Amazon’s New Car Shopping Experience

In a groundbreaking move, Amazon has officially entered the car shopping market with its new platform, Amazon Auto, launching in partnership with Hyundai. For the first time, customers in 48 US cities can now browse, finance, and even arrange vehicle delivery all within Amazon’s familiar ecosystem. While the platform exclusively features Hyundai vehicles for now, this marks a bold shift in how consumers purchase one of their largest investments: a car.

Car Shopping, the Amazon Way

Amazon has long been the go-to for everything from groceries to electronics. Now, it’s bringing the same simplicity and convenience to car buying. With Amazon Auto, customers can browse Hyundai’s inventory, compare options, select financing, and finalize the purchase—all online. It’s a streamlined experience designed to eliminate the often dreaded back-and-forth of traditional car dealerships.

However, the core role of dealerships remains intact. Amazon Auto acts as the facilitator, connecting buyers with Hyundai dealers for fulfillment. This strategy sidesteps legal complexities that restrict direct-to-consumer (DTC) car sales in most US states. Dealers remain integral to the process, handling delivery, financing options, and even trade-ins.

Barriers to Online Car Buying & Amazon’s Approach

Amazon understands that many buyers still want a test drive or prefer to physically experience the vehicle before committing. Here’s how they’re tackling those challenges:

1. At-Home Test Drives: In select markets, Hyundai dealerships offer to bring the vehicle to your home for a test drive.
2. Virtual Showrooms: Through Amazon’s “Showroom Live,” shoppers can explore interior and exterior details via virtual or augmented reality previews.
3. Flexible Return Policies: Some dealerships provide extended return windows, allowing buyers to return or swap the vehicle if it doesn’t meet their expectations.

By focusing on convenience and tactile experience, Amazon Auto aims to bridge the gap between digital discovery and real-world validation. 

Why Amazon Auto is a Big Deal

For consumers, car shopping has traditionally ranked among the most frustrating experiences. Endless negotiations, financing confusion, and dealership pressure often leave buyers feeling drained.

Amazon Auto aims to solve this by offering a seamless, low-pressure alternative.

With a familiar interface and the ability to browse at their own pace, customers gain control over the process. This approach also benefits dealers, giving them access to Amazon’s massive user base of over 310 million active customers.

Exclusive Perks for Early Buyers

To sweeten the deal, Amazon is offering a limited-time incentive: a $2,300 Amazon gift card for anyone purchasing a Hyundai through the platform before January 10, 2025. The gift card can be applied toward the vehicle’s purchase, giving early adopters a significant bonus.

Trade-Ins Made Easy

Another standout feature of Amazon Auto is its trade-in program. Customers answer a series of questions about their current vehicle’s condition, and an independent valuation service determines its trade-in value. This service, combined with Amazon’s interface, simplifies what is often a cumbersome part of the car buying process.

New Opportunities for Brands and Advertisers

Amazon Auto isn’t just a game-changer for consumers and dealers—it’s a pivotal moment for brands. Non-endemic advertisers, like insurance companies, can use Amazon's Marketing Cloud (AMC) to identify recent car buyers, while dealerships and lenders can target shoppers browsing Amazon Auto with tailored offers and services. Amazon’s DSP can also deliver highly targeted ads based on shopper behavior, helping brands connect with in-market audiences at the perfect moment in their buying journey.

The Bigger Picture

Amazon’s partnership with Hyundai reflects a larger trend toward digital car shopping. Tesla has been a pioneer of the direct-to-consumer model, bypassing traditional dealerships entirely. However, legal barriers in most states have limited other automakers from doing the same. By integrating dealers into the process, Amazon Auto avoids these challenges while offering a futuristic, online-first car shopping experience.

It’s no secret that traditional dealerships are under increasing pressure to modernize. Amazon’s move could accelerate the shift toward digital-first car sales, compelling dealerships to adopt similar online strategies to stay competitive. For Hyundai, being the exclusive launch partner grants it significant visibility and access to Amazon’s unmatched audience reach.

What’s Next?

While Hyundai is the sole brand on Amazon Auto today, it’s clear that Amazon has bigger plans. The company’s vast logistics network, combined with its dominance in e-commerce, positions it to redefine how cars are bought and sold. As the platform expands to include other automakers and potentially offers additional services like financing tools, car shopping could become as routine as buying a new phone charger.

For now, Amazon Auto is live in 48 cities, offering a game-changing way to buy a Hyundai. It’s a bold step into a market traditionally slow to embrace digital innovation—and it may just revolutionize how Americans shop for cars.

By specializing in leveraging platforms like Amazon, Channel Bakers empowers brands to stand out in crowded marketplaces through data-driven strategies, ad placements, and optimized digital storefronts. As Amazon Auto evolves, advertising will play a critical role in showcasing specific car models to shoppers. A strong ad strategy will be essential to stand out in a competitive marketplace. Amazon’s DSP offers a powerful tool to drive traffic based on shopper behavior using Amazon’s 1P (First-Party) Audiences. This enables brands to effectively target and guide potential buyers to Amazon for their next car purchase. By bridging the gap between brands and innovative platforms, Channel Bakers positions brands to lead, not follow, in this rapidly changing retail environment.