CarNext
The challenge
CarNext's mission is to change the way people buy a used car. Traditionally, the used car market has been fragmented, localised and inefficient. To address these limitations and transform the experience for everyone involved in the used car market - whether that’s customers, traders or suppliers - CarNext decided to build a remarketing platform and choose NovaFori to deliver the solution.
The majority of CarNext’s European vehicles are sold via online auction, with the remaining ~20% retailed by the company through its own outlets.
As its existing system was approaching end of life status, CarNext had a requirement for fully integrated global auction platform for vehicle remarketing, which combined auction technology with a modernised look and feel. In addition, it was crucial that the system enabled cross-border trade, allowing the highest price to be achieved regardless of trader location and physical location or registration of the vehicle.
In addition, with a consistent flow of used vehicles in their B2B marketplace servicing professional resellers, they also wanted to embrace the power of data science to reduce the friction of finding the right vehicles for the right buyers.
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The solution
Given NovaFori’s proven track record of building enterprise-scale auction and trading platforms, CarNext approached NovaFori to build a solution capable of serving thousands of concurrent bidders, and hundreds of internal users across Europe, available to trade on a 24/7*365 basis.
On the data science side, NovaFori deployed its recommendation engine to the CarNext B2B marketplace. The engine firstly recommends vehicles based on previous buyer behaviour. The recommendation is then refined based on user actions on the platform such as bids, substitutions and won lots, resulting in tailored recommendations boosting trade volumes.
As a result, professional traders now bid on a wide variety of CarNext cars in 24 languages and across multiple countries in Europe on a 24/7*365 basis. Crucially, CarNext can demonstrate that the highest price has been achieved across its portfolio due to the combination of auction mechanism and cross-border trade capability. Vehicles recommended via NovaFori's recommendation engine have accounted for up to 30% of vehicles sold on CarNext on a monthly basis, with a significant increase observed in average sales prices.
The result
- Professional traders now bid on a wide variety of LeasePlan cars in 15 languages and across more than 30 countries on a 24/7*365 basis. Crucially, CarNext can demonstrate that the highest price has been achieved across its portfolio due to the combination of auction mechanism and the cross-border trade capability.
- Vehicles recommended via NovaFori's recommendation engine have accounted for up to 30% of vehicles sold on CarNext on a monthly basis.
- Observed average sales price in per vehicle, in regions where the recommendations engine is deployed, have observed prices increases of up to 7%.
Auction Platform
- Multiple trading models supported (English Forward, Sealed Bid and Fixed Price)
- Multiple and concurrent auctions, auction progress tracking, international auctions and auction management
- Extensive bid management, manual and automated bid placement, bidder information, and bidder user interface
- Saved search functionality, allowing easy retrieval of search results
- View of the total exposure of a user's bids
- Third party integration via APIs
- Automated cross-border sales, multi-language and country-specific workflow
- Full integration with Inventory Management and CRM systems
- Available as web and mobile app (Android & iOS).
Data Science
- Buyer-personalised recommendations - deploys an algorithm that learns buyer preferences from historical bid event data.
- Recommending similar alternatives - deploys an algorithm to learn what buyers collectively regard as similar product types.
