Amazon is hitting the open road, announcing Thursday that it will start selling cars directly to consumers through its website.
The e-commerce giant has partnered with Hyundai, making the automaker’s vehicles the first that customers can purchase on Amazon.com when sales begin in the second half of 2024.
Amazon Car section
The new Amazon Car section will allow shoppers to search for Hyundai models by preferences like trim, color, and features.
Customers can complete the entire transaction online through Amazon’s checkout process, from vehicle selection to financing. Cars will then be delivered by the local Hyundai dealership that finalized the sale.
Full-fledged auto transactions
While Amazon has sold auto accessories and hosted manufacturer listings on its “Amazon Vehicle Showrooms” before, this takes the retail giant into full-fledged auto transactions.
The company indicated more automotive brands could join Hyundai on Amazon’s digital car lot in 2024.
Welcoming the new sales channel
Hyundai and participating dealerships are welcoming the new sales channel as a way to expand reach and convenience.
“We’re now partnering with one of the world’s leading digital retailers,” said Mike Sullivan, president of several Los Angeles-area dealerships, including Hyundai Santa Monica.
“Amazon also brings massive reach and marketing power to connect to more customers. We can’t wait to get started.”
Digitizing the buying journey
With Amazon’s auto entry, dealerships avoid the direct sales threat of companies like Tesla. Instead, this digitizes more of the buying journey while still rewarding dealer partners as the sellers of record.
For Amazon, it opens a new revenue stream while leveraging its company’s e-commerce and cloud services.
