GM’s trial program selling cars on eBay set to end

General Motors Co. said last week that it was ending its partnership with eBay Inc on which the automaker sold new cars through California dealerships. This move comes in the automarkers plans to shift focus on broader, national marketing programmes.The contract, which ended on September 30 was cancelled not due to lack of participation, according to the automaker and the auction website. Spokesperson for GM John McDonald said the programme on eBay had been a success as it helped the company improve strategies to reach car buyers who typically did not consider GM products. He said they would take their learnings from eBay and apply to their new digital and social media marketing strategies.

On eBay’s auto marketplace, California car shoppers were able to negotiate prices with a dealer or purchase vehicles at fixed prices and the pick it up from the dealership. Though General Motors and eBay did not disclose how many GM products were sold on eBay, its auto marketplace received around 1.5 million hits, generating around 15,000 leads for dealers. The programme had around 227 California-based dealerships participating.

GM’s spokesperson indicated that the company would focus on its new, national marketing campaign as well as its money-back guarantee programme, which enables dissatisfied customers to return vehicles within 60 days. One car dealer who runs four GM dealerships and sells used cars on eBay said he did not sell many new cars through the GM’s eBay programme. According to him, very few people chose the ‘Buy Now’ option, and opted to come down to the dealership to make the purchase.

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