Amazon is taking another step in expanding its services. The American tech giant has announced that it is now also selling new cars via its platform.
The development is limited to Hyundai models for now and will target 48 cities in the United States, including major metropolitan areas such as San Francisco and Washington D.C. The new service promises customers a more transparent and convenient way to buy cars, said Fan Jin, Amazon's head of global car services.
The launch of the online car sales follows an intensive collaboration between Hyundai and Amazon, which started more than a year ago. The goal was to lay a solid foundation for this revolutionary concept. Through the platform, customers can configure Hyundai models to their liking, view financing options and complete the transaction completely digitally. Customers who want to trade in an old vehicle can also use an online calculator to determine the trade-in value.
While Hyundai is currently the only manufacturer offering cars directly through Amazon, models from BMW and Nissan are also listed on the platform. However, these are not yet available to order directly. Amazon has confirmed that the offering will be expanded to include more brands and local dealers next year.
no home delivery
A striking aspect of this service is that Amazon does not deliver the cars to homes, as customers are used to from their regular purchases via the webshop. Instead, buyers must pick up their new vehicle at the nearest Hyundai dealer. This decision is partly influenced by the complex regulations surrounding car trading in the United States. Each of the 50 states has its own laws regarding the sale of vehicles, making direct sales by Amazon legally unfeasible for the time being.
Amazon aims to simplify the often complicated and time-consuming experience of buying a car. By offering digital contracts and transparent pricing options, the company is trying to engage potential buyers. As with many products on the platform, customers can also leave reviews during car transactions, setting a new standard in car sales.
The U.S. auto market is huge, with millions of vehicles sold each year. Amazon’s entry into the space is therefore a strategic move that could lead to a significant shift in how Americans buy their vehicles. Major competitors in the auto retail industry, such as Carvana and traditional dealerships, will likely be watching the growth of this new model.
future perspective
With the introduction of this platform, Amazon is once again positioning itself as a pioneer in e-commerce. Although the company is still dependent on physical dealerships for the time being to handle transactions and deliveries, this step could be the first in a broader transformation of the auto trade. Fan Jin does not rule out the possibility of the service being rolled out globally in the future.
The coming months will be crucial for Amazon to further develop this new initiative and overcome potential obstacles. The US auto market is not only large, but also highly competitive. How customers and competitors respond to this new service will determine whether Amazon can become a dominant player in this sector as well.
