Amazon pushing to enter the auto sales business

Consumers may buy just about anything via Amazon.com and soon they may be able to order cars through the retailer’s new automotive community platform dubbed Amazon Vehicle.

For now, consumers can research information on cars, auto parts and accessories on the retailer’s new webpage — Amazon Vehicle — but there is no direct link to purchase yet.

This week Amazon said the new webpage will serve as an “automotive community” for consumers who want to research new and classic cars. Amazon said the purpose for the new website is to support customers during one of the most important purchases in their lives by helping them make informed decisions based on research that the site offers.

The Amazon Vehicle site includes detail pages for thousands of cars and trucks, with specs, pictures and videos and general pricing information.

Morgan Stanley analyst Brian Nowak said the move by Amazon could eventually be the road to the next trillion dollars in revenue. Nowak said Amazon can take part in another $67 billion market by selling parts and accessories through the website, even if the retailer stops short of partnering with dealerships to offer cars online. He estimates 35 million loyal Amazon customers have already “parked in the virtual garage on Amazon.”

While the platform does not allow consumers to purchase cars online, Nowak said this could change, perhaps starting with used cars. He said to sell new cars Amazon will have to partner with dealerships, which was recently piloted with Hyundai at two locations in California where Amazon would bring cars to customers’ locations to test drive.

Nowak said if Amazon is successful there could be implications for eBay as automotive comprises more than 11% of the e-tailer’s gross merchandise value. TrueCar which also provides research on Amazon.com could also see a threat to its online traffic. Last year Sam’s Club partnered with TrueCar to help its members negotiate savings on new car purchases. It’s unclear how this new Amazon service will impact that feature in the future.

He said further auto purchase integration with more partnerships like the Hyundai test combined with Amazon’s 300 million active shoppers could present a direct threat to TrueCar’s core business, which logs about 7 million monthly visitors to its site.