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Here's why automotive workers could lose their jobs

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Online sales on the rise

Online car sales are set to cost 27,000 automotive sales jobs by 2027, as new research from online review community Trustpilot and the Centre for Economics and Business (Cebr) reveals motorists looking for a new car will become increasingly likely to buy online, rather than from a dealership.

Traditional salespeople could take a back seat as tech-savvy consumers become more comfortable making purchases of new and used cars online. The new research uses consumer survey data to predict that one in five new cars will be sold on the internet by 2027. Car dealers could see more than £41 billion revenue and 27,000 jobs disappear if they fail to adapt to the new sales environment.

Trustpilot’s UK Managing Director, James Westlake said “Competition will be stiffer than ever, as dealers will be forced to compete across both traditional and digital sales channels. The key to winning this race is not just on price, but by generating consumer trust and confidence to buy a car through their platform.”

Dealerships are being encouraged to adapt their current business model to meet changing consumer behaviours. Some manufacturers are already responding to consumers’ desire to purchase online. For example, Peugeot have created a new platform which allows customers to buy a car in just one website visit. Tesla’s new sales model cuts out the dealers altogether and sells direct to customers in their branded stores.

“With more than half of all shoppers checking online reviews before making a purchase, one effective way to boost sales is by embracing feedback. By inviting consumers to review your business you will not only help to humanise it but also boost search rankings and most importantly, generate trust,” Mr Westlake commented.

The shift to online car sales is predicted to begin slowly and accelerate as more consumers become comfortable buying online, and as the industry adapts to the new sales reality. However, the research suggests that nearly £1.5bn worth of sales will have moved online by 2020.

Christian Jaccarini, an economist at the Centre for Economics and Business Research (Cebr) said, “As automotive retailers establish online platforms and consumer behaviour adjusts, we expect to see car sales shift online, as seen in other industries. Transaction numbers may be small at present, but recent evidence suggests that businesses which fail to accommodate changes in consumer behaviour will leave themselves exposed in years to come.”

Tim Smith, group strategy director for GForces, believes online sales are an opportunity, not a threat, to the UK’s vehicle retailers.

“More of the car-buying journey takes place online than ever before,” Mr Smith explains. “And that online environment allows us to have more sustainable, productive, and engaged relationships with our clients. Ultimately, that means greater insight, allowing us to respond better to customer needs, and see improved conversion as a result.”




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