Dive Brief:
- E-commerce giant Amazon has launched its retail partnership with Hyundai Motor Co. in 48 U.S. cities. The deal allows car-shoppers to purchase a new Hyundai vehicle on Amazon and schedule pickup at a local dealer, the retail giant announced Dec. 10.
- The vehicles are being offered via Amazon’s new online shopping platform “Amazon Autos,” which offers financing, extended warranty plans and trade-in options. The U.S. cities include New York, Boston, Chicago, Los Angeles, Miami, Seattle, San Francisco and other major metropolitan areas.
- “We’re partnering with dealers and brands to redesign car shopping—making it more transparent, convenient, and customer-friendly," Fan Jin, global head of Amazon Autos, said in a statement.
Dive Insight:
Amazon says it will add more U.S. Hyundai dealerships to the Amazon Autos platform next year, including brands from additional OEMs, as it adds new cities and functionality to its online car buying platform.
“We're excited to have Hyundai as our exclusive launch partner and look forward to welcoming more brands and expanding our selection to customers as the program grows,” Jin said in the release.
Amazon Autos touts the program’s transparent pricing, “eliminating the need for negotiation.” Customers can complete the checkout process entirely online, including selecting trim, color options and scheduling a pickup time at a Hyundai dealer.
Vehicle trade-in values are provided by an independent third-party and customers can apply the amount towards the purchase price of their new car. Customers complete the trade-in process by dropping off their old vehicle at the dealer when picking up their new Hyundai model.
Since customers pick up their new vehicles from local Hyundai dealerships, there are no conflicts involving state dealer franchise laws. These regulations have limited Tesla’s ability to sell its electric vehicles in some states, including in Texas, where the company is now headquartered.
The online car shopping platform also provides a valuable digital sales channel to dealerships in addition to their own websites. Amazon Autos can potentially connect dealers with millions of Amazon customers, as well as streamline the initial vehicle browsing and purchasing steps.
"Listing our inventory on Amazon is a game-changer for how we connect with car buyers," said Steven Suh, general sales manager of South Bay Hyundai in Torrance, California, in the release.
Amazon also encourages customers and dealers to provide feedback, which it will use to make improvements to the car buying experience for both customers and dealers.
Hyundai was one of the first automakers to partner with Amazon when it launched its digital showroom in 2018, which allows customers to configure a vehicle online and calculate the price, then visit a local Hyundai dealer to complete the sale.
Hyundai also announced in November 2023 that it will integrate Amazon’s Alexa digital assistant in its next-generation vehicles in 2025.
