In a groundbreaking move, e-commerce giant Amazon is set to expand its product lineup yet again, this time venturing into the automobile industry. Soon, you’ll have the option to purchase Hyundai cars and SUVs directly through the Amazon platform, thanks to a partnership with the South Korean automaker.

However, before you start envisioning a Hyundai Santa Fe or Sonata parked in your driveway after a swift online transaction, there are some key details to keep in mind. This isn’t your typical Amazon Prime delivery. You won’t be receiving your new vehicle in a gray van at your doorstep. Instead, the process involves selecting your desired Hyundai from a local dealership’s inventory, just like any conventional car purchase.

The reason behind this is the complex web of laws in most U.S. states that protect auto dealerships from automakers aiming to sell their vehicles directly to consumers. Companies like Tesla and Rivian have grappled with this issue, as they prefer direct customer interaction. Jessica Caldwell, an industry analyst with Edmunds.com, aptly points out, “It’s not like you’re going to buy it, and then the car will be delivered to your house the next day, like you’re a Prime member or something like that. If that is the expectation, then that needs to be managed because I would imagine that would lead to quite a bit of disappointment on the consumer end.”

Amazon’s objective, however, is to make the car-buying experience as seamless and “online” as possible, according to a company spokesperson.

Edmunds.com, in a way, operates in a similar space, connecting car shoppers with dealers and earning revenue through this linkage—something Amazon is set to replicate with Hyundai dealerships. But buying a car is a vastly different and more intricate process compared to purchasing books or watches online, as Caldwell rightly emphasizes. Amazon’s website will provide financial information and the ability to calculate monthly payments, adding a layer of complexity to the interface’s design, which will be crucial for its success.

During a presentation at the Los Angeles Auto Show, Jose Muñoz, Chief Operating Officer of Hyundai, and Mike Sullivan, owner of the Hyundai Santa Monica dealership, highlighted that dealerships would take on the responsibility of explaining vehicle technologies to customers and providing post-sale servicing.

Amazon customers will gain access to dealership inventories via the Amazon website, where they can view vehicle pricing and initiate a purchase with the click of a button. However, the catch here is that customers can only choose from vehicles that are already in dealers’ inventories.

The concept of selecting a vehicle online isn’t entirely novel. Many auto dealers have been employing various e-commerce platforms to boost sales for quite some time now. This trend saw a significant uptick during the peak of the Covid-19 pandemic when physical visits to dealerships were restricted. The business model of “lead generation,” where websites earn a commission for connecting shoppers with auto dealerships, has been successfully utilized by many websites.

Mike Sullivan, with 30 years of experience in home deliveries and e-commerce, acknowledged that the real game-changer in this partnership is the sheer size and reach of Amazon, one of the world’s largest e-commerce companies. While Hyundai is the first car company to join forces with Amazon in this endeavor, there is potential for Amazon to collaborate with other automakers in the future.

This partnership announcement is part of a larger package of deals between Hyundai and Amazon, including Amazon’s provision of data storage services for Hyundai and the incorporation of the Alexa voice assistant into future Hyundai models.

It’s worth noting that Hyundai dealerships won’t be compelled to participate in this program but will have the option to opt-in.

Amazon’s foray into the automotive industry with Hyundai is a significant development that aims to revolutionize the car-buying experience, making it more accessible online. While it won’t be as simple as ordering a book, Amazon’s massive presence and expertise in e-commerce are sure to bring a fresh perspective to the car sales market.

In this ever-evolving digital age, Amazon’s move into selling cars is a testament to the company’s relentless pursuit of diversification and expansion into new markets.