Amazon to Enter Car Sales Market with Amazon Autos
Imagine adding a brand new car to your online shopping cart. Well, with Amazon Autos that no longer seems so farfetched!
On December 10, Amazon launched its newest venture – Amazon Autos. In partnership with Hyundai, Amazon Autos aims to enable consumers to browse and purchase cars online directly from dealerships.
While this sounds like an exciting prospect, you can’t help but wonder how such an endeavor can be pulled off. For one, you may be wondering “How can I get my newly purchased vehicle?” or “Can I do a test drive of my preferred car?”. To better understand the workings of Amazon Autos, let’s dive into some of the key points of this launch.
Amazon Looks to Get Foothold in Massive Auto Market
There’s few product categories that Amazon has no presence in but the massive market for new vehicles is one of them. The number of new cars sold in America is estimated to be 16 million in 2024 and Amazon wants a chunk of that market.
Starting on December 10th, consumers can purchase new Hyundai automobiles directly from Amazon with many caveats. This isn’t the first time consumers have been able to order cars directly from a website and avoid the dealership. Customers visit Tesla’s website, select a model, customize features such as battery range, color, and interior, and place an order with a non-refundable deposit.
With Amazon, the whole process doesn’t entirely remove the dealership experience (sorry, there’s no same-day Prime Day delivery) but it does remove much of the friction such as negotiation and browsing in-person.
What Role Does Amazon Play in its Partnership with Hyundai?
Hyundai has teamed up with Amazon in order to allow customers to easily buy brand new cars online with the help of Amazon’s e-Commerce tools. Amazon Autos offers the following features and capabilities:
- Browsing vehicles according to make, model, trim, color, features, etc.
- Transparent pricing
- Access financing or make payments in full
- Instant valuation and seamless trading of existing cars toward the price of a new car
- Scheduling pick-up times from car dealerships
- Complete purchases and paperwork online
Fan Jin, Amazon Autos’ global head, said “With Amazon Autos, we’re bringing the simplicity and ease customers expect from Amazon to car shopping, one of their largest purchases, while offering dealers a new channel to connect with a broad audience.”
Only One Car Brand Offered at this Time
As of now, Amazon Autos will only be selling Hyundai cars but are planning to include a wider selection of automotive brands in the next year.
Can You Buy Secondhand Cars from Amazon Autos?
Amazon Autos will exclusively showcase brand new cars. Any dealership who wishes to sell their cars via the platform must meet the following requirements:
- Must have transparent and negotiation-free pricing with dealer-installed options, rebates, and incentives.
- Must meet Amazon’s customer experience standards both online and at the dealership.
- A note on this point: It's not quite clear what these “experience standards” mean, but historically the experience of buying a car hasn't exactly been symbolic of a frictionless and enjoyable experience for most.
- Must implement Amazon’s purchasing process and software requirements for online vehicle sales, including document collection, vehicle hold, payment, pickup, exchange, and cancellation.
Car Trade-Ins
According to Amazon, consumers can complete trade-ins effortlessly through their platform by simply answering questions about their vehicle’s current condition. Valuation is provided by a third-party and can be applied toward the new car’s price. As of writing, it is not clear who the third-party will be. Trade-ins are completed by dropping off your existing vehicle at the dealership and picking up your new one.
Transparent and “Negotiation-Free” Pricing
The inability to haggle prices may limit or prevent customers from getting better deals for their purchases. Amazon Autos promises transparent, haggle-free pricing which shoppers will be able to view at the checkout, complete with taxes and any additional fees.
No Test Drives
It’s also worth noting that there seems to be no way to test your preferred car before making a purchase, which could be helpful in determining which vehicle best fits your needs.
Picking Up Your Brand New Car
At this time, Amazon Autos has no door-to-door delivery for vehicles and customers will have to pick up their brand new cars from the dealership. However, customers will have the capability to choose the pickup date and dealership location.
Limited Locations
Amazon Autos is only available in 48 U.S. cities as of now and is yet to announce any additional locations. These cities are:
| Atlanta | Fond Du Lac | Phoenix |
| Austin | Ft. Myers/Naples | Pittsburgh |
| Baltimore | Harrisburg-Lancaster-Lebanon-York | Portland |
| Beaumont-Port Arthur | Harrisonburg | Providence |
| Birmingham | Hartford | Raleigh-Durham |
| Boston | Houston | Salt Lake City |
| Champaign/Springfield | Indianapolis | San Antonio |
| Charlotte | Jacksonville | San Diego |
| Chicago | Los Angeles | San Francisco |
| Cincinnati | Miami | Seattle |
| Cleveland | Milwaukee | Sheboygan |
| Columbia | Minneapolis-St. Paul | Springfield |
| Columbus | Nashville | St. Louis |
| Dallas | New York | Tampa |
| Denver | Orlando | W. Palm Beach |
| El Paso | Philadelphia | Washington D.C. |
Conclusion: The Future of Car Sales
While there are aspects of this venture that still need to be refined, there’s no denying that Amazon Autos will have a hand in reshaping our notions of the car buying experience. Currently, it seems as though Amazon acts more as a deal facilitator than a car seller, in the sense that you still need to go to the dealership to pick up your new vehicle and complete your purchase. Only time will tell if Amazon Autos will remain as an intermediary between car buyers and dealerships or become a full-blown car-selling platform.
