Buying Cars on E-commerce? 11st Sold 2,600 Vehicles Last Year

Growth Potential Increases with Rise in Contactless Transactions
Imported Car Events and Lease Product Sales Also Expand

[Asia Economy Reporter Lim Chun-han] The e-commerce industry is expanding its sales domain into the automobile market. Although the overall market size is still minimal, the growth potential is considered high as non-face-to-face transactions have become more active since COVID-19.

According to 11st on the 28th, the number of cars delivered through its platform last year reached 2,600 units, a 44.4% increase compared to the previous year (1,800 units). 11st aims to sell 10,000 units by 2025. 11st sells cars by connecting customers who request purchase consultations online to offline dealerships, where the final contract and vehicle delivery take place. They have been conducting consultations for new car sales and long-term rental purchases for brands such as Volkswagen, Mercedes-Benz Mobility Services, Ssangyong Motor, Peugeot, Citro?n, and BMW Kolon Motors, and have also introduced test drive promotions and live broadcasts.

In late December last year, from the 27th to the 28th, 11st held the e-commerce industry's first test drive and contract promotion for Mercedes-EQ's first electric sedan, the 'The New EQS.' Over the two days, there were about 1,300 test drive and contract consultation requests. More than 500 consultation requests were made through live broadcasts alone, with a cumulative viewership of 820,000. In November last year, they also held an online motor show event during the '11th Festival.' This year, 11st plans to strengthen sales of eco-friendly electric vehicles. They also intend to utilize live broadcasts more actively for car sales and introduce new online sales methods such as the metaverse (extended virtual world).

Gmarket offers a variety of lease products. Currently, searching for car leases on Gmarket reveals over 2,600 products. Last year, sales of car lease products on Gmarket increased by 92% compared to 2019. TMON has conducted special live broadcasts for premium used car sales, including Genesis and Mercedes-Benz. An industry insider explained, "The reason the e-commerce industry is entering the automobile market is that cars are high-priced items with large profit margins, and car sales still largely rely on offline distribution structures. If car sales occur online, additional sales of related consumables can also be expected."