ONLINE AUCTION AS A MARKETING TOOL OF USED CAR SALES STIMULATION

Abstract

The article explores the essence of online auction as an environment for the promotion of goods through e-commerce technology, which is rapidly developing and changing. The aim of the article is to study theoretical issues related to the identification of the peculiarities of online auctions functioning to stimulate sales of used cars. The processes occurring in the e-commerce environment are the object of research. The basic principles of the formation of a business model of an online auction are determined, the main types of auctions are considered, namely: standard, Dutch, simultaneous bid auction, auction of closed bid and double auction. The advantages and disadvantages of online auctions during the bidding process are disclosed. The groups of auctions in Ukraine are determined. The process of selling used cars at the auction is investigated and its main stages are described. Based on the experience of the specialized international company "ALD Automotive Ukraine", the activities of an online auction for the sale of used cars are analyzed in the article. The strengths and the weaknesses of using online auctions to drive sales of used cars have been identified. The strengths are the following: the access to complete information, the availability of the most powerful tools for selecting a vehicle according to technical specifications, cost reduction related to the advertising campaign, full automation of the process of servicing potential customers, the support of customer feedback, quick informing of the partners and customers about new services, the lack of corruption schemes, after-sales support and resolving contentious issues, etc. The weaknesses are the following: frequent lack of opportunity for the buyer to inspect the car personally, possible long-term delivery of goods, etc.