It seems as if consumers can buy just about anything from Amazon. Now, you can add cars to that list.
Can Amazon Autos become a go-to destination for car buyers, providing Amazon with a competitive edge in an area where Walmart has yet to establish a strong presence?
While Walmart does sell and even buy cars through its Carsaver partnership, the company still relies on third parties to handle the bulk of the transaction process. This leaves an opportunity for Amazon to take a more direct approach, leveraging its vast ecosystem and tech-driven conveniences to elevate the car-buying experience.
In an interview with PYMNTS, Michael Zakkour, Founder and Chief Strategist at 5 New Digital, explained that Amazon is trying to live up to its reputation as “The Everything Store” by creating Amazon Autos.
“Amazon is banking on consumers’ familiarity and trust in the Amazon platform and seeing all of its features, like reviews and star ratings, applied to the car-buying process,” Zakkour noted. “It was strategically wise for Amazon to start with an exclusive partnership with Hyundai. This partnership gives Amazon a chance to learn about the auto industry, collect reams of data and better formulate how to disrupt the category and make online buying a significant purchase channel for cars.”
Unlike Walmart’s Carsaver platform, which primarily serves as a middleman for car sales and does not provide the same end-to-end experience, Amazon’s direct entry into the market gives it an opportunity to redefine the online car-buying journey. Walmart’s approach involves facilitating sales through a third party, but Amazon’s ecosystem will integrate car-buying into its core platform, offering everything from purchasing and financing to delivery with the added benefits of Prime perks and Alexa integration.
While the number of “100% pure, sight-unseen online car purchases is growing, they still pale in comparison to dealership sales,” he added. “CarMax, Carvana and Vroom have made solid progress in the used car and B2B car sales spaces, while still not finding a mass audience for new car sales. I expect Amazon to deploy their usual playbook when entering a new category. That said, Amazon still has a lot of challenge to overcome, much as they found out with their purchase of Whole Foods and the rollout of Amazon Fresh stores in grocery.”
Amazon’s entry into the used car market leverages its financial strength, advanced technology, and ecosystem synergies to gain a competitive edge over weaker rivals like Carvana and Vroom, Zakkour noted. By undercutting prices, simplifying the purchasing and delivery process and bundling cars with Prime perks and Alexa integrations, Amazon can offer unmatched convenience and value. Additionally, its strong brand reputation for customer service and reliability positions it to attract hesitant online car buyers and dominate the market.
But, Zakkour added, “many buyers still prefer test drives and in-person experiences before purchasing a car. Amazon must address this with test-drive partnerships or similar solutions.”
“Trusting an entirely online process for such a high-ticket purchase may take time. Cars are unlike books or electronics. They require specialized logistics for delivery, inspection, and registration. Managing returns or exchanges adds to this complexity.”
With the brand power Amazon commands, it can challenge traditional auto sales and provide a more streamlined experience than what Walmart’s Carsaver platform offers. Combining consumer trust with technological innovation could give Amazon an edge in attracting a broader audience to its car-buying service, Zakkour added, setting it apart from Walmart’s current indirect approach.
But Amazon will face competition on two fronts, Zakkour explained, adding, “Carvana and Vroom, though weaker financially, have existing infrastructure for online car sales. Automakers and dealerships invest heavily in improving their online capabilities. Amazon has disrupted and remade entire consumer product and service categories before, and I give them a fighter’s chance to do it again in online auto sales.”
Meanwhile, consumer confidence could be a big advantage for Amazon, according to Arias Websterberry, CEO of WebsterBerry Marketing.
“Amazon already has millions of users who associate the brand with convenience and reliability,” he explained to PYMNTS. “With the Amazon app, it’s incredibly easy to find competitive pricing, which gives them a strong edge in building consumer confidence as they expand into this new industry and offering.”
Amazon’s logistics and delivery expertise, Websterberry added, is one of its biggest strengths. “They’ve completely revolutionized the global logistics system and are unmatched in getting products directly to consumers,” he said. “I’m really curious to see how they’ll streamline the delivery process for something as large and complex as a car. It will be fascinating to see how Amazon integrates this offering with their other services, like Prime and Alexa. Imagine scheduling a test drive through the Amazon app or even asking Alexa to remind you about car maintenance — it’s those kinds of integrations that could set them apart.”
