Media reported that online shopping has skyrocketed in popularity over the past decade and is now the default choice for millions of consumers, so it’s no surprise to see some automakers start doing more. In fact, Volkswagen recently announced that sales of its ID line of electric vehicles will be more focused on online sales.
In the future, most ID car buyers will not go into car dealers but order these EVs directly in VW’s online marketplace.
Dealers will be more likely to take on the “agent” role, while at the same time they will still receive the same compensation and commission as in the traditional distribution model. But their actual work will be less focused on the sales itself, but more on consumer consulting, test drives and vehicle handover services.
This new sales model has many benefits for both dealers and customers. When customers already know what they want, they don’t have to endure frustrating sales rhetoric, and dealers can get a steady, calculable commission.
In addition, Volkswagen said it would bear the burden of vehicle financing in addition to inventory costs and costs associated with showroom vehicles. All in all, VW seems more interested in reducing the financial burden on dealers and encouraging them to take on more customer-oriented roles in the sales process.
While the changes may sound controversial to some, VW says 100 per cent of its retail partners will be involved. VW calls the new sales process a “proxy model” designed to unify the showroom and online experience. In the long run, it remains to be seen how the agent model will work for dealers, customers, and the public themselves, but so far this sounds like a win-win for all.
It is reported that id new models are expected to enter the major European markets next month, when Volkswagen will bring all-electric hatchback ID.3.