Amazon.com Inc. (NASDAQ:AMZN) expanded its automotive platform to include used and certified pre-owned vehicles, marking a significant shift in the e-commerce giant’s automotive strategy as it competes with established players like Carvana Co. (NASDAQ:CVNA).
Expansion Targets Growing Used Car Market
Amazon Autos launched used vehicle listings in Los Angeles on Monday, with plans to expand to additional cities nationwide in the coming months. The platform now operates in more than 130 U.S. cities, up from 68 markets in March.
“This expansion is driven by strong interest from our dealer partners,” said Fan Jin, global leader of Amazon Autos. “By including certified pre-owned and used vehicles, we’re meeting dealer demand for broader online reach while offering customers a wider selection of high-quality vehicles.”
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Dealer Partnership Model Maintains Traditional Structure
The platform connects participating dealers with Amazon’s customer base while preserving the traditional dealership model. Starting with Hyundai dealers, Amazon Autos claims to offer transparent pricing with no hidden fees and comprehensive vehicle information, including Vehicle History Reports.
Key Program Features Target Consumer Protection
Amazon Autos includes customer protection features such as a 3-day/300-mile return policy and a minimum 30-day/1,000-mile Limited Warranty on all vehicles. All vehicles must be available within a 75-mile sales radius of customers.
Market Impact on Established Auto Retailers
Amazon’s entry comes as the used car market faces declining prices, potentially impacting established online retailers. Copart (NASDAQ:CPRT) leads the used car retail market with a $45 billion market cap, followed by Carvana at $41.01 billion.
In March, Piper Sandler analyst Alexander Potter upgraded Carvana to Overweight, noting Amazon Auto’s “selection is limited to Hyundais” and doesn’t represent direct competition. BofA Securities analyst Justin Post maintained that Amazon’s move would benefit the entire online auto sector.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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