Before 2020, car buying was almost entirely an in-person process. Shoppers visited multiple dealerships, negotiated face-to-face, and completed all paperwork on-site, while dealership websites mainly served as static brochures. Remote purchasing was rare and often met with skepticism, as dealers relied heavily on foot traffic.
The COVID-19 pandemic changed everything, forcing dealerships to adopt digital tools to keep sales moving during lockdowns. This accelerated the rise of digital retailing from a niche concept to an industry standard. Today, customers expect to start—and sometimes complete—their purchases online, valuing convenience, transparency, and flexibility. The impact is clear: over 95% of used-car searches now begin online, according to The Wall Street Journal, and buyers who complete steps digitally before visiting a dealership are more likely to purchase—55% go on to buy—and they save an average of 42 minutes, leading to higher satisfaction scores, according to Cox Automotive.
In this article, we’ll explore what digital retailing means for dealerships and share practical tips to help you make the most of it.
What is Digital Retailing?
Digital retailing seamlessly blends online tools with in-store operations, creating a smooth, connected car-buying experience. A strong digital retailing strategy transforms online interest into real deals—shortening the sales cycle and boosting close rates.
Imagine a customer shopping for an SUV: they can virtually explore your showroom, take 360° tours, and compare trims and features on your website or social media pages. Along the way, they check reviews, read feedback from other buyers, and see comments about your dealership. With just a few clicks, they get an instant trade-in value, apply for financing, and book a test drive—all online.
By the time they walk into your dealership, most of the process is already complete—making the final steps faster, smoother, and more satisfying for both the customer and your sales team.
Dealers Who Share More, Sell More
A winning digital retailing strategy begins by giving customers complete, accurate, and transparent information like informative vehicle features, immersive visuals, transparent pricing, trade‑in values and financing options—consistently across a dealer’s website, social media, emails, and chat. Yet some dealerships are still transitioning toward full transparency, often slowed by legacy sales practices, disconnected systems, or concerns about losing negotiating leverage.
But holding back can be costly. For example, according to Gitnux‘s recent industry data, 74% of automotive consumers say they expect transparency around vehicle pricing online, and a lack of it damages trust—pushing shoppers to more upfront competitors. By ensuring every channel tells the same, up‑to‑date story, dealerships build trust, keep customers engaged, and move them further down the sales funnel.
The Hidden Gap in Digital Retailing
A great digital strategy alone isn’t enough if your team isn’t ready to fully support it or take advantage of the insights it provides. For many buyers, the purchase journey is a hybrid process—starting online, where they research, compare, and make decisions, and ending at the dealership to finalize the transaction. Digital retailing only delivers results when your online tools and human operations work in harmony.
Imagine a customer spending hours on your website—researching, calculating payments, selecting F&I products, even submitting their trade-in details and photos—only to be told by a salesperson, “Come on in and we’ll get started.” The customer feels their time was wasted, and the salesperson unknowingly jeopardizes the sale. At the same time, every action that the customer took online created valuable data—showing interest in specific models, price ranges, trade-in values, and add-ons. If your dealership isn’t capturing and using that information to personalize follow-ups, adjust inventory, or fine-tune pricing, you’re leaving one of digital retailing’s biggest advantages untapped.
Optimize Your Digital Retailing Strategy
Digital retailing is now the backbone of car buying—but tools alone won’t guarantee success. The real win comes from connecting those tools to transparent communication, efficient processes, and a team that seamlessly integrates the customer’s online journey into the showroom. Done right, digital retailing builds trust, shortens the sales cycle, and keeps your dealership ahead in a market where convenience and consistency close the deal.
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