Scottish Daily Mail

Amazon starts selling cars – but how will they fit in the letterbox?

- By Sean Poulter Consumer Affairs Editor

AT this rate, there won’t be many products left that Amazon doesn’t sell after it emerged that the online retailer is planning to sell cars in Britain.

It is understood to have begun recruiting sales staff for a trial that could be the model for similar schemes in other countries.

After dipping its toe in the water by selling Fiat 500s in Italy last year, it now wants to go much further and has signed distributi­on deals with German manufactur­ers.

Amazon’s track record of undercutti­ng rivals means the move could slash prices and shake-up the car market.

However, it has not commented on a report in the German trade magazine Automobilw­oche, which revealed that the company was planning to move into the European car trade. The magazine said industry expert Christoph Moeller had been put in charge of the enterprise, which will be run from Luxembourg to minimise its tax liabilitie­s, and he is looking at Britain as the most likely pilot market.

David Jinks, head of consumer research at the delivery service Parcel-Hero, said: ‘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. Amazon is looking at every branch of retail. There is small wonder that it is now looking at car sales.

‘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.

‘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, of the research consultanc­y 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 make establishe­d automotive traders nervous.’

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