication, and marketing, helping to mitigate the negative impact of the pandemic.
The chip shortage impact on dealerships and sales
We’ve seen business closures, reduced sales, and lower customer satisfaction due to inventory shortages and vehicle delays. Businesses of all sizes were impacted, but smaller businesses with less to fall back on were hit the hardest, leaving us with a new automotive landscape with many shoes to fill in terms of small, local dealerships. New opportunities have also arisen from the situation, with business tactics putting a stronger emphasis on online services, delivery, and customer-centricity.
The pandemic impact on business tactics
Automotive dealerships invested heavily in an online presence during the pandemic, using marketing methods such as SEO content and social media to keep customers updated on and excited about new products while lockdowns took place. This new focus led to more innovation, and many dealerships are now using their websites to promote vehicle pickup and delivery services, at-home test drives, valet maintenance, and many other convenient, customer-centric strategies. Crucial to a dealership’s success in sales is the availability of at-home, easy-to-use services, including an updated inventory.
How online inventories have altered the dealership landscape
Online inventories were able to keep some dealerships afloat during the pandemic, allowing customers to view real-time availability of vehicles at a time when vehicle inventories were limited. Online shopping increased during this time, and many customers were able to avoid a trip to a dealership to check for vehicle availability, increasing customer satisfaction and trust.
What are the benefits of online inventories for automotive dealerships?
Online inventories provide customers with information on availability, vehicle specifications, and pricing, reducing the time needed at the dealership and streamlining vehicle sales. With links to Vehicle History Reports, test-drive schedulers, and contact forms, these inventories help customers take the first step toward their next purchase.
Here are five main benefits of DealerFire online inventories:
- Increased conversion rates
- Three-second average page loading times
- Increased session duration
- Responsive design for all device types
- Customization options