Amazon Will Soon Sell Cars Online

Facts

• Online retail giant Amazon last Thursday at the 2023 Los Angeles Auto Show announced that next year it would start selling Hyundai cars on its website.¹
• Previously, Amazon allowed shoppers to research and compare vehicles in its digital showrooms, but there was no mechanism for purchasing one through Amazon.²
• Car shoppers in 2024 will be able to search for vehicles in their area based on the model, trim, and color. They’ll then be able to check out online with the payment option and financing of their choice.³
• In a statement, Amazon CEO Andy Jassy said his company plans to change the 'ease with which customers can buy vehicles online.'³
• As part of this deal, Hyundai will name AWS, Amazon’s cloud computing unit, as its preferred cloud provider, and the next generation of Hyundai vehicles will feature Amazon’s voice assistant, Alexa.⁴
• Car sellers renowned for their online presence saw their stocks drop following Amazon’s announcement. Carvana was down more than 5% by the end of the day.⁵

Sources: ¹USA Today, ²CNBC, ³FOX News, ⁴Independent and ⁵BBC News.

Narratives

• Narrative A, as provided by GeekWire. This move into car sales is part of Amazon's natural progression to making everything easier for consumers. The complex task of purchasing a vehicle will now be as simple as buying any product on the e-commerce giant’s site. Best of all, this market disruption will be done in partnership with local car dealers instead of against them. It's a win all around.
• Narrative B, as provided by CNN. It remains to be seen how many people will feel comfortable purchasing a vehicle online. Vehicle options and financing can be complicated without an in-person dealer to assist with the shopping process. The simplicity of the interface is going to be key, as will managing the expectations of the users who are used to Amazon Prime seamlessly delivering their orders. Much remains to be known if Amazon can successfully lurch into the online auto industry.