logoalt Hacker News

gruezyesterday at 8:00 PM1 replyview on HN

>* If Amazon spends the appropriate time researching into each car's history, properly inspecting and repairing any defects and working with customers if there are problems - they will not make a net profit. Not 'maybe', they won't.

Given that used car dealerships have existed for decades, it's possible to do profitably. Why can't amazon?


Replies

Night_Thastusyesterday at 8:52 PM

If you're a used car dealership you can:

* Avoid paying any shipping costs, and require the car be driven to you in person

* Have a shop attached to the dealership for inspection to avoid paying a third party

* Have a person at the ground level look over the car and refuse to accept ones that are obviously junk, minimizing wasted time and money

If Amazon is literally just acting as a front-end/advertisement for Ford and has 0 involvement than most of this doesn't apply.

It's only a concern for places that act as a true online retailer, taking on all the inventory and risk associated with it.