Kogan, an Australian-based online retail platform, recently announced they will be entering into car sales as they team up with the Eclipx Group, a fleet leasing company. This partnership will allow Kogan to sell vehicles from auto dealer networks while continuing to be an independent company.
This is a big move for Kogan which focused on selling consumer items. The launch of Kogan Cars also gets ahead of talk that retail giant Amazon will also be launching their own online car sales platform.
Kogan Cars and Eclipx will work together to provide consumers with advice, set up a test drive with a nearby dealership, negotiate prices with dealer groups to provide cheaper options, and set up home delivery.
In a statement, Kogan said: “Kogan Cars will secure new cars at competitive prices from dealers across Australia while also enabling customers to trade in cars from a wide range of makes and models.
“Kogan will receive fees from Eclipx Group under the arrangement."
Kogan currently has around 1.6 million customers in the country and just started up their Kogan Marketplace to allow other retailer and manufacturers to put their good on Kogan's retail platform.
Marketplace began earlier this year and boasts over 100,000 good from companies like Lego, Breville, Microsoft, Gillette, Philips, and Fisher-Price.
Car sales will also use the Marketplace platform that will be customized by Ecliipx from specific dealerships. Exclipx has parnetships with dealer groups all around the country thanks to their fleet management, leasing, and auto rental businesses.
Eclipx Group's Managing Director David Brudenell told GoAutoNews Premium that his company was involved with a large number of national dealer groups.
“We have an expansive list of dealerships around the country. This is important because the customer is likely to be very specific about what they want to buy – vehicle make, model and even colours – so we have to provide a service to ensure the customer gets exactly what they want, as quickly as possible,” he said.
Brudenell also stated that this new partnership won't take away anything from their dealership relationships.
“The dealer is still involved in the process, from test drives to getting stock and servicing,” he said.
“We bring the customer, who is ready to buy, to the dealer and that frees up the dealer for other opportunities.”
Kkogan Cars may be new but Brudenell already sees a bright future stating that Eclipx is “encouraged by the number of customers who are engaging with us online”.
“Amazon’s entry into Australia shows that it sees a future of customers doing business online,” he said.
“In the automotive line, there’s a lot of companies in the US and the UK who have been successful at online sales and the same system is expected to do very well in Australia."
“The US companies who have done very well at online sales include Truecar, Carvana and Shift."
“As demand for online retailing increasingly shifts into Australia, we are already there with products to sell.”
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