Future of Amazon in the Automotive Industry, 2017–2025

At Least 5 of the Biggest OEMs Expected to Partner in Retail by 2020

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Amazon has established itself as a global powerhouse in the online retail space. In some locations, it sells everything from books and electronics to even food. It has been able to continuously innovate in terms of its logistics, products offerings, and customer interaction experience. Sellers have been using Amazon to sell automotive products, including spare parts and accessories, and it is stepping up its game to take on established players who sell parts online. Amazon has also created a dedicated portal called Amazon Vehicles to educate customers about vehicles and provide relevant parts, accessories, and services. The next step in the evolution is to sell vehicles, but whether it will be new or used—and

Table of Contents

Executive SummaryExecutive Summary—Key FindingsEliminating Redundant and Lengthy Purchase ProcessesAmazon’s Used Car PotentialImpact of Alexa on eRetailingAmazon’s Current and Future OfferingsResearch Scope, Objectives, Methodology, and SegmentationResearch Scope Research Aims and ObjectivesKey Questions This Study Will AnswerResearch Methodology Research Background Amazon’s Unique Position in the MarketFacts and Automotive Potential for AmazonAmazon’s Core Offerings Relevant to the IndustryPricing Model for SellersAmazon as an Industry PlayerAmazon Opportunity Analysis for New Car RetailAmazon’s Opportunity Analysis in New Car Retail—Key TakeawaysAmazon Opportunity Analysis in New Car Retail—Various ScenariosMarket-Specific New Car Sales AnalysisCurrent Retail MethodsRedundant and Lengthy Purchase ProcessAmazon’s Current OfferingsCase Study—SEAT Mii France/Fiat ItalyCase Study—Hyundai North AmericaScenario 1—Dealers using Amazon’s ServicesScenario 1—Cost to Sell on Amazon as a DealerScenario 1—Cost Model Analysis for Slimmed-Down OperationsScenario 2—Direct Amazon New Car SalesScenario 2—Cost to Sell on Amazon as a ManufacturerSignificantly Reduced Cost, Time, and ComplexityChallenges for AmazonBrick-and-Mortar Dealer Competitive StrategiesAmazon Opportunity Analysis for Used Car RetailAmazon’s Opportunity Analysis in Used Car Market—Key TakeawaysAmazon’s Used Car Potential Popular Used Car PlatformsCompetitor Profile—eBayAmazon’s Used Car PotentialSnapshot of Possible Amazon ListingPotential Impact of Amazon on the Used Car IndustryAdditional Value Offerings on AmazonAmazon’s Other Automotive VenturesAmazon’s Other Automotive Ventures—Key TakeawaysImpact of Alexa on eRetailingAlexa Integration in VehiclesEnhanced Aftermarket OpportunitiesLogistics and Autonomous TechnologyAmazon Subsidiaries That Could Impact the Automotive IndustryConclusions and Future OutlookKey Conclusions and So What AnalysisGrowth Opportunity for Amazon and its PartnersAmazon’s Strategy for Retail Partners and ChallengersStrategic Imperatives for Success and GrowthFuture OutlookThe Last Word—3 Big PredictionsLegal DisclaimerAppendixMarket Engineering Methodology

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