AI For Used Car Marketplaces: 5 Ways Used Car Marketplaces Can Leverage AI3 min readReading Time: 3 minutes
AI for used car marketplaces
The sale and resale of automobiles have mostly been physical experiences. Although there have been a number of online platforms for automobile resale that have come up over the years, the pandemic led to exponential growth in this sector. Customers are no longer bound by physical boundaries and can demand competitive prices. Sellers, on the other hand, are benefitting from enhanced transparency as a result of competition. Car dealerships are also finding themselves adapting to the new rules of the used car market. As online car resellers become the norm, there is immense potential for AI to solidify this growth and help the sector achieve maximum potential.
Here are 5 ways used car marketplaces can take advantage of AI
1. Seller lead scoring:
With AI, used car marketplaces can qualify seller leads to target their personalized sales efforts and consequently, improve conversions. Lead scoring models will help used car marketplaces focus their efforts on sellers who will likely convert. This, in turn, will bring the marketplace revenue, versus wasting efforts on sellers who might not convert.
2. Image moderation & automation:
Used car marketplaces can take advantage of AI-Powered Image moderation to qualify & automate onboarding workflows with images. AI-Powered Image Moderation can enable Used Car Marketplaces to speed up their onboarding process for vehicle listing in a manner that is both efficient and accurate.
3. Personalized recommendations:
Buying a car is usually not an impulsive process. It involves consideration. With AI, used car marketplaces can help consumers make better decisions. How? By showing them recommendations that are tailored to their needs and specifications. So, this guides the consumer out in the right direction, while helping the platform build credibility and trust among consumers. This, in turn, leads to greater word-of-mouth marketing, which is critical for marketplaces that deal with high-ticket items.
4. Similar car recommendations:
With used cars, platforms deal with the inventory of 1. All cars for sale on the platform are distinct to some degree. When a car that multiple buyers are looking at gets sold, AI-Powered similar car recommendations can ensure that consumers don’t bounce due to lack of availability. What’s more, these recommendations guide users to similar options that are tailored to their specific preferences such as variant, color, year of manufacture, etc.
5. Know your user:
With AI, used car marketplaces can build robust user profiles – of both sellers and buyers. This can be done with various behavioral as well as transactional signals across touchpoints. Used car marketplaces can provide streamlined recommendations with strong user profiles. These recommendations are personalized to the user as well. On the seller side, the platform can provide customized offers to encourage them to be loyal to the platform.
The need for AI for used car marketplaces
As online used car marketplaces become the norm, the competition is heating up. By infusing their operations with AI, used car marketplaces stand to gain a significant edge over their competitors by way of more efficient processes and superior customer experience management.