At the end of 2023, Hyundai y Amazon signed an agreement so that the technology giant sell his cars on the famous e-commerce portal. It was assured that this new service, which opened the door for Amazon to market new cars, would be available in 2024. This has not been the case and does not indicate that it will become a reality soon.
Both companies They haven’t even completed the pilot phase. This is driving dealers’ minds, and they even doubt that customers will buy cars on the portal.
A very complex purchasing process, which has nothing to do with buying a coffee maker
“They have not yet reached an agreement. It appears to be just another digital retail tool at the moment, not top-tier.” This is what Mike Stanton has pointed outexecutive director of the National Automobile Dealers Association during a panel discussion at the Automotive News Congress in Michigan.
Staton explains that dealers “are frustrated” by the minimal progress so far. In his opinion, Amazon understands how complex it is to sell cars online, but this partnership is still in its infancy in fundamental aspects: “They have not yet created a situation where the dealer can deal with multiple banks or work on transactions.”
Also doubts whether customers are willing to buy cars on Amazonsince a much more complicated process than buying small items or appliances. “I don’t think I’m going to buy a car after buying my toothpaste.”sentence.
And beyond the users, he points out that perhaps the complexity that this service would entail was not appreciated, which must comply with state regulations for the sale of automobiles and includes many actors (financiers, distributors, etc.). The dealers are precisely working on this point, but progress is being minimal.
Other problems also arise, such as Customer data protection and how this will affect dealers. Since Amazon can become direct competition by offering other products or spare parts once they buy a Hyundai on the portal. Although they predict that customers will want to continue going to dealerships to see the cars on site.
You buy from home, but you have to pick up the car at the dealership. This pilot program, announced at the 2023 Los Angeles Show by both companies, was going to be the starting point for Amazon to become an official channel for the brands: the intention is for other manufacturers to later join. At launch it would be exclusive to Amazon US, but later it would be extended to more countries.
For the user, the agreed process for the buying a car on Amazon lost the fundamental advantage to purchase products on this portal: the car will not be sent home but to the dealership that the customer chooses. This protects the points of sale, which will continue to be essential in the purchase of a car, but for the customer there is no advantage compared to purchasing it on a brand’s website.
The vast majority of companies allow you to configure your cars online, but some even allow you to formalize the entire purchasing process on their website and pick it up at the dealership. Brands like Tesla are purely online, their points of sale being mere points of exhibition and delivery of the car. What’s more, there are firms that have included home delivery, such as Renault did with its YOU Rent Online rental service for individuals.
¿Why then another intermediary in a purchase? What is the second largest investment for households? In the end, the logical thing is to opt for the brand’s website, which generates more confidence not only for the purchase but also for solving any incident. To which is added that customers also transfer their data to Amazon and not only to the manufacturer.
Be that as it may, for now, the agreement remains in force and the intention is for the program to continue. And it is that among other aspects, the deal included AWS cloud services (true and main negotiation of Bezos’ company) to store Hyundai data or include Amazon Alexa as a virtual assistant in the brand’s cars.
Source: www.motorpasion.com
