The inevitable has happened – Amazon, once a bookseller, is venturing into the automobile industry.
Teaming up with Hyundai, the e-commerce giant made a significant announcement at the 2023 LA Auto Show, revealing its plans to start selling vehicles directly on its website in the second half of 2024. This move signals a transformation in the way people purchase cars, and the impact could be substantial.
In a groundbreaking initiative, Amazon will feature Hyundai vehicles as the first offerings on its U.S. online store, with plans to include other brands later in the year.
This marks a shift from Amazon’s existing services, such as selling car accessories and running the “Amazon Vehicle Showrooms” site where manufacturers advertise vehicles but couldn’t be directly purchased.
The Amazon car sales section is designed to provide customers with a seamless experience, enabling them to browse vehicles based on various preferences like model, trim, color, and features.
The inevitable has happened – Amazon, once a bookseller, is venturing into the automobile industry. Teaming up with Hyundai, the e-commerce giant made a significant announcement at the 2023 LA Auto Show, revealing its plans to start selling vehicles directly on its website in the second half of 2024. This move signals a transformation in the way people purchase cars, and the impact could be substantial.
In a groundbreaking initiative, Amazon will feature Hyundai vehicles as the first offerings on its U.S. online store, with plans to include other brands later in the year.
This marks a shift from Amazon’s existing services, such as selling car accessories and running the “Amazon Vehicle Showrooms” site where manufacturers advertise vehicles but couldn’t be directly purchased.
The Amazon car sales section is designed to provide customers with a seamless experience, enabling them to browse vehicles based on various preferences like model, trim, color, and features.
Once they’ve made their choice, customers can proceed to check out online, selecting their preferred payment and financing options. In a move that combines the digital shopping experience with the traditional dealership model, customers will have the flexibility to either pick up the vehicle in person or have it delivered by their local dealership.
The announcement signifies Amazon’s ambition to revolutionize the automotive retail space. The platform aims to enhance awareness for local dealerships and provide added convenience for customers.
Notably, this model differs from direct sales approaches that entirely bypass the dealership structure. When a vehicle is sold on Amazon, the local Hyundai dealer will be the official seller, maintaining the current dealership business model.
During the LA Auto Show, Mike Sullivan, the president and owner of several LA-area dealerships, including Hyundai Santa Monica, expressed his support for the partnership with Amazon.
He highlighted the potential of working with one of the world’s leading digital retailers and the opportunity to elevate customer experiences to new heights. The collaboration is expected to leverage Amazon’s extensive reach and marketing power to connect with a broader customer base.
The partnership between Hyundai and Amazon goes beyond vehicle sales. Hyundai revealed plans to utilize Amazon Web Services as its preferred cloud provider, emphasizing a move towards digital integration.
Additionally, the integration of Amazon’s voice assistant, Alexa, is slated for Hyundai’s upcoming vehicle models starting in 2025, signaling a broader collaboration between the tech giant and the automaker.
As Amazon delves into the automotive sector, it not only opens up new possibilities for customers but also challenges the traditional methods of car buying. The convenience of online shopping meets the established dealership network, creating a hybrid model that could redefine the future of car sales.
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