Virtual Margins in the online tyre business
In recent years the online tyre market has swollen in size (as observed in other retailer sectors). Whilst the proportion of the total market controlled by this sector remains limited, the fact that the number of different e-tail platforms is continually proliferating means online sales could already account for as much as 3 per cent of the European replacement market. With this in mind, knowing more about how these businesses operate is of interest to everyone in the tyre trade.
The latest insight is that the average tyre offered for sale online costs consumers around ÂŁ69.14, meaning the myth that âvirtualâ margins are too thin to make business sense could be evaporating. However, the most commonly offered tyre online is characterised as a mid-range brand costing around ÂŁ60. It seems making money online is all a question of business model.