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Amazon Autos allows customers to complete an entire car-buying transaction on Amazon’s website and then pick up the vehicle from a local dealership. (Amazon Photo)
Amazon is entering the automotive market with the public beta launch Tuesday of Amazon Autos, a service that allows customers in 48 U.S. cities to shop for, finance, and pick up a new Hyundai vehicle with the familiarity of shopping on the e-commerce giant’s website.
Just over a year since announcing the strategic partnership with Hyundai, the official launch is the realization of Amazon’s desire to try to simplify one of the more complex retail transactions.
Amazon plans to add to the initial selection of Hyundai dealerships and will roll out additional manufacturers, brands, cities, and functionality next year.
“We’re partnering with dealers and brands to redesign car shopping — making it more transparent, convenient, and customer-friendly,” Fan Jin, global head of Amazon Autos, said in a statment. “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.”
Amazon Autos allows customers to:
Browse and search for available vehicles at their local dealer by make, model, trim, color, and features.
Get an instant valuation and trade in their existing vehicle towards the price of the new car.
See transparent, upfront pricing.
Secure financing or pay in full.
Complete the checkout process online.
Schedule a pick-up time at a dealership.
The Amazon Autos homepage featuring the ability to shop for Hyundai vehicles. (Amazon screenshot)
Vehicle shopping and purchases within the Amazon store will come with familiar features like customer reviews, seller (dealership) reviews, add to cart, and Amazon’s familiar checkout process.
The end-to-end experience seizes on the digital capability already utilized by some carmakers, such as electric vehicle manufacturers Tesla and Rivian, who bypass dealerships entirely and sell through their websites.
CNBC reported earlier this year that about 25% to 30% of car buyers want to do some or all of the car-buying process online, and when it comes to electric vehicle buyers, that number jumps to 40%.
Most new car sales still occur through franchised dealerships, which are protected by state laws. By working closely with dealerships, Amazon is positioning its program as a complement, not a competitor, to the traditional car-buying model.
For Hyundai dealers, the partnership is an opportunity to reach a vast audience.
“Listing our inventory on Amazon is a game-changer for how we connect with car buyers,” Steven Suh, general sales manager of South Bay Hyundai said in a statement. “It allows us to showcase our vehicles to millions of daily shoppers, while setting our pricing upfront.”
While services such as Carvana allow consumers to buy and finance used cars online, it’s a small segment of the overall addressable new and used market in the U.S., estimated to be somewhere between $2.5 trillion and $3 trillion, according to CNBC.
Automotive industry journalist Tom Voelk, host of the YouTube channel Driven, previously told GeekWire that Amazon’s move “just makes sense.”
“It’s what the consumer wants, right?” Voelk said. “They want an easy experience. They just want the car that they want, at a fair price.”
Here’s the full list of cities where Amazon Autos is available: Atlanta, Austin, Baltimore, Beaumont-Port Arthur, Birmingham, Boston, Champaign/Springfield, Charlotte, Chicago, Cincinnati, Cleveland, Columbia, Columbus, Dallas, Denver, El Paso, Fond Du Lac, Ft. Myers/Naples, Harrisburg-Lancaster-Lebanon-York, Harrisonburg, Hartford, Houston, Indianapolis, Jacksonville, Los Angeles, Miami, Milwaukee, Minneapolis-St. Paul, Nashville, New York, Orlando, Philadelphia, Phoenix, Pittsburgh, Portland, Providence, Raleigh-Durham, Salt Lake City, San Antonio, San Diego, San Francisco, Seattle, Sheboygan, Springfield, St. Louis, Tampa, W. Palm Beach, Washington D.C.
