Sep 05, 2016 07:00 AM EDT
Amazon Revolutionizes Car Industry; Found Out How

Amazon.com surprised the car industry with a report dispatched by News Portal a week ago. The new Amazon Vehicles allows buyers to view details on many new and classic cars.

Amazon is the undisputed king of online shopping, however, the new portal doesn't permit vehicle buys - at least not as of the moment. But the new site is an indication that Amazon is considering approaches to inserting itself into the car-dealing process, and that has significant impacts for a great deal of companies in the car business.

At this point, clients can find pictures, videos, details, and customer reviews of many new, used, and classic cars. Clients can likewise leave car-related inquiries for others to answer- and can also leave reviews of cars they've owned. While the size of Amazon's tremendous user base is exceptional, a lot of the content appears to copy what sites like Edmunds' and Kelley Blue Book have already provided. Furthermore, there's no obvious revenue source for Amazon in the site as it is today.

Amazon is probably investigating the idea of inserting itself into the car-purchasing process somehow. The clearest model is that of TrueCar, an online car shopping service that matches buyers with car dealers that have agreed to respect a no-haggle price. Does that sound like an inconvenience for TrueCar? Can Amazon be a potential rival for all of these other online car-dealing companies? It looks a lot like it, I'm afraid.

The conclusion is self-evident: If Amazon were to choose to muscle its way into TrueCar's territory, it would probably be a short battle. While TrueCar has to induce and wheedle dealer into joining its network, Amazon's overwhelming market presence could make it a no-brainer choice for dealers: Join the network, and be ready to contend forcefully on cost - or be left out.

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