General dimensions are extremely important in e-commerce. Much like exactly what occurred into the basic product ecommerce industry with Amazon dominating the U.S. Room, when Carvana establishes it self while the leading online car dealer and volumes pass a particular limit, it is extremely tough for almost any competitor to scale.
Need yields demand that is further. As Carvana moves into brand new markets, demand will increase, which allows Carvana to hold more stock. A wider automobile stock further improves its offering over the market that is entire allowing it to boost share of the market. Greater volumes and much more inventory mean more IRCs and therefore faster distribution times and reduced transport expenses.
A customer is looking for, sell it for a lower price, and deliver is faster if one day Carvana has 100,000 vehicles available on their website while the second largest online car dealership has 20,000, Carvana is more likely to have the type of car. That drives more clients to acquire from Carvana, which assists them grow car inventory further, which appeals to more clients, etc.