Amazon Ventures into Auto Sales with Hyundai Partnership, Launching Online Car Marketplace
In a significant move beyond its origins as an online bookseller, Amazon has officially entered the automotive industry. Teaming up with Hyundai, the e-commerce giant revealed at the 2023 LA Auto Show that it plans to commence selling vehicles directly on its website, starting in the second half of 2024. Hyundai models will pioneer this venture on Amazon.com's U.S. platform, with other brands expected to follow suit later in the year.
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The upcoming Amazon car sales section is poised to revolutionize the vehicle purchasing experience. It empowers customers to peruse a diverse range of vehicles in their local area, allowing customization based on preferences such as model, trim, color, and features. Following the selection, customers can seamlessly proceed to complete the transaction online, choosing their preferred payment and financing options. Amazon's innovative approach even includes the option for customers to either pick up their purchased vehicle or have it conveniently delivered by their local dealership.
While Amazon has been selling car accessories and providing a platform, "Amazon Vehicle Showrooms," for manufacturers to showcase their offerings, this new initiative represents a significant leap, enabling customers to make actual vehicle purchases directly through the platform.
Amazon emphasizes that this unique shopping experience aims to "create another way for dealers to build awareness of their selection and offer convenience to their customers." Notably, this model still involves dealerships, ensuring they remain an integral part of the process. When vehicles are sold on Amazon, the local Hyundai dealer will be recognized as the official seller.
Mike Sullivan, president and owner of several LA-area dealerships, including Hyundai Santa Monica, expressed enthusiastic support for the partnership during the LA Auto Show. He stated, "We're now partnering with one of the world's leading digital retailers. They've led the way in delivering customer convenience, and now they're going to help us take our customer experience to the next level."
In addition to the groundbreaking online car sales collaboration, Hyundai and Amazon announced further partnerships. Hyundai is set to leverage Amazon Web Services as its preferred cloud provider and integrate the Alexa voice assistant into the automaker's next generation of vehicles, starting in 2025.
