It’s been nearly three decades since Amazon began selling books online. Obviously, things have changed. Amazon now sells a range of products, including groceries, clothing, electronics, and prescription drugs. The ever-insatiable retail giant loves to break new ground, which is why it will begin selling cars in late 2024.
The new e-commerce venture was announced by Amazon and Hyundai during the 2023 Los Angeles Auto Show. It’s a very strange partnership. Hyundai will be the first automaker to sell its vehicles on the Amazon storefront, and it promises to integrate Alexa with its next-gen cars, trucks, and SUVs. Also, Hyundai will use AWS as its primary cloud service provider, but this is just a footnote to the whole “selling cars on Amazon” thing.
No, Amazon is not becoming a dealership. Under this partnership, Amazon will act as an intermediary online storefront for Hyundai—you buy the car on Amazon, the money goes to Hyundai, and you pick up the car at your local dealer. If you want a model or trim that isn’t available in your area, the dealer will order it, and you’ll have to wait a bit before picking it up. (In case you’re wondering, the dealer that gives you the car will be listed as the seller of record.)
Obviously, the addition of vehicles to Amazon’s storefront is a very weird thing. But it’s really just an extension of the Vehicle Showroom that went live on Amazon several years ago. You can already browse and customize a ton of vehicles in Amazon’s showroom, and when you’re done, Amazon will tell you how to find and purchase the vehicle. Hyundai was one of the first automakers to join the online showroom, so today’s partnership kinda-sorta makes sense.
Hyundai will begin selling cars on Amazon in late 2024. If Amazon’s Vehicle Showroom is any indication, several automakers will follow Hyundai’s lead. It’s worth noting that Carvana and CarMax, which are both struggling, are now Amazon competitors. If Amazon is successful in this venture, the fledgling world of web-based vehicle retail will be turned on its head.
Source: Amazon & Hyundai
