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Amazon expands auto market presence with Amazon Autos

May 21, 2025 · Authored by A. Michael Mader

In a bold move that could shape the automotive retail landscape, Amazon has entered the car sales market with a model that blends the convenience of e-commerce with the expertise of traditional dealerships. Amazon Autos, the company’s new automotive platform, is designed to streamline the car buying process while preserving the critical role of dealerships in the transaction. 

In this month’s episode of Up to Speed, Mike Mader, principal with Baker Tilly’s dealership advisory service team, discusses how Amazon Autos benefits both dealers and consumers with the director and general manager of Amazon Autos, Fan Jin. 

Amazon Autos

At the heart of Amazon Autos is a commitment to customer-centric innovation. The platform allows consumers to browse, finance and purchase vehicles entirely online, offering a seamless digital experience that mirrors the simplicity of buying everyday items on Amazon. From searching for a specific model to securing financing and scheduling pickup, the entire process can be completed from the comfort of home – often during evening hours when traditional dealerships are closed. 

This initiative is not about replacing dealerships but empowering them. Amazon Autos operates on a marketplace model where dealerships list their inventory, set their own prices and maintain control over the customer relationship. The platform does not take a cut from the vehicle sale itself. Instead, Amazon’s revenue comes from a nominal listing fee and advertising opportunities, making it a cost-effective marketing channel for dealers. 

One of the key differentiators of Amazon Autos is its focus on transparency and trust. Each vehicle listed has a dedicated page, complete with detailed specifications, dealer-installed options and, in the future, used vehicle history. This approach ensures that customers know exactly what they’re buying, reducing the friction often associated with in-person negotiations. 

Dealer benefit

Dealers benefit from this model in several ways. First, it introduces them to a new segment of online savvy customers who may not have otherwise visited a showroom. Second, it simplifies the sales process. By the time a customer arrives at the dealership, the deal is already finalized, allowing staff to focus on delivering a positive experience rather than negotiating terms. This efficiency can lead to higher customer satisfaction and repeat business. 

Amazon Autos also supports financing through manufacturer captives, such as Hyundai Motor Finance, and allows dealers to mark up loans as they would in-store. Protection products like GAP insurance and vehicle service contracts are available online, while Amazon actively testing ways to improve their presentation and increase attach rates. The goal is to match or exceed the profitability dealers see from in-store sales of these products. 

While the platform currently supports only new Hyundai vehicles, expansion is on the horizon. Amazon is in discussions with other manufacturers and franchise dealers, with plans to broaden its offerings to include additional brands and used vehicles. The used car market, which accounts for two-thirds of all vehicle transactions, presents a significant opportunity. However, Amazon is approaching this segment cautiously to ensure it maintains the trust and quality of standards customers expect. 

Dealers have responded positively to the platform, particularly those who have already completed sales through it. They report that transactions are straightforward, customer satisfaction is high and the process attracts a new demographic of buyers. However, onboarding has been cited as a challenge. Integrating inventory systems and training staff across departments can be time-consuming. Amazon is working to streamline this process, aiming for a more intuitive and efficient setup. 

Importantly, Amazon Autos is designed to respect the boundaries of the dealership’s role. Dealers retain full control over which vehicles are listed and at what price. They are also responsible for the final delivery and any necessary paperwork, including wet signatures where required by law. While the platform does not currently support the sale of accessories or additional services as part of the online transaction, these can still be offered at the dealership as separate purchases. 

Looking ahead

Looking ahead, Amazon Autos is poised to become a powerful tool for forward-thinking dealerships. It offers a way to tap into the growing trend of online shopping while preserving the personalized service and long-term relationships that define successful automotive retail. For dealers who prioritize customer experience and are willing to embrace digital transformation, Amazon Autos represents a compelling opportunity. 

In an era where convenience and transparency are paramount, Amazon’s entry into the automotive space signals a shift in how cars are bought and sold. By partnering with dealerships rather than bypassing them, Amazon is not just selling cars – it’s redefining the future of automotive retail.