Amazon now wants to get into the new car market, and for that reason it has reached an agreement with Hyundai to start selling its vehicles in the US starting in the new year.
The retail giant has already announced that from next year – which is just around the corner – prospective buyers will be able to use its websites to search for vehicle models, find out about financing and complete the purchase of Hyundai vehicles on Amazon. com.
Buyers will then only need to visit a dealership of their choice to collect their car. Now the company is putting in the final touches to enable such online purchases that promise to bring yet another change to the way consumers can acquire a vehicle.
If this experiment with sales of new vehicles from various companies is successful, Amazon would reportedly also like to enter the used car or trade-in market. Also, if this experiment succeeds in the USA, the way may be opened for corresponding sales of vehicles electronically in other continents as well, such as for example in Europe.
Car sales are Amazon’s next bet in its quest to dominate e-commerce, and are now being introduced to consumers after the Covid-19 pandemic made online shopping even more popular. Amazon executives want to make buying vehicles through its website as simple as buying toilet paper or dog food, and the company is seeking to forge broad partnerships with several automakers, the Wall Street Journal reported on the effort.
The two companies announced that starting in 2024, US car dealers will be able to sell vehicles from Amazon.com’s online store for the first time – and that Hyundai models will be the first available for such purchases by the retailer’s customers.
In a joint statement, the two companies spoke of a “new digital shopping experience that will make it easier for customers to buy a new car online and then pick it up at their local dealership.” It is also reported that customers will be able to search Amazon for all available vehicles in their area based on a series of preferences, such as model, interior trim, color and other features. They will then be able to purchase it with the payment and financing options they have chosen.
However, the challenges will not be few, since buying a car is usually more complex than buying other consumer goods. For example, it remains to be seen how local dealerships, which have traditionally remained at the heart of most new car sales – and depend for their revenue on the services they offer and the rewards programs offered by manufacturers when they sell more than some goal.
Also, purchases on Amazon are usually more affordable items than a car. The Internet giant will now have to convince those customers that they should make one of the biggest purchases of their lives online, market players told the WSJ. Amazon will also have to deal with different regulations that apply from state to state.
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