Amazon is expanding physically in a big way. The online behemoth has filed plans to open its first brick-and-mortar retail location in Glendale, California.
Amazon Style is set to be an ample space with an open layout to feel more like a mall than a traditional physical store. In addition, it accommodates both shoppers and employees — this is very important for Amazon because its employees are typically nonunion, making them cheaper to hire and giving the company more flexibility in staffing levels.
Focus on Customer Service
Amazon has found that the most efficient method to grow its business is to use the good old brick-and-mortar model. It is something that many people have been saying will happen for a long time, but no one thought it would. The e-commerce giant has always seemed to be solely focused on online sales and growing its online presence at the expense of physical stores.
A few years ago, it was reported that Amazon was working on an app that would allow customers to order any items through their mobile phone while they were in a physical store. It would then send employees to grab the items and bring them back to the customer. Amazon has since abandoned this idea to expand into actual stores themselves. It started by buying Whole Foods, its largest purchase to date, for 13.7 billion dollars. It was a subtle indication of the company’s intention to expand physically.
Their business model revolves around customer feedback and satisfaction, and they are championing the eCommerce landscape with their strong presence. Customer service is at the heart of success for any business. To experience what Amazon offers to its customers online, having a strong internet connection can truly enhance that experience, so we recommend Smithville Bundles for a great connectivity experience.
Amazon Is Arranging to Expand Physically into Kohl’s Stores
Amazon plans to put Amazon products like Echo and Kindle in these department stores. It would also offer shoppers a new, convenient way to return Amazon items that they no longer want or need.
Kohl’s is in the middle of a turnaround plan, so it makes sense to explore other options to help their business grow. Kohl’s has already started carrying Amazon products in its stores. Amazon Looked future in Kohl.
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Why Do Physical Stores Matter to a Company like Amazon?
“We are the future of retail,” said Amazon’s Jeff Bezos last year in the New York Times. So, what exactly does that mean?
Physical stores and e-commerce may seem like two separate worlds, but they’re not. Instead, they are both parts of a single world increasingly shaped by Amazon and its competitors.
Amazon’s investments in and experiments with physical retail are more than just a side project. Instead, the company seems to be quietly preparing itself for a future where e-commerce and physical retail mