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Amazon enters the online car sales market

The news: Consumers in 48 US cities can now buy a new Hyundai from their local dealership through Amazon with the launch of Amazon Autos.

How it works: Amazon Autos looks and feels similar to other areas within the Amazon ecosystem; consumers can search for vehicles using criteria such as model, color, features, and trim.

  • Once customers select a vehicle, they can secure financing, electronically sign paperwork, and complete their orders with a few clicks.
  • After finalizing their payment information, customers select a day and time to pick up their vehicle from the dealership.
  • Consumers can also receive an estimated value for a trade-in vehicle that is applied toward the purchase price of a new car.

Our take: While Amazon is entering a crowded market that includes AutoNation, Carmax, and Carvana, it has two clear advantages over those competitors: its massive scale and consumers’ familiarity with its platform.

Amazon understands the power of convenience more than almost any other company. If it can deliver on its promise of making the car-buying process less stressful and annoying, it will gain traction with consumers—assuming it quickly broadens Amazon Autos’ reach beyond Hyundai.

This article is part of EMARKETER’s client-only subscription Briefings—daily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends. To help you finish 2024 strong, and start 2025 off on the right foot, articles like this one—delivering the latest news and insights—are completely free through January 31, 2025. If you want to learn how to get insights like these delivered to your inbox every day, and get access to our data-driven forecasts, reports, and industry benchmarks, schedule a demo with our sales team.

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