Amazon Autos: E-commerce giant is now a car dealership, starts selling Hyundai cars in 48 US cities

Amazon, the e-commerce juggernaut, has officially ventured into car sales, kicking off its new partnership with Hyundai to sell vehicles directly online. Starting today, the Amazon Autos program will enable shoppers in 48 US cities to browse and purchase Hyundai cars through Amazon’s platform. This marks a significant step in Amazon’s expansion into high-ticket retail categories and promises to shake up the traditional car-buying experience.

Through Amazon Autos, customers can filter cars by make, model, trim, colour, and features. The platform also provides transparent pricing and an instant trade-in evaluation for current vehicles, calculated by an independent third party. Buyers can opt for financing options or pay in full and schedule pick-up times at participating dealerships. It’s a streamlined approach designed to make the car-buying process easier and more efficient.

Transforming the car dealership model

For Hyundai dealers, this partnership is a win-win. It allows them to tap into Amazon’s massive customer base without the burden of managing an online platform or inventory system. Amazon’s platform eliminates many pain points associated with traditional dealership websites, which studies show often fail to meet basic user experience standards. With 69% of car buyers wanting to conduct more of the purchase process from home, Amazon’s user-friendly platform could fill a glaring gap in the market.

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For Amazon, this move represents an opportunity to enter a lucrative sector without the logistical headaches of storage or shipping. The partnership is initially limited to new cars but could eventually extend to other manufacturers and even used cars, broadening Amazon’s footprint in the auto market.

Challenges and opportunities in online car sales

While Amazon’s foray into car sales looks promising, it’s not without challenges. Financing, for instance, will still be handled by dealerships, which means Amazon has little control over interest rates or lending practices. Dealerships often add markup to loans, which can result in higher costs for consumers. Amazon’s middleman role may simplify the buying experience, but it doesn’t fully eliminate traditional dealership practices.

Additionally, online car sales have proven to be a complex market, slowing Amazon’s entry into this space. Yet, by minimising direct dealership interactions and leveraging its trusted platform, Amazon could ease the buying process for customers frustrated with traditional methods.

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A bold step for Amazon and the auto industry

Amazon’s move into car sales signals a significant disruption for both the automotive and retail industries. For now, Hyundai buyers in cities like New York, Los Angeles, and Atlanta can enjoy a simplified purchase experience.

With plans to expand to more regions and manufacturers, Amazon’s entry into this space could reshape how cars are bought and sold, offering a modern alternative to the old-school dealership model. Just don’t be surprised if your next Amazon recommendation suggests a Hyundai alongside your paper towel order.