Dan The Tire Man launches Marketplace to compete with eBay
Can a new market for automotive tires, wheels and accessories really challenge eBay?
DanTheTireMan.com has announced that it has expanded its online tire and wheel store into a marketplace trying to do just that.
“People wondering what to do with that old set of tires and wheels gathering dust in the garage can now turn it into cash online without paying an upfront signup fee,” the company said in its release. hurry.
Dan The Tire Man’s business model includes offering financing options for people with credit issues through two partnerships the company has with Snap Finance and Progressive Leasing.
These finance programs allow the company to offer flexible payment programs to customers from $0 to $49 out of pocket with no credit check at the time of purchase.
“A lot of people live paycheck to paycheck and they just don’t have the money to buy new tires when they need them. This program is great for people who have a bad credit or who are short on money and need the tires now rather than waiting until they can afford them.And since there is no rigorous credit check, their credit score will not will not be affected.”
Katie Marsh, co-owner of Dan The Tire Man
Dan The Tire Man targets eBay sellers
Dan The Tire Man does not hesitate to know who he wants to register on his market. They are looking for disgruntled eBay sellers and looking for an alternative platform to sell their products.
“eBay charges sellers listing fees whether the items sell or not. You can imagine how expensive it is for sellers who do bulk downloads. Dan The Tire Man only charges the customer a nominal commission only when the item sells,” said Dan Marsh, co-owner of Dan The Tire Man.
“This marketplace allows large sellers and individuals to list items, new or used, and match their offerings to rent-to-own programs with no credit required. No other market offers this.
“We have tens of thousands of visitors to our website every month who are specifically looking to buy automotive tires, wheels and accessories, but most don’t have the money to do so, so they use our funding,” Marsh added.
Dan The Tire Man’s main customer seems to be one with credit issues and therefore cannot easily participate in the Digital Economy.
This type of buyer (subprime buyer) pays a much higher final price than many people after adding the financial costs. In many cases, these buyers repay the loan through automatic payments deducted from their checking account on scheduled paydays.
These are not traditional loans, they are technically known as lease-to-own or lease-to-own financing programs. Some people may be familiar with this concept through national furniture retailer Aaron’s, which offers branded items through leasing and rental programs.
But this business concept is not new to tires and wheels. National retailer Wheel rental (RAW) pioneered this idea in 1996 and now has over 136 locations in 15 states.
Dan The Tire Man takes the tire and wheel rental business concept one step further by bringing it online via a marketplace. Targeting what appears to be an underserved community of online shoppers is a niche and smart idea.
However, what is missing from Dan The Tire Man’s press announcement is funding information that could help bring it to market and expand the market faster.
It appears the company has simply expanded its e-commerce website to allow third-party sellers to list products and will continue to rely on its “tens of thousands of visitors” to grow the market.
Nothing wrong with prime. But building something today that can eventually compete with bigger marketplaces like eBay without funding is a daunting task.
If Tire Rack were to announce that it would embark on creating an online marketplace for wheels, tires and parts, it might worry the folks in San Jose (eBay headquarters).
But the market for Dan The Tire Man is unlikely to cause eBay executives to lose sleep today and have bigger competitors to worry about just yet.
eBay said parts and accessories (P&A) would be a priority category for them this year. In fact, it looks more like a refocus, as the market at one point was effectively THE dominant online player in this category.
The company always ranks among the top online destinations for P&A. However, Amazon and other e-commerce companies have eaten away at eBay’s P&A business over the past decade. This is where eBay places its focus to avoid losing more P&A than them.
So where does Dan The Tire Man fit into all of this? It really is a very small company trying to carve out a place for buyers who need help financing their purchases through non-traditional means.
While Buy Now, Pay Later companies like Afterpay and Klarna also serve this group of buyers somewhat, it’s usually on much shorter terms.
Dan The Tire Man’s seller terms and conditions page is very simplistic and empty of many areas normally covered by marketplaces, such as fees and how they will handle buyer/seller disputes.
Regarding fees, there is vague language saying “from administrative fees to the final list price for the buyer”. What is the price ?
While they can technically be “added” to the final price displayed to a buyer, it would be beneficial for sellers to know what these charges are so they can price their products accordingly.
On Facebook announcing the market early, the company reminds sellers to include the shipping price. This is also not mentioned in the terms of the site or in the press announcement.
Dan The Tire Man mentions that payments will take place within 24 hours via PayPal or ACH bank transfer, Monday through Friday. So, fast payment is a big plus here and something that can attract eBay sellers who still feel frustrated with eBay Managed Payments.
However, there are a few user experience (UX) features typical of an online marketplace that seem to be missing.
For example, there is no way to find items by seller usernames, no indication of who is selling an item, the business itself or a marketplace seller, no contact a buyer button for questions, no shipping or delivery estimates on listings, and no “Year, Make, Model” (YYM) filtering to help buyers find the right parts for their vehicle.
Maybe some of the missing UX elements are hidden by the software that powers the marketplace section because there aren’t any vendor listings yet?
My first thoughts
I like the category, the niche of targeting buyers with credit issues that aren’t typically served by other online marketplaces, and the promise of fast payouts.
Dan The Tire Man seems to be initiating this launch. It’s very different from what we see in our inbox today. Too many companies sent us press releases about how much money they raised, and then we never see them again or hear from them again.
But ultimately, funding will be needed to take the idea to the next level. I don’t see how existing traffic alone can grow the market to momentum (to steal a term from Etsy CTO Rachel Glaser discussing what it takes to grow a market).
On the one hand, I like the simplicity of Dan The Tire Man’s sales policies. Have you read eBay’s terms lately…?
But again, a little more detail should be included to give potential sellers more information on how disputes are handled such as non-delivery claims, missing items, lost or damaged items, items refused/returned, etc. inevitably face disputes between buyers and sellers.
Many years ago I sold parts in the P&A category, but mostly performance parts. We sold springs and shocks that might fit a market that was primarily wheel and tire oriented, such as Dan The Tire Man.
If I was in this industry today, I would give it a serious try with a few popular items to see if the market could deliver results.
But I would also consider that I am in a retail market.
Like Amazon, if you have something that sells well, you reveal your success to the company which is still primarily an online retailer, not a pure marketplace.
Interested sellers can visit Dan The Tire Man website to learn more about selling in the marketplace.
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