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BizReport : Ecommerce : November 20, 2006


Amazon.com – The Next Automobile Showroom?

From November 20, Ford Motor Company will sell their luxury Lincoln models from pages on Amazon.com.

by Helen Leggatt

From today, Amazon.com customers can initiate the purchase of a Lincoln with a single click.

Each model will have its own webpage and prospective purchasers can customize and price different options. Live online help is also available, bridging the gap between dealership and customer. The sale will be finalized offline at the users’ local Lincoln dealership, located by their zip code.

Scott Kelly, digital marketing manager for the Lincoln and Mercury brands, said the online purchasing system should appeal to Lincoln's target demographic, which he described as busy and used to shopping online. And he said the program could be expanded to other Ford products if it proves successful

But not everyone thinks the move, by Ford, is a good one.

"This is patently absurd. The logic eludes me," Oakland University marketing professor John Henke told The Detroit News. "This isn't something you can buy on the Web. You're going to want to test drive, to sit in it. The personal interface on a high-priced product is extremely important. You need the reassurance that the salesperson can give you."

Henke sees little benefit to selling on Amazon. Ultimately, the customer needs to go to the dealership to pick up the car, or to trade in.

"They are not sticking with the basics. That's part of why they're failing in the marketplace. They're starting to get some wonderful products out in the marketplace, but people don't know about them," he said. "They're grasping at straws. Their marketing people do not have a coherent strategy for bringing their products to market."

Tags: Amazon, Ford

Comments (1)

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Comments

The problem with the ones you quote is that they've been hidden away too long in their Ivory Towers and don't get the changes that are affecting the market place. I think this is a good thing to try. How in the world could it hurt the company? And research shows that the vast majority of people go online to get information before they buy anyhow. For those that decide, it just takes one of the friction points out of the way.

Posted by: Gary Bourgeault (thealphamarketer.com) on November 21, 2006 06:12

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