A New Frontier
With Amazon making extraordinary innovations in its Cloud and upcoming AI branches, the firm’s staple e-commerce department announced a move that will certainly transition its marketplace. For the first time in Amazon’s history, the trillion-dollar company disclosed its upcoming allowance for car dealers to advertise automobiles on its marketplace. Beginning next year, Amazon will allow popular South Korean automaker Hyundai to sell cars on its website, a move that will hope to acquire a big-ticket demographic that Amazon may lack.
Although a major transformation for the firm, this isn’t the first time Amazon has entered the auto space. Previously in 2016, the company launched its Amazon Vehicles interface, which served as a digital showroom for customers to view and compare various models and makes from different automakers. However, consumers couldn’t directly purchase any vehicles, which will soon be changed starting in 2024 with its partnership with Hyundai. As of now, it is unclear whether these vehicles will be directly sold through Amazon or advertised by part of Hyundai’s dealership. Several EV manufacturers such as Tesla and Rivian have revolutionized auto sales, cutting dealership middlemen out of the picture, and selling directly to the consumer. Regardless of which sales model Amazon chooses the entrance to the car sale space is a monumental move that has the potential to transform its customer base and its top line.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.