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04 May 2020

Home delivery boosts van sales

Dealerships risk losing out to online van sales

As the Covid19 lockdown continues, a boom in home delivery services is fuelling an increase in demand for LCVs and particularly vans.

If like most you’re staying at home during the lockdown, you may have used home delivery for the first time or increased the diversity of products you’ve ordered.

It’s certainly a convenient and practical way to receive goods to your doorstep.

You may have had a recommendation from friends or family or been contacted directly by the business. But by necessity, local companies have had to gear up for a rapid increase in eCommerce and home deliveries as they look for ways to maintain sales and contact with customers.

With dealer opening restrictions currently in place, online vehicle sales are an obvious solution for businesses that need transport right now. As a result, bricks and mortar dealers who have been unable to put in place contingency plans to sell vans remotely are at a disadvantage.

In addition to changing the way businesses operate, the Covid19 situation is also likely to influence customer preferences going forward. Consumers who are increasingly sourcing local products would seem to be accompanied by a tendency to move away from supermarkets. All of which is good news for smaller independent retail businesses.

Fruit and vegetables, speciality food, groceries, pet food and everyday household essentials are increasing available from local companies with the convenience of home delivery.

And with online ordering and payment now commonplace in the restaurant sector, it’s easier than ever for businesses to provide contactless home delivery.

But even outside of the particularity of the Covid19 situation van sales have been outperforming car sales in growth through 2019 according to SMMT figures.

Changing customer demand boosting the increase in van sales is opening up opportunities for dealers to expand their vehicle range on the forecourt and online.

Enhanced innovation, technology, design, function and performance are making vans more flexible, practical and comfortable than ever.

And now, van manufacturers are also addressing environmental concerns which could weigh against the home delivery model. With ever more stringent emissions regulations, Hybrid and Electric vans are being adopted by major international companies such as IKEA, who have committed to using electric delivery vehicles.

As more local businesses develop their home delivery services, is your dealership ready to take advantage of a higher demand for vans?

Digital marketing – particularly optimised website content and email marketing is a powerful way to diversify and break into new vehicle sectors. And with the accelerated rise of automotive eCommerce and online sales, now‘s a great time to be reviewing your online marketing strategy.

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