Amazon sells millions of different products: clothes, food, lawnmowers, toilets, and even houses. Not much is missing, especially now that we’re almost able to buy cars on Amazon. Starting in 2024, Amazon plans to revolutionize car buying by enabling customers to purchase Hyundai vehicles online directly from its platform. Amazon’s latest move, in partnership with Hyundai, may significantly impact the auto industry. The news was strong enough to impact the stock prices of companies like Carvana and Autotrader in mid-November. This move is a natural progression for Amazon and its digital showrooms, presenting an unprecedented offer to consumers.
The concept is easy to understand: customers can search for new Hyundai cars, configure them according to their preferences, and complete the transaction directly on Amazon, choosing between home delivery or pickup at their local dealership. This is a natural move, considering Hyundai’s digital showroom introduced on Amazon in 2018. There are also plans for integrating Amazon’s technology, including Alexa, into Hyundai vehicles after 2025.
While I can’t wait to ask Alexa how many miles are left until the next Buc-ee’s, there may be some issues down the road. The traditional auto industry has a very complex model, and its state-specific regulations will be challenging. While companies like Tesla are already exploring direct online sales, Amazon’s entry into this industry is more questionable. Will the platform be a vehicle (pun intended) for change, or will it struggle when facing dealerships and regulations?
The announcement hit the auto market hard. The impact on the stock market shows how potentially game-changing this could be for the industry. However, will customers trust Amazon for such important purchases, especially when other brands are not available online yet?
Amazon’s venture into car sales promises speed and efficiency for consumers, but could also shake up the industry more than expected. For traditional dealerships, it’s like watching a self-driving car drive by: wondering about the future, and worrying about what the consequences may be.
Amazon and Hyundai’s partnership may create a future where buying a car is as easy as buying a book online. However, the car-buying experience is so unique that it may be challenging to get customers to trust the process. While visiting a dealership isn’t always the best experience, it’s hard to imagine what it would be like to not see, touch, and experience cars the traditional way. The complex industry and regulatory environment make things even more challenging. We’ll see how things go for Amazon and Hyundai. If this works, we can wonder what is off-limits for Amazon to sell?