The news: Amazon is expanding its Amazon Autos new-car buying program, adding Kia, Mazda, Subaru, Chevrolet, and Jeep to its existing Hyundai and Ford lineup, per The Wall Street Journal. Hundreds of dealers are now listing inventory across more than 130 cities, including Los Angeles, Dallas, and New York.

How it works: Amazon Autos mirrors the broader Amazon online shopping experience.

• Consumers can search for vehicles by model, color, features, and trim, then move through much of the purchase process online.
• Shoppers can secure financing, review pricing, electronically sign paperwork, and complete the transaction in a few clicks once they select a vehicle.
• They can also receive a trade-in estimate that is applied to the purchase price.
• Final delivery still happens offline, with customers scheduling a pickup time at a local dealership.

Why it matters: Auto is the largest retail category—by far; we expect US auto and parts sales to reach $1.809 trillion this year, including $1.395 trillion from new vehicles alone. That’s more than apparel and home improvement combined, and the vast majority of those sales occur offline.

Relatively few new-car sales have shifted online due to the complexity of the US purchase process, including state franchise laws, financing requirements, manufacturer incentives, and extensive paperwork. While used-car platforms like CarMax and Carvana have made meaningful inroads, new-car transactions remain far more difficult to digitize.

Dealers argue the in-person process is necessary to navigate these variables—from coordinating lenders to applying discounts and running credit checks—reinforcing the industry’s reliance on offline sales.

Implications for car companies and marketers: Amazon doesn’t need to own the entire purchase funnel to generate significant returns from its Amazon Autos initiative.