Add Car to Basket. Amazon wants you to check out with a Hyundai.

Socks, TVs and cars.

What’s the most expensive thing you’ve bought on Amazon? A laptop, a TV, socks, a Hyundai Ioniq 5N?

Buckle Up for the Future: Hyundai vehicles are now available on Amazon would you buy one?Customers aren’t bothered if the pack of 500 cable ties that arrives under their hedge is of dubious quality. But a €70,000  EV?

Chances are they’ll need to do a little bit more research before they  ’add to basket’, and they certainly Won’t want it delivered under a bush.

Trust and reliability are major considerations when buying a car, customers want to ensure that they are purchasing from a reputable source, and while Amazon is trusted for smaller purchases, this trust doesn’t always extend to high-consideration purchases like cars.

Reshaping automotive

In a move that’s set to reshape the automotive industry, Hyundai and Amazon have announced a pioneering partnership that will allow shoppers to purchase new Hyundai vehicles directly through the Amazon platform.

The implications are both exciting and complex. While the initial excitement may stem from the ability to simply “add a car to your cart,” the reality is more nuanced.

The partnership will initially launch in a limited pilot program, with 18 Hyundai dealerships across five states participating. This allows Amazon to honour existing franchise laws while providing shoppers with a streamlined digital experience.

Customers will be able to browse Hyundai’s current inventory, select their desired model and features, and even choose financing or leasing options, all within the Amazon ecosystem. However, the final transaction, paperwork, and vehicle delivery will still be handled by the local participating dealership. [dealers will not exchange trade-ins for Amazon vouchers]  Also buyers are unlikely to be able to talk to a person at Amazon about their purchase or transaction, they’re just not set up to work that way.

Pilot programme

This arrangement is designed to balance the convenience of online shopping with the expertise and personal service that dealerships can provide. Hyundai and Amazon have emphasized that the pilot program will focus on gathering feedback and learning from early adopters before potentially expanding the offering to other automakers.

Another potential challenge is the willingness of auto dealers to fully embrace the partnership. While it could bring more foot traffic to their showrooms, dealers may also be hesitant to cede some control over the sales process and the opportunity to form direct relationships with buyers.

Then there’s the problem of the standard Amazon selling referral fee of 8% – 15% to consider.

Amazon Brand

The perception of Amazon as a marketplace for everyday items is also crucial. As a horizontal marketplace, people are used to buying books, electronics, and household items on Amazon, but the idea of buying a car on the same platform feels incongruous. This perception affects buyer confidence and willingness to make such a significant purchase online.

Delivery

While Amazon has made significant strides in expanding its product offerings, the purchase of high-value items like cars remains an area where traditional methods seem to prevail. Trust, the need for physical inspection, the complexity of the transaction, after-sales service, emotional factors, regulatory challenges, and market perception could all contribute to an auto buyer’s reluctance to buy.

Time and the results of the pilot will tell whether the Amazon car buying journey actually delivers.