Amazon Introduces Online Car Sales, Disrupting Traditional Dealerships

Amazon has recently announced its plan to enter the online car sales market, aiming to revolutionize the way customers purchase vehicles. Starting from the latter part of 2024, customers in the United States will have the convenience of choosing, customizing, and buying a vehicle directly from Amazon’s website. This move, according to Marty Mallick, Vice President of Amazon, aims to change the ease with which customers can buy vehicles online.

While initially limited to Hyundai vehicles, Amazon’s online selection will provide customers with the opportunity to browse a local inventory and choose a financing option through Once the purchase is made, customers can either pick up the car from the dealership or opt for home delivery, providing an effortless and convenient experience.

As a result of this announcement, traditional car dealerships and rival retailers experienced a decline in their stock prices. Carvana, an online used-car retailer, saw a drop of up to 9% on Thursday, while shares in CarMax, AutoNation, and Asbury Automotive Group also fell. This downturn reflects the growing shift towards online vehicle purchases, which has been further accelerated by the COVID-19 pandemic.

This expansion builds upon a previous collaboration between Amazon and Hyundai, which launched a digital showroom on in 2018. In addition to enabling buyers to access Amazon’s Alexa voice assistant from their cars, this partnership is expected to provide dealers with increased awareness of their vehicle selection and offer greater convenience to customers.

While Amazon’s entrance into the online car sales market is expected to boost sales for Hyundai, the company continues to value the dealership model for its crucial role in vehicle services. By integrating Amazon’s platform, Hyundai hopes to enhance the car buying experience while still embracing the traditional dealership structure.

As the automotive industry undergoes a digital transformation, analysts predict that online sales will become a significant component of the market. Amazon’s entry into online car sales further solidifies the shift towards digital retail in the automobile industry, providing customers with more efficient and convenient options for purchasing vehicles.

Frequently Asked Questions (FAQ)

1. When will Amazon start selling cars online?

Amazon plans to start selling cars online from the latter part of 2024.

2. Which country will initially have access to Amazon’s online car sales?

Customers in the United States will be the first to have access to Amazon’s online car sales.

3. Can customers customize their vehicles through Amazon’s online car sales?

Yes, customers will have the ability to choose and customize their vehicles through Amazon’s online car sales platform.

4. Will customers have financing options available through Amazon’s online car sales?

Yes, customers will be able to choose a financing option from when purchasing a vehicle online.

5. What delivery options are offered for cars purchased through Amazon?

Customers can either pick up the car at a dealership or opt for home delivery when purchasing a vehicle through Amazon.