Retail or not to retail!!
Amazon, one of the online giants of the retail industry has been seen experimenting with physical stores. But, why would the biggest online shopping competitor feel the need to take on the physical retail world?
Since 2015, Amazon has been dabbling in the retail industry when they opened half a dozen bookstores. Analysts are of the opinion that Amazon is responsible for the demise of retail stores but they still don’t seem scared. They, in fact, might be able to change the retail shopping experience by bringing in advance technology and automation.
Amazon’s Chief Financial Officer, Brian T. Olsavsky is of the belief that this is just another way to get in touch with the customer base and test what works best for them! The company has not yet shared the facts and figures relating to this new initiative. However, many shareholders experienced a rise in their earnings within the first three months of Amazon starting their offline operations.
So can it actually work?
There are five reasons that this could work for Amazon. Listed below are few such points:
- A showcase for gadgets
Amazon has many physical bookstores and believes in showcasing the books face out. Even though this consumes space, they assume you can use online methods to order everything else. Kindle e-readers, streaming TV devices and other gadgets are given a lot of importance.
Some say Amazon entering the retail sector is a reflection of its inability to provide a retail experience book buyers can enjoy. Customer visiting stores often make impulse decisions and Amazon wants to embark on the same notion of its stores.
- Make customers do the work
Amazon has introduced centralized pickup locations where students can order online and collect them as per their convenience. This helps them reduce the shipping expenses. Similar to this they are also testing for grocery pick-ups.
- Retail technology
Amazon is bringing technology to retail customers around. They have started a process in which sensors can track items as shoppers out them in the baskets or return them. This gets automatically charged to their Amazon account. This saves money on cashiers and helps them assess the best time for a sale. Amazon plans to rent out their data centers to business and groups to power their websites and digital needs in the future.
- Building Loyalty
Amazon’s mission is to deepen customer loyalty by providing their members a great experience. For their prime members are offered the same prices as online whereas, for everyone else, Amazon gadgets match online prices, books and other items sold at a higher rate. But they must ensure they do not damage the reputation by providing a more efficient and timely service to its Prime members.