Amazon’s scale and “deep pockets give it clear advantages as it moves into online auto sales,” according to Nelson Pereira, Managing Partner, Transportation & Mobility at digital consultancy Publicis Sapient. “But cars aren’t like gadgets. A lot of buyers still want to kick the tires — literally — take a test drive, and yes, even negotiate in person. Add in trade-ins, after-sales service and warranty support, and it’s clear Amazon will have some gaps to fill.”
This move will push the industry forward by better connecting with digital-first consumers, Pereira added, “but it won’t replace what exists today. For OEMs, the real opportunity is finding the right balance — offering the seamlessness, digital-first experience consumers expect while preserving the trust and touchpoints that make the car-buying journey unique. That’s where the future is headed.”
Here’s a look at other notable developments from Amazon and Walmart in the past week:
Amazon Highlights
We get a lot of press releases here at PYMNTS. We consider all of them, and some are more newsworthy than others. But this one really got our attention. This past week, Diebold Nixdorf made headlines with its announcement of successfully installing two new automated teller machines (ATMs) at the U.S. National Science Foundation’s McMurdo Station in Antarctica. This achievement marks a significant milestone in banking accessibility, to be sure. We would like to meet the crew that installed them. We’d also like to know why they needed two. Was there a line at the first one? More to come on that.
According to Diebold, McMurdo Station is Antarctica’s largest research and logistics hub, supporting a fluctuating population that ranges from fewer than 200 residents during the winter months to up to 1,100 individuals during the summer (October through February). The presence of these ATMs is crucial, it says, as the next closest banking facilities are thousands of miles away, making them the only ATMs on the entire continent. How’s that for a value proposition?
The DN Series ATMs are designed for always-on availability. And why do they need two? One ATM is actively in use, while the second serves as a backup for spare parts, ensuring uninterrupted service in this isolated area. These machines are connected to the DN AllConnect Data Engine, which leverages Internet of Things (IoT) connectivity, machine learning, and artificial intelligence (AI) to monitor their performance. A dedicated team continuously aggregates and analyzes technical data to identify potential issues, enabling remote diagnostics and repairs. The ATM can be maintained by trained staff at NSF McMurdo Station, or the Diebold Nixdorf service team can remotely guide them through the repair process.
Anyway, it got us thinking. Are there other surprising ATMs in extreme locations? Well, of course, there are. Here’s a sampling of what we found.
At an altitude of about 5,364 meters (17,600 feet), the Mount Everest Base Camp in Nepal is another unexpected place to find an ATM. Although it’s not a permanent fixture and is often set up seasonally, it caters to climbers and trekkers who need cash for local transactions. This temporary ATM service underscores the adaptability of banking services in extreme environments.
In some parts of the Amazon rainforest, particularly in Brazil and Peru, ATMs can be found in small villages and towns. These machines are vital for local communities, providing access to cash in areas where digital payment options might be limited. The presence of ATMs here demonstrates how banking services can reach even the most remote communities.
Located in the Tibet Autonomous Region, Nagqu is home to one of the highest ATMs in the world. This region is very remote, with limited infrastructure, making the presence of an ATM a notable example of banking accessibility in extreme environments.
In the Thousand Islands (Kepulauan Seribu) off the coast of Jakarta, Indonesia, there’s a floating ATM. This unique ATM serves the local community and tourists on the islands, demonstrating how banking services can adapt to isolated marine environments.
Longyearbyen, the administrative center of the Svalbard archipelago in Norway, boasts the most northerly ATM. This location is one of the most remote inhabited places on Earth, with limited access to mainland Norway, making the ATM a vital service for residents and visitors.
On a more serious note, the installation of ATMs in places like Antarctica and other remote locations highlights the evolving nature of banking technology. With advancements in IoT, AI and remote diagnostics, it’s becoming increasingly feasible to provide banking services in areas previously considered inaccessible. As we look to the future, it will be interesting to see where else ATMs might appear. Whether it’s on a remote island, at the top of a mountain or even in space, the ability to access cash is becoming more universal than ever. And who knows? Maybe one day, we’ll see an ATM on Mars, serving the first interplanetary travelers.
For now, the presence of ATMs in unexpected places reminds us that banking is not just about transactions; it’s about connecting people and communities across the globe, no matter how remote they might be.
