Amazon's latest deal with Hyundai marks a significant milestone as the e-commerce giant ventures into online car sales, starting next year. This partnership allows Hyundai dealerships to list and sell cars on Amazon's platform, enabling customers to browse, purchase, and choose between picking up their car at a dealership or having it delivered to their doorstep.
Notably, while Amazon serves as the intermediary platform, the ultimate seller remains the dealership. This strategic move aims to offer customers a seamless car-buying experience while providing dealers with an additional avenue to showcase their inventory and cater to consumers' convenience.
Amazon's foray into the automotive space has been gradual, previously offering virtual showrooms, price comparison tools, and selling specific car parts and accessories on its platform. Moreover, as part of this collaboration, Hyundai vehicles will integrate Amazon's Alexa voice assistant by 2025, while Hyundai plans to utilize Amazon Web Services (AWS) for cloud services.
The initiative addresses the common frustration associated with traditional car shopping experiences, positioning itself as an alternative to the conventional dealership model. With Tesla's success in direct-to-consumer sales, Amazon's approach, in collaboration with Hyundai, navigates existing regulations by maintaining the dealership's integral role in the purchasing process.
While laws in 48 states restrict manufacturers from direct sales to consumers, Amazon's partnership with Hyundai bypasses these restrictions, leveraging Amazon's massive customer base to streamline the car-buying process without disrupting the dealership model. This move is poised to simplify car purchasing by offering an additional avenue on Amazon's widely accessed platform.