Carvana's Chief Brand Officer, Ryan Keeton, reveals how the pandemic accelerated the shift to online used car sales and Carvana's strategic response. He details their contactless model, innovative brand building with 'car vending machines,' and efforts to diversify inventory by sourcing directly from consumers, all while aiming to become the national standard for buying and selling cars.
It’s been a big year for online shopping -- online car shopping too. Last summer, for example, Edmunds.com reported that used car and truck sales were the highest they’ve been since 2007. And online used car retailer Carvana was able to ride that wave (or, perhaps, drive that used ’09 Camry). It reported year-over-year revenue growth of 41% at its third quarter earnings. According to chief brand officer Ryan Keeton, the nine-year-old company was able to use the momentum it built over the last decade to capitalize on retail shifts during the pandemic. Keeton joined the Modern Retail Podcast this week and discussed his company’s overall strategy. Carvana relies on a predominately contactless experience, which has worked during a pandemic. But beyond that, this past year’s strategy was about making sure the company was a household name. It was known to many as the online company that also had a car vending machine -- which some thought of as a marketing gimmick. But as Keeton described it, the vending machines are “a very low cast way for us to get our name out there.” In 2020 Carvana also focused more on inventory diversification. The company had for years relied on wholesale channels from which most other used car lots sourced as well. But over the last few years, Carvana began trying to buy cars directly from consumers. 2020 was the first year that the retailer really let that program hit its stride. When you buy inventory directly from customers, said Keeton, “you can really diversify that and find different vehicles that customers are looking for.” Which is to say that over the last 12 months, Carvana really tried to make itself stand apart from other used car sources. Part of that is continuing to double down on new inventory sources, as well as heavily marketing people all the time. “Our goal is to build a national brand,” said Keeton, “to change the way people buy and sell cars.”