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Automotive Industry

Amazon.Com Enters Auto Sales Arena - Brief Article

Automotive Industries, Oct, 2000 by John McCormick

For all the hype lavished on e-commerce, the business of online car selling has had mixed success to date. Now two dot-coms, well-known bookseller Amazon and new comer Greenlight, have joined forces in a bid to make new car buying over the Internet easier and more widespread.

Established last year, Greenlight.com has a simplified buying process that removes "the pain points" for consumers, says company CEO Joel Manby, previously head of Saab Cars USA. In a two-year deal, Greenlight is paying online giant Amazon.com $15.2 million to promote its buying service on the Amazon site.

The secret to Greenlight's system, claims Manby, is a simple, no-haggle pricing system and a collaboration with a network of top-quality dealers.

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Greenlight negotiates the best prices from a selection of dealers within a customer's zip code area.

"Working with good dealers is the key," says Manby. "Many customers still want to take a test drive and need service from dealers. We found that people's propensity to buy over the Internet tripled when we announced we would integrate with dealers."

According to a study quoted by Manby, online retailing will account for 30 percent of new cars sales by 2004. "Used car sales are a future opportunity as well," he adds.

Automotive Industry

Amazon.Com Enters Auto Sales Arena - Brief Article

Automotive Industries, Oct, 2000 by John McCormick

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