Comment on Milton Leung’s Blog Post “Amazon Needs Physical Presence”

In his post, Milton Leung describes how the online franchise Amazon is considering a change to their business plan and begin opening up stores. Amazon, who has been successfully operating online, is considering the expansion because they believe they can profit more with actual stores and physical locations where customers can go and browse their products. Milton Leung agrees with the article and states that with Amazon’s current operating structure, it’s no surprise that they aren’t making much profit. However, I believe that Amazon should reconsider their approach if they want to increase their revenue. Their current plan of building physical store locations is the hopes of increasing traffic to their brand, but an alternative way to increase traffic to their brand could be promoting on different forms of social media i.e. video game forums and other places of high traffic that people visit. With physical locations, there runs the risk of not enough people going to the store or not enough people buying items from the store, and because Amazon is a brand that sells so many different items, the stores would only be able to hold a tiny fraction of the items that customers are looking for online. The majority of the customers of Amazon would stick to the convenience of searching for items online from a catalogue that has a greater variety of items than a Amazon store could ever have.

 

Amazon Needs Physical Presence

Leave a Reply

Your email address will not be published. Required fields are marked *