Amazon. The name that some believe to be synonymous with the demise of retail as we know it. But is it truly the demise, or is it the reincarnation? Since 2015, Amazon has been experimenting with brick and mortar locations from convenience stores to bookstores. The eCommerce giant has taken an even bigger leap into physical locales with its purchase of Whole Foods on August 28th of this year. Suburban malls and retailers of yesteryear are continuing to shutter their doors, yet Amazon has decidedly taken the opposite approach. There are a variety of reasons for this move (just Google “Amazon retail locations” and follow that rabbit hole to find out how many). One of the main reasons is simply that Amazon can “do retail” better than retail.
It’s true! Just reminisce about their track record for a moment. Amazon has created a new form of shopping. People tend to shop online for things that they already know they need, but Amazon has created a platform that allows you to window shop on a website. If you find yourself in the “new and interesting finds” section of Amazon.com, you will inevitably begin scrolling for hours through some unique products you never knew you needed and now can’t live without. Most department stores have a hard-enough time bringing consumers into their stores with window displays and customer service, yet Amazon does it all virtually. Now, they can translate online shopping preferences into physical locations.
Amazon has taken their eCommerce strengths and translated them to brick and mortar bookstores reminiscent of local Barnes & Noble or Borders (but with even cozier locations). Some believe the bookstores are open to reach the avid readers and give them a place to meet and greet. I think the bookstores have a two-fold opportunity - for Amazon to give customers the reading materials and gadgets they want and for Amazon to gather the customer data that it wants. I recently checked out an Amazon Bookstore in the Century City Mall in LA, and I was pleasantly surprised. Of course, there are opportunities to buy Amazon gadgets including the Fire and Kindle, but the store had a larger variety of books and magazines than I expected. The best part: customer reviews and ratings posted on placards under the books! It was a quintessential Amazon move that helped distinguish this bookstore from any other.
Amazon can take customer purchasing data and translate that into store selection. By creating a database that curates store inventory from both in-area online book purchases and in-store purchases, Amazon's bookstores can become a hub for locals and an information station for tourists. Overall, physical locations are an excellent way to meet your customers face to face, build customer loyalty, and gain even more feedback than a “How Are We Doing?” email request. Amazon Prime memberships and benefits could also be extended to in-store experiences like exclusive book clubs or author meet-and-greets. If they start serving coffee in these bookstores, Starbucks should be nervous.
Where will Amazon go next? Honestly, they sell everything you could possibly need; so, their potential retail location catalog seems endless. In addition to Whole Foods grocers, campus bookstores, local bookstores, and convenience stores, Amazon could create in-store digital music experiences or V R movie theaters. Could you imagine a mall filled with only Amazon stores and experiences? I definitely can, and I will be watching this behemoth closely to see where they will embark upon their next retail adventure. Have you checked out a physical Amazon store recently? Connect with me and let me know your experience.
Amazon Books includes consumer reviews on each item in the store.