Amazon Autos insights reveal a shift in car shopping, letting customers in 48 U.S. cities buy vehicles directly through Amazon. But the question is, how do dealers stay visible on top of competitors?
Is Amazon Autos the Endgame for Dealerships? With Amazon Autos entering the automotive market, some dealers are embracing the platform, seeing it as a way to reach more customers. But is this move setting them up for long-term success or failure?
Amazon’s strategy is clear: attract manufacturers like Hyundai with promises of growth, gradually dominate the market, and ultimately eliminate the middleman—dealerships. This isn’t speculation; it’s a playbook Amazon has perfected in other industries.
Dealers now stand at a crossroads. They can leverage Amazon’s reach to drive short-term sales, but at what cost? The solution lies in understanding Amazon’s tactics, adapting quickly, and finding ways to retain control over their customer relationships before it’s too late.
Amazon Autos Insights: Revolutionizing Car Shopping
Amazon has officially entered the automotive market, beginning with Hyundai as its exclusive launch partner.
CarGurus 7th U.S. Consumer Insights Report80% of buyers prefer handling more steps online when purchasing cars.
Key Features for Customers
- Comprehensive Vehicle Search:
Shoppers can browse local dealer inventories by make, model, trim, color, and features.
- Transparent Pricing
Customers receive upfront pricing details for a clear understanding of costs.
- Trade-In Valuations
Instant trade-in offers for existing vehicles.
- Seamless Financing
Options to secure financing or pay in full online.
- Digital Paperwork
E-sign contracts to finalize the purchase from home.
- Dealer Pick-Up Scheduling
Convenient scheduling for picking up the vehicle at local dealerships.
Amazon Autos Insights from the Parts Market
Traditional auto dealerships have historically relied on their in-house parts centers for sales. However, this model is facing increasing competition from online retailers, particularly Amazon.
Amazon's Advantage
- Massive Market Share
Amazon is a major player in the online auto parts market, generating billions of dollars annually and steadily increasing its market share.
Aftermarket MattersMillennials’ dedication to Amazon has significant implications for its future success in selling auto parts and repairs
- Accurate Vehicle Data
Customers must provide detailed vehicle information (year, make, model, trim) to ensure correct part fitment. This creates a vast database of accurate vehicle ownership data.
- Consumer Behavior Insights
Amazon can track consumer behavior, including parts purchases, abandoned carts, and browsing history. This data provides valuable insights into consumer preferences and intent.
Leveraging Amazon's Power
Dealerships and car parts sellers can capitalize on Amazon’s growing influence by:
- Establishing an Amazon Store
Create a dedicated Amazon storefront to sell parts directly to consumers. This can expand your reach and increase sales.
Learn how to create an Amazon brand store that can generate more sales by watching this video:
- Optimizing Listings
Use relevant keywords, high-quality images, and detailed product descriptions to improve search visibility.
- Fulfillment by Amazon (FBA)
Consider using FBA to streamline order fulfillment and shipping.
- Amazon Advertising
Utilize Amazon’s advertising platform to target specific customer segments and drive traffic to your listings.
Actionable Amazon Autos Insights for Auto Brands and Dealerships
Amazon’s partnership with Hyundai dealerships marks a significant shift in the automotive industry, with the e-commerce giant now directly selling new cars. While this trial is limited to 48 U.S. cities and only Hyundai vehicles, the challenge is how to maximize the benefits of selling on the platform by standing out among competitors.
Amazon Advertising Stats (2024 Update), AdBadgerWhile there are over 9.7 million Amazon Sellers worldwide, in the USA, only 200,000 sellers are doing more than $100,000 in sales.
The solution is strategic Amazon advertising. Here’s how automotive brands, dealerships, and companies selling auto-related products can leverage this development to optimize their ad strategy and drive sales:
1. Leverage In-Market Audiences
Amazon DSP’s (Demand-Side Platform) audience tools can target shoppers actively in the market for a new vehicle. By filtering based on specific car brands, you can reach potential customers even before they finalize their purchase.
This is especially valuable for brands selling related products, such as car chargers, insurance, and accessories. By targeting car buyers, you increase the likelihood of cross-selling additional products.
2. Run Highly Targeted Sponsored Display and DSP Ads
Amazon provides insight into the products customers are actively searching for. If someone recently searched for car parts, they may also be interested in vehicle-related services, such as insurance or maintenance. By running tailored Sponsored Display and DSP ads based on this behavior, you can effectively promote complementary products and services.
3. Utilize Bid Boosting
For companies directly involved in the car industry (e.g., motor oil manufacturers), leveraging Amazon Marketing Cloud (AMC) and bid boosting can help increase the visibility of ads to shoppers who recently purchased a vehicle.
These shoppers are more likely to need specific products, making them valuable targets. Automatically boosting bids for these users can optimize ad spend and improve conversion rates.
4. Location-Based Targeting for Regional Effectiveness
Car sales are typically regional, so using regional targeting in your DSP campaigns is essential.
You can fine-tune your targeting based on state, city, media market, and even zip code. This ensures that your ads reach customers in the right geographic area, preventing wasted ad spend on individuals who are not in your primary market.
5. Measure the Impact of Ads with Vehicle Purchase Insights
With the advent of Amazon Autos, automotive brands can more directly track the impact of their ads. Experian Vehicle Purchase Insights through AMC helps brands tie ad impressions to actual car purchases, even if the transaction occurs offline. This data can be invaluable for measuring ROI and understanding the customer journey, especially for high-ticket items like cars, where the conversion window may be longer.
6. Target Automotive Audiences
Non-endemic brands can also take advantage of Amazon’s automotive audience data.
For example, a motor oil company can create custom audiences based on users who recently purchased a car, or an auto insurance company might target those looking for coverage shortly after car acquisition. By aligning ads with customer behaviors, businesses can capture timely, relevant sales opportunities.
Amazon Autos Insights for All Brands on Amazon
Amazon’s automotive push isn’t just relevant to car dealerships—it has lessons for all brands, especially those selling off-Amazon.
As Amazon continues to reshape the automotive market, dealerships and sellers must navigate new opportunities and challenges. The shift toward more direct sales and advanced audience targeting could present difficulties, such as the need to adapt to complex advertising platforms and fierce competition.
To stay ahead, partnering with professionals, like PPC specialists and Amazon agency, can help optimize campaigns, ensure efficient use of ad spend, and leverage Amazon’s data-driven insights for better decision-making. By working with experts, dealerships and sellers can navigate the evolving landscape and maximize their success on Amazon.
