For years dealerships and OEMs have discussed the “Amazon Experience,” and brainstormed ways to make the automotive buying process have the click to purchase ease for the consumer. In a groundbreaking move, Amazon and Hyundai have announced a strategic partnership that is set to revolutionize the automotive industry and solve for this issue. This collaboration, highlighted on Amazon's news platform, includes several innovative elements that could significantly impact automotive dealerships and sales.
Summary
Online Car Sales: A New Era
Starting in 2024, Hyundai will become the first auto brand to sell vehicles on Amazon's U.S. store. This marks a significant shift in how consumers purchase cars, moving from traditional dealership visits to an online shopping experience. Customers will have the option to buy cars online and choose between dealership pickup or home delivery. This move, facilitated through a trusted partner like Amazon, will help dealerships become even more competitive with companies like Carvana, who offer a similar process. The key differentiator is that the consumer will have the comfort of knowing the dealership is there to help with any issues that may arise. And the vehicles will be both new and used, which will offer more choices to the consumer.
Impact on Dealerships
This shift towards online sales presents both challenges and opportunities for automotive dealerships. While it may reduce the need for in-person sales, it also opens up new avenues for customer engagement and service. Dealerships will play a crucial role in fulfilling online orders, either through delivering vehicles or preparing them for pickup.
With Hyundai being the sole partner in this endeavor, they will have a leg up on their competition. Customers looking for the ease of Amazon may look at Hyundais, even if they were not previously interested in that specific manufacturer.
Digital Transformation with AWS
Hyundai's decision to choose Amazon Web Services (AWS) as its preferred cloud provider is a major step in its digital transformation. This move will see Hyundai migrating on-premises applications to AWS, enhancing its operational efficiency and customer service capabilities.
Alexa Integration: Enhancing Customer Experience
Starting in 2025, Hyundai's next-generation vehicles will feature built-in Alexa. This integration promises to offer a more interactive and connected driving experience, further cementing Amazon's role in the automotive sector.
And as Alexa accounts follow the user, it could bring many new options to the customer to make their life easier (ie - reminders, shopping, lists, Alexa homes, etc).
Conclusion
The Amazon-Hyundai partnership is a clear indication of the evolving landscape of car sales and dealership operations. As the industry adapts to this digital shift, it will be interesting to see how other automakers respond and how this will shape the future of automotive retail.
For more details on this partnership, visit Amazon's news site.