Amazon expands auto market presence with Amazon Autos

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.