Amazon is set to reshape the car buying industry by allowing auto dealers, starting with Hyundai, to sell cars through its e-commerce platform. This move marks a significant shift in Amazon’s foray into the car buying business, as the company has previously focused on providing shoppers with a digital showroom to research and compare vehicles. Now, consumers will have the opportunity to not only browse but also purchase cars directly through Amazon.
Starting in 2024, shoppers will be able to search for available vehicles in their area, make a selection, and complete the entire purchase process on Amazon. They can choose their preferred payment and financing method, and either pick up the car at the local dealership or have it delivered to their doorstep. This new feature aims to enhance convenience for customers while creating an additional avenue for dealers to showcase their inventory and offerings.
Amazon CEO Andy Jassy emphasizes the transformative impact of this partnership with Hyundai, stating that it will streamline the car buying process for customers. In addition to facilitating online sales, Hyundai will also integrate Amazon’s voice assistant, Alexa, into their vehicles starting in 2025. This collaboration further underscores the ongoing convergence between e-commerce and automotives.
While this development is poised to disrupt the traditional car dealership model, it’s important to note that the auto dealer remains the ultimate seller. Established automakers like Hyundai have intricate relationships with dealers, often supported by laws that require new vehicles to be sold through franchise dealerships. However, tech-savvy electric vehicle manufacturers like Tesla have navigated these obstacles by finding alternative ways to sell directly to consumers.
As the automotive industry evolves, it’s apparent that online platforms are playing an increasingly prominent role in the car buying process. Companies like Carvana and Carmax have capitalized on this trend, focusing on selling used vehicles online. With the entry of Amazon into the market, a seismic shift in the car buying landscape is on the horizon.
Frequently Asked Questions (FAQ)
1. Can I buy a Hyundai car directly on Amazon?
While Amazon will allow you to purchase a Hyundai car on its platform, the ultimate seller is the auto dealer. Amazon’s collaboration with Hyundai enables customers to buy cars online and choose between picking up the vehicle at the dealership or having it delivered.
2. How will this partnership benefit car dealers?
The partnership between Amazon and auto dealers aims to build awareness of dealers’ vehicle inventory and offer enhanced convenience to customers. By showcasing their selection on Amazon’s platform, dealers have a broader reach and the opportunity to attract new customers.
3. Will other automakers follow suit and partner with Amazon?
It remains to be seen if other automakers will forge similar partnerships with Amazon. However, this collaboration serves as a testament to the growing trend of online car sales and the potential for further disruptions in the industry.
4. Will Amazon’s integration of Alexa impact future car buying experiences?
With Hyundai planning to integrate Amazon’s voice assistant, Alexa, into their vehicles, it’s likely that voice-activated features will become more prevalent in future car buying experiences. This integration can enhance the overall car ownership experience and further bridge the gap between e-commerce and the automotive industry.