"Amazon Selling Cars "

[umesh 336]

Amazon could be set to pilot online car sales in the UK after its UK sector boss admitted car sales executives were already being recruited in preparation for the scheme.

E-commerce delivery expert ParcelHero issued a warning to UK car retailers after producing a report into the strategy of the burgeoning online retailer which highlighted its future role in the business of selling cars.

ParcelHero’s head of consumer research, David Jinks, said: “From books to consumer electronics, Amazon has completely transformed the market wherever and whatever it has launched.

 

“Now the likes of Evans Halshaw and Bristol Street Motors will be taking a deep breath as it accelerates into the world of car sales.”

German trade magazine Automobilwoche this month revealed that Amazon is planning to move into the European car trade – starting in the UK.

Automobilwoche revealed that industry specialist Christoph Moeller had been put in charge of Amazon's European business with car makers.

 

Moeller told the publication that the company is already recruiting car sales executives.

He said that Amazon plans to run the business out of Luxembourg and is looking at Britain as its probable pilot market.

Jinks said: “Amazon is looking at every branch of retail. There is small wonder that it is now looking at car sales.

“Amazon is already actively making loans to its marketplace traders: it may be able to offer attractive loans on new cars in the future to its Prime Members, for example. Amazon is also likely to offer long-term lease cars.”

Jinks added: “Mr Moeller’s claim that the UK will be its pilot market makes perfect sense. Amazon launches many of its ideas in the UK before the US and internationally.

“For example, Amazon trialled its own delivery arm, Amazon Logistics, in the UK before it launched it elsewhere, in order to perfect its one hour Prime Now service before commencing its own deliveries in America.

“Amazon trialled selling small Fiats in Italy last year, with some success; but even the dinky Fiat 500 can’t be left under your doormat or in your porch.

“Amazon will likely have to work with an established car distributor to deliver your new car; introducing an entirely new supply chain.”

Lisa Bedwell, senior research director at Future Thinking, said: “Amazon’s ambitious move to take on the automotive market and sell vehicles directly in the UK is an exciting game changer which will be making established automotive traders nervous.

 

“While key existing players such as AutoTrader are likely to take steps to offer a more tailored, specialised service to differentiate from Amazon, for automotive brands there is an opportunity to push for these platforms to offer more space where they can build a closer relationship with customers.”

Bedwell added: “Trust is now at a premium in the automotive industry, particularly in the wake of the recent Volkswagen’s emissions scandal, with the brand-customer relationship more important than ever for the sector.

"Brands may benefit from Amazon’s positive reputation, but should also be seeking to create more opportunities to communicate and engage with customers directly through these platforms.”

Link to original article : http://www.am-online.com/news/dealer-news/2017/06/13/amazon-recruiting-car-sales-executives-ahead-of-uk-pilot-scheme?gutid=92488 

 

 

Thoughts ? 

 

[Mojo121 229]

Unsurprising; Amazon wants to be the 1 stop A-Z marketplace of everything you want to buy.

I'd guess their aim would be to move towards a business model where you spec the car online, see a 3D representation of it before its delivered to your door and you pay your £300p/m. The fact car are more like appliances has been discussed on here already. I'd suggest that they would stay away from Prestige brands and stick to run of the mill cars though. Other than that I think they'll do well, they tend to do well at everything and with the budgets they have it'd be hard to see why they wouldn't. I always imagined John Lewis would be a good company to sell cars too. Reputation goes along way. Being in the heavily used side of the market it doesn't bother me.

[trade vet 703]

This is why AT share price was wobbling yesterday.Good luck to Amazon but we have seen Virgin,Tesco and others fail in recent years by doing something similar.

[Rory RSC 596]

Have Amazon failed at any marketplace they have tried to enter?

 

[trade vet 703]

15 minutes ago, Rory RSC said:

Have Amazon failed at any marketplace they have tried to enter?

 

Hi Rory,yes they have,they are just like us !,just search Amazon Biggest Failures 

[LISL 7]

I think it'll be along the lines of the carwow concept. Amazon is an online seller yes and even though they have some of the deepest pockets known to man, they'd rather use their digital prowess and let the manufacturers and dealers sell, and just make a little drink off the top.

Was speaking to a Ford main dealer who buy stuff off, he told me they sell 50 cars a month through carwow and pay them roughly £400 commission, for just getting the lead. Amazon will probably do something of the like and clean up

But then again I could be wrong, it's been known (just ask the wife)

[betginge 73]

9 hours ago, umesh said:

Amazon could be set to pilot online car sales in the UK after its UK sector boss admitted car sales executives were already being recruited in preparation for the scheme.

E-commerce delivery expert ParcelHero issued a warning to UK car retailers after producing a report into the strategy of the burgeoning online retailer which highlighted its future role in the business of selling cars.

ParcelHero’s head of consumer research, David Jinks, said: “From books to consumer electronics, Amazon has completely transformed the market wherever and whatever it has launched.

 

“Now the likes of Evans Halshaw and Bristol Street Motors will be taking a deep breath as it accelerates into the world of car sales.”

German trade magazine Automobilwoche this month revealed that Amazon is planning to move into the European car trade – starting in the UK.

Automobilwoche revealed that industry specialist Christoph Moeller had been put in charge of Amazon's European business with car makers.

 

Moeller told the publication that the company is already recruiting car sales executives.

He said that Amazon plans to run the business out of Luxembourg and is looking at Britain as its probable pilot market.

Jinks said: “Amazon is looking at every branch of retail. There is small wonder that it is now looking at car sales.

“Amazon is already actively making loans to its marketplace traders: it may be able to offer attractive loans on new cars in the future to its Prime Members, for example. Amazon is also likely to offer long-term lease cars.”

