Amazon aims to reshape the car purchasing experience, but dealers express doubts.

The estimated total addressable market for new and used car sales in the U.S. is between $2.5 trillion and $3 trillion, according to the National Automobile Dealers Association.

An e-commerce giant is striving to achieve what insiders claim is impossible: providing a smooth online shopping experience in a highly regulated and intricate industry.

The company has launched a pilot program to sell vehicles to employees through the Amazon platform, similar to previous programs in travel, grocery, and health-care sectors.

Among Amazon's 150 million Prime customers, automobiles are one of the most frequently requested products, according to Jeff Dyke, president of one of the largest publicly traded dealership groups in the country.

According to Chris Sutton, vice president for automotive retail at J.D. Power, around 25% to 30% of car buyers want to do some or all of the car-buying process online. However, when it comes to electric vehicle buyers, this number increases to 40%.

A small percentage of car manufacturers, mainly EV companies such as Tesla and Rivian, sell new vehicles directly to customers through their websites, bypassing dealerships. These companies have also completely online the sales of used cars. However, online purchases represent a minor fraction of total sales.

Franchised dealers, shielded by stringent state vehicle sales regulations, have struggled to replicate the seamless click-and-buy experience that consumers are increasingly accustomed to in other markets.

Dealers are observing Amazon's small program, with some expressing doubt about the company's ability to surmount the obstacles that have hindered other businesses.

Though understandable, Dyke dismissed concerns that the program will endanger franchised dealerships as "preposterous."

He stated that Amazon's level of sophistication, technology, and strength in terms of headcount on this project is unmatched.

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