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Amazon Going Offline

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Is Amazon Going Offline? According to CNBC.com, Amazon was responsible for 44% of all U.S. e-commerce sales last year. And, according to quora.com, Amazon reaches upwards of $300 Million in sales every day. Yet, just this week they announced they are opening another brick and mortar store. The new shop announced by Amazon will be located in NYC and offer toys and home goods. With this announcement, many people are wondering what the motive of this new store could be. Furthermore, many people wonder why would such a successful online business invest in physical retail when physical retail is basically on its deathbed.

We have a few ideas.

The Customer Experience Everyone knows that today’s retail industry is driven by the customer experience. Customers want to feel connected with the brands they are buying and the stores they are buying from.
Amazon has already paved the way in customer experience through Amazon Prime. So, it’s only natural they would try to do it again through brick and mortar stores.

The new store, previous bookstores and Amazon Fresh stores have all been designed with the customer in mind. They are quaint, aesthetically pleasing and convenient. These stores are not designed to be a one-stop-shop, but rather a fun place for consumers to experience the joys of the super online store in person. By achieving the goal of improving the customer experience through a physical store, Amazon will become even more of a household name than it already is.

Innovation If there is one thing Amazon is known for, it is innovation. They set the stage for online memberships, subscription shopping, and free shipping. History shows us that Amazon loves to try new things, even if those new things are a little bit risky. Therefore, the fact that they are opening up a slew of physical stores should not be surprising at all, especially when these stores showcase pricetags that fluctuate instantaneously and self-changing price tags. If these physical stores take off, it will only prove that Amazon’s big, bold moves always pay off.

Nothing to Lose The bottom line of all this is that in reality, Amazon has nothing to lose. The small stores they are opening up only require a fraction of the overhead that their already successful online business does. Furthermore, although the store will make a revenue for the business, the intent could simply be to raise brand awareness and increase the number of Prime memberships for the online store.

No matter the reason Amazon has invested in these stores, people are buzzing about them already, and therefore, the stores have already been proven a success for Amazon. And, don’t worry. We have a good feeling Amazon won’t be going completely offline any time soon.

What do you think? Have you ever been to a physical Amazon store? If so, what were your thoughts? Did you like it?

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