Amazon Sells New Cars Online In The US: Will It Work?

Nov 22, 2016 08:59 AM EST | Rowland Eturma

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Amazon, the largest Internet-based retailer in the world, just made a landmark deal with Fiat Chrysler to sell cars online in the US. While not directly involved with the purchase transaction of automobiles, Amazon's aim is to pitch the cars online for potential buyers to look into its Amazon Vehicles site; in that way, buyers can also check out the specifics. But will this work?

First, let's take a look at the specifics. As anyone who has experienced online shopping knows, buying anything with a big price tag online can be quite risky. In Amazon's case, online car buyers will go through the Vehicles site; to explore car models being offered and to be presented with dealership, financing, and insurance options before being passed on to the car dealer. If the sale goes through, Amazon will pocket a fee, according to .

Buying cars online from Amazon could actually be a boon for the car buyer. For one, Chrysler can make its offers more appealing by improving some of its existing promotional pricing through discounts. Chrysler also knows it can actually save upfront cost by letting Amazon handle the promotional venture of its models. There's no need to pay a sales representative to pitch the vehicles and no commissions will be paid. This would benefit car dealers as well, since Amazon online car buyers will be ed after purchase and directed to an authorized dealer to sign the paperwork and pick up the vehicle, as reported in .

Overall, it's a win-win strategy for Amazon and online car buyers in the US. For first-time buyers, buying a car can be quite intimidating and having a sales rep assist doesn't help ease their nervousness. Amazon will save them from that struggle by presenting all the necessary vehicle and sales information. By doing so, online car buyers will have a solid idea on what they'll be paying for when they finally go to the car dealer.

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