Amazon Is Expanding Its Car-Buying Platform With New Brands

Digital Showroom

Shopping for and buying a new vehicle is something people take very seriously; what used to take a whole day or more has been condensed into a much easier experience in the digital space. While physical brick-and-mortar showrooms still exist, more people, since the growth of e-commerce, have turned to the digital space to help inform their buying decisions more.

The biggest e-commerce platform, Amazon, saw an opportunity to utilize its expertise by launching Amazon Autos in 2024. Now the company is looking to expand the platform's capabilities and offerings.

The More The Merrier

Amazon Autos began with Hyundai as its first brand partner. The platform just announced that Amazon Autos has secured a group of new brands to onboard, including Kia, Mazda, Subaru, Chevrolet, and Jeep. Primarily, the platform serves as a way for car buyers to browse local dealers' inventories, complete financing paperwork, and generally reduce the time spent in the showroom.

It's the dealers who pay Amazon to have themselves listed on the platform. This helps them amplify their selling and marketing activities online, but most importantly, buyers can reduce the complicated car-buying process in the comfort of their own homes before heading to the dealership.

Even with this optimistic approach to online car buying, dealers claim adoption is slow, mainly due to logistical issues with financing, compliance, and delivery coordination. Some steps still require in-person transactions, and that is what's limiting a fully digital car shopping experience.

Not a Replacement

Amazon Autos does say, though, that the platform isn't there to replace physical dealerships; it merely helps buyers and gives them multiple options throughout their customer journey. While some still prefer to buy a car in person, the continued growth of younger, more digitally savvy car buyers is a key segment for the platform moving forward.

For reference, it is estimated that around 1.5-2 million cars were bought online last year, representing a growing but small share of total sales, at 3%.

Currently, this service and platform are offered in 130 U.S. cities, with key markets such as Los Angeles and New York. Amazon Autos also offers used cars, and is different from Amazon Automotive, the parts and accessories selling side of the business.

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