Online used-vehicle retailer Shift Technologies logged triple-digit, year-over-year growth in e-commerce sales and revenue as consumers continued to purchase vehicles through online avenues through 2020.
Unit sales increased 147% YoY to 4,666 vehicles, and revenue increased 168% to $73.4 million, two records for the company, said Toby Russell, co-chief executive, during the company’s fourth-quarter earnings call. Shift went public through a special purpose acquisition company (SPAC) in October 2020.
“It was also the first time in our history where we’ve grown the business sequentially from the third quarter to the fourth quarter, overcoming the negative seasonal effects we typically experienced at this time a year,” Russell said.
Increases in revenue were fueled by growing attachment rates of ancillary products, which grew more than 300% in the fourth quarter, Russell said. “We continue to invest in these offerings, including F&I solutions to improve monetization per unit over time, increasing attach rate and driving gross margin expansion.”
Increasing inventory continues to be a priority for Shift, which boosted its saleable inventory 148% from the beginning of December 2020 to the beginning of March 2021. Still, inventory remains tight.
“Throughout the second half of 2020, while we were very successful in acquiring and growing total inventory, our saleable inventory remained well below target levels since midsummer,” Russell said.
“Now that our saleable inventory position is more in line with what we need and sets us up for strong growth in 2021, we expect days to sell to be in the 48- to 58-day range throughout the year,” Russell noted.
Auto Finance Innovation Summit, the premier event for technology in auto finance, returns March 16-17, 2021, as a virtual experience. The virtual experience will offer the quality networking and education of past events, all through an online platform. To learn more about the 2021 event and register, visit www.AutoFinanceInnovation.com.