This week, e-commerce giant Amazon opened its first physical bookstore. Initially this seems a rather odd move for a company that many consider the greatest online competitor to traditional physical department stores. However, this move coincides with a number of tech giants that have pursued direct retail sales by opening up shop. Apple and Microsoft have spear headed this trend with the recent opening of three Microsoft stores here in Vancouver in just the last few years.
One reason for Amazon’s recent decent into the physical realm is that it plays into the company’s plan for growth. Every year, Amazon has made efforts to expand their warehouse infrastructure, customer data stores, and broaden its user experience. One of the major point of difference between an e-commerce website and a physical department store is that customer service is easily accessible for customers in the latter. A physical store allows Amazon t0 finally break this divide, where customers “can also test drive Amazon’s devices,” meaning Kindles, Echos, Fire TVs, and Fire Tablets, according to Vox News. Being able to deliver customer support and service through an actual sales representative will undoubtedly improve Amazon’s appeal to more traditional buyers.
A physical store can also aid in making Amazon’s delivery system and operations more efficient. A major criticism of Amazon’s premium membership, Amazon Prime, is that its propounded “One-day delivery” offer is sporadic and often only applies to a limited number of products. A physical store, however, can double as a delivery hub for expedited shipping. Placement of physical stores in cosmopolitan centers could serve as a perfect means of ensuring logistical efficiency, which would result in a greater variety of one-day delivery products. Ultimately, this could provide the proper incentive for web shoppers to go Prime.
Despite the irony in a decision by an internet giant to expand into the market it was seen as replacing, Amazon’s decision to unplug may have something to it.
References:
Why Amazon just opened a physical bookstore
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