It was inevitable. Amazon, which started out selling books, is getting into the car business.
The e-commerce giant along with new partner Hyundai announced Thursday at the 2023 Los Angeles Auto Show that it will begin selling vehicles on its website in the second half of 2024. Hyundai vehicles will be the first vehicles sold at its store Amazon.com in the US with other brands to follow later this year.
Amazon’s auto sales section will allow customers to shop for vehicles in their area based on a range of preferences, including model, trim, color and features, select the car they prefer, then check out online with payment options and financing they have chosen. Customers will be able to purchase a vehicle online and then pick it up or pick it up at their local dealership, according to Amazon.
Amazon already sells car accessories and operates an “Amazon Vehicle Showrooms” website that allows manufacturers to advertise. But until now, customers couldn’t actually buy that car, truck, or SUV they were researching.
Amazon says this shopping experience “will create another way for dealers to gain awareness of their selection and provide convenience to their customers,” language that suggests dealerships are on board with the move. The structure still rewards dealerships, unlike direct sales models that bypass the business model entirely. When the vehicles go on sale on Amazon, the local Hyundai dealer will be the seller of record.
Mike Sullivan, president and owner of several Los Angeles-area dealerships, including Hyundai’s Santa Monica location, publicly supported the news while on stage at the Los Angeles Auto Show.
“We are now partnering with one of the leading digital retailers in the world,” said Sullivan. “They have pioneered customer convenience and will now help us take our customer experience to the next level. Amazon also offers huge reach and marketing power to connect with more customers. We can’t wait to get started.”
Hyundai and Amazon are also collaborating in other areas, the companies announced Thursday. Hyundai said it will use Amazon Web Services as its preferred cloud provider and integrate the Alexa voice assistant into the automaker’s next-generation vehicles from 2025.
