The automotive industry is at a pivotal crossroads. The rapid acceleration of direct-to-consumer (DTC) ecommerce, fueled by shifting consumer expectations, digital-first disruptors, and the pandemic’s impact, is fundamentally transforming how vehicles are bought, sold, and serviced. As OEMs (original equipment manufacturers) and dealers navigate this new landscape, the opportunity—and necessity—to collaborate and deliver seamless, customer-centric experiences across digital and physical channels has never been greater.
For years, the auto industry has discussed digital sales, but the rise of Tesla’s direct sales model and Carvana’s customer service-focused approach—combined with the behavioral shifts triggered by COVID-19—have made DTC ecommerce a strategic imperative. In 2019, U.S. vehicle sales totaled $1.1 trillion, yet only about 1% ($14.6 billion) occurred online. The pandemic was a catalyst: during the first wave of COVID-19, major dealer groups like AutoNation saw a dramatic spike in online-only sales, a trend that has persisted even as restrictions eased. Consumers, now conditioned by the convenience and transparency of ecommerce in other sectors, expect the same from automotive retail.
Today’s car shoppers are digital natives. They want to research, compare, and even configure vehicles online—often completing most of the purchase journey before ever setting foot in a dealership. According to recent studies, 60% of shoppers want to complete more of the car buying process online than they did previously. They expect:
Yet, operational challenges remain. Many customers report frustration when asked to re-enter information at the dealership that they already provided online, leading to unnecessary delays and a fragmented experience. Every time a customer is left waiting or forced to repeat steps, satisfaction drops—sometimes by as much as 30%.
Despite the rise of DTC, the dealership is far from obsolete. In fact, 90% of U.S. consumers still say they are likely to buy from a dealership, and the in-person experience remains critical for test drives, final negotiations, and delivery. However, the dealer’s role is shifting:
The future of automotive ecommerce is not a zero-sum game between OEMs and dealers. Instead, it’s about partnership and shared data. OEMs must work with dealers to:
Case in Point: General Motors’ “Shop Click Drive” platform allows customers to order and pay for vehicles online, then choose between dealership pickup or home delivery. Over 85% of GM dealers now use this system, which has significantly reduced time spent at the dealership and improved customer satisfaction. Similarly, digital-first disruptors like Carvana have set new standards for transparency and convenience, prompting traditional players to raise their game.
Transitioning to a true omnichannel model is not without hurdles. Key challenges include:
The solution lies in shared digital platforms, open data strategies, and a unified view of the customer. By investing in integrated systems and collaborative processes, OEMs and dealers can deliver a seamless experience that meets modern expectations.
The DTC revolution extends well beyond the initial vehicle purchase. Consumers are increasingly interested in:
Nearly half of consumers express interest in programs that provide ongoing value, such as discounts on parts or bundled service packages. This opens new revenue streams for both OEMs and dealers, especially as vehicles become more software-driven and require regular updates and upgrades.
The future of automotive ecommerce is bright for those who embrace change. By collaborating across the value chain, investing in digital capabilities, and putting the customer at the center, OEMs and dealers can create a next-generation car buying journey that is fast, transparent, and truly customer-centric. The winners will be those who see DTC not as a threat, but as an opportunity to build deeper, more profitable relationships with their customers—online and off.