Jinks added: “Mr Moeller’s claim that the UK will be its pilot market makes perfect sense. Amazon launches many of its ideas in the UK before the US and internationally.

“For example, Amazon trialled its own delivery arm, Amazon Logistics, in the UK before it launched it elsewhere, in order to perfect its one hour Prime Now service before commencing its own deliveries in America.

“Amazon trialled selling small Fiats in Italy last year, with some success; but even the dinky Fiat 500 can’t be left under your doormat or in your porch.

“Amazon will likely have to work with an established car distributor to deliver your new car; introducing an entirely new supply chain.”

Lisa Bedwell, senior research director at Future Thinking, said: “Amazon’s ambitious move to take on the automotive market and sell vehicles directly in the UK is an exciting game changer which will be making established automotive traders nervous.

 

“While key existing players such as AutoTrader are likely to take steps to offer a more tailored, specialised service to differentiate from Amazon, for automotive brands there is an opportunity to push for these platforms to offer more space where they can build a closer relationship with customers.”

Bedwell added: “Trust is now at a premium in the automotive industry, particularly in the wake of the recent Volkswagen’s emissions scandal, with the brand-customer relationship more important than ever for the sector.

"Brands may benefit from Amazon’s positive reputation, but should also be seeking to create more opportunities to communicate and engage with customers directly through these platforms.”

Link to original article : http://www.am-online.com/news/dealer-news/2017/06/13/amazon-recruiting-car-sales-executives-ahead-of-uk-pilot-scheme?gutid=92488 

 

 

Thoughts ? 

 

 

There is some truth in this, my dad is high up in amazon and mentioned this recently.

I am not sure how their model is going to work but am sure they have the money to make a platform work

[have a word with the wife 299]

6 hours ago, LISL said:

 

But then again I could be wrong, it's been known (just ask the wife)

Edited June 13, 2017 by have a word with the wife

[Nick Maddren 0]

I might be a little bit late to the party however I imagine they will have a business model like Mojo121 has mentioned with some added features. It only mentions new cars in this article however in time I bet they would try the used car market. I think they'd try and mimic the success of companies like Carvana, Shift, Vroom from the US. Selling used cars from an online platform and deliver them with no physical showroom needed.

Carvana alone has an enterprise value of $1.8 billion. I once messaged the CEO of Carvana named Ernie Garcia and asked if he had any plans on expanding internationally. He replied to me and mentioned that they had too much work in the US to complete before they would consider expanding intentionally.

If the Amazon exects have caught on to the success of companies in the US that are using this new type of business model it wouldn't surprise me if they'd like to try dabbling in it themselves.

I do wonder how their business model would differ. For example I'd be massively surprised if Amazon ever started prepping cars to sell, I just can't see that. The dealers would probably stock all of the vehicles and prep them to the standards that Amazon set.

All of that starts to sound a little bit hairy though, if they do pilot in the UK it will be very interesting to see their business model. Will be even more interesting to see how they work with the UK distance selling laws.

[grant8064 219]

Amazon are amazing IMO. I'm a Prime member because stuff gets delivered on time and I use my Prime membership so I can subscribe to an online Twitch channel. They have fingers so deep in so many niche pies already it makes you wonder why they haven't tried car sales already.

They are the experts at logistics.

One thing though...we all know that life isn't all that rosy in the used world.

It'll be interesting to see what happens. They have a great brand, reputation and consumer trust so I can see them shifting units easily. I'm more interested in what happens 3 months down the line when the DMF needs replacing or the locking wheel nuts are missing on delivery. Only so much you can do from behind a screen without people losing faith. 

Not in any way at all concerned personally. Plenty have tried, plenty have failed. If it was easy someone else would have succeeded already. Nice idea in an office think tank. Whatever the plan is I give it two years of losses before the plug gets pulled quietly.

[GreenGiant 287]

But during those 2 years, they will have put a few hundred small dealers out of business, destroyed the residuals on hundreds of models, made buying quality nearly-new stock almost impossible, lowered the gross margins to slightly more than bugger all, dumped all of their customer problems on the main dealers still in business (that they've spent 2 years screwing over) and will leave a lot of people very, very angry and bitter when they pack up and move on.

Happy days.

[It's me 615]

46 minutes ago, GreenGiant said:

But during those 2 years, they will have put a few hundred small dealers out of business, destroyed the residuals on hundreds of models, made buying quality nearly-new stock almost impossible, lowered the gross margins to slightly more than bugger all, dumped all of their customer problems on the main dealers still in business (that they've spent 2 years screwing over) and will leave a lot of people very, very angry and bitter when they pack up and move on.

Happy days.

and not a balloon in sight

[BHM 994]

55 minutes ago, GreenGiant said:

dumped all of their customer problems on the main dealers still in business (that they've spent 2 years screwing over) 

If the main dealers don't deal with them they won't get screwed by them. However greed rather than taking a long term view will always prevail in this industry.

[metcars 397]

Will Amazon be self-warrantying?

[It's me 615]

5 hours ago, metcars said:

Will Amazon be self-warrantying?

of course

but firstly you have to give  Alexa a chance to tell the car to start

or john cleese comes round

[have a word with the wife 299]

The internet may be revolutionary but it hasn’t revolutionised the way we sell cars, the primary reason for internet purchase is the expectation of a discount, the next is ease of purchase, when jo bloggs wants to p/ex his micra with bubbles on the back arch and a worn out ignition lock  it gets complicated, and if amazons thinking of offering wbac rates its a non starter .

rip 

 

virgin cars

tesco cars 

etc