VIN Basics Blog

When Amazon steps into a market, change is inevitable — and the auto retail industry is now bracing for this exact seismic shift. Amazon has already disrupted the aftermarket auto parts industry and has also offered vehicle research tools, including vehicle detail pages and digital showrooms, for a number of years to support today's car buyers. Following consistent consumer requests for a “buy box,” Amazon recently decided to support the purchase of new vehicles on its Amazon Autos platform, according to Matt Nuffort, Director of Amazon Autos. However, Amazon Autos is still in beta with Hyundai as its sole OEM partner.

What exactly does this mean for the traditional dealership car-buying model? Purchases are still being made through the dealer, only much of the process is being completed on Amazon. While some vehicles can be purchased directly from Amazon’s website, other vehicle listings require a visit to the dealer's website. As for test drives and vehicle pickup, this can only be done at the physical dealership. Despite this basic primer on Amazon car buying, many unanswered questions remain. Here are a few of the big ones:

Digital retailing has been a hot topic in the auto industry for quite some time now, especially during the height of the pandemic where many dealers were nudged to move vehicle sales online. I had written a roundup (view here) a little over a year ago about how to improve the car buying experience in a changing economy, which was largely centered around the idea of consumers looking for an end-to-end digital buying experience.

While the world seems to be getting back to normal, or a “new normal,” digital retailing is here to stay. And though the majority of vehicle purchases still involve a trip to the dealership for several steps in the buying process, 86% of shoppers (according to a recent Cox Automotive study) still want the save time spent at the dealership with the ability to complete as many steps online as they desire.