Amazon Forays into Auto Business

There appears to be nothing that you can’t get on Amazon. The online retailing giant has now proved this by making a foray into the auto business, not directly but by creating a community called Amazon Vehicles for car lovers where they can compare cars, research them and read reviews about a wide range of models including convertibles, trucks, SUVs and sedans. Amazon is not selling cars but the site does offer details of pricing obtained from manufacturers.

According  to Amazon’s automotive head Adam Goetsch, Amazon’s purpose in creating the hub was to offer support to customers as they engage in one of the most important purchase decisions they make in their lives. He went on to add that they will be able to share experiences, opinions and knowledge with likeminded car owners who belong to the Amazon customer community.

Amazon has also partnered with Hyundai to give potential customers a chance to order test drives using the Amazon website. This is just a pilot program, but if it works, other automotive companies might engage in similar tactics. Customers will have a chance to escape from hardsell they would face at the dealer while manufacturers get access to a wider customer base.

Currently, Amazon has the Amazon Automotive store where customers can buy replacement parts and accessories like car seats. Eventually, though, once the retailer gains access to a broadbased community of car lovers through its automotive hub, the company may take to automotive sales. This might end up jeopardizing the business of car dealers if they do not act pro-active action.