Gumtree Cars is creating their own business model the company believes will operate better than competitors like Carsales.
Because Gumtree Cars has come relatively late to the Australian market, and therefore effectively inherits the benefit of hindsight, the company has been able to study from the sidelines to see where others have attempted to build better mousetraps to lure the majority of classified advertising support from Australian dealers.
While closely watching the car vertical business model, Gumtree has been building a huge national following of buyers and sellers across just about every item the community has for sale, and it is off the back of traffic created by this ubiquitous marketplace, including cars, that the company has declared that it is ready to win more dealers over to its platform and take auto classifieds leadership.
Foremost in the appeal of Gumtree Cars for dealers is that it is a very uncomplicated classifieds advertising model in which dealers basically pay for the number of cars they list.
It takes online classified advertising for dealers back to its core purpose where buyers get open access to full details about cars for sale and contact details of the selling dealer rather than pay for ongoing blind leads which are the core of the market leader’s revenue model and the subject of much of the angst that dealers express.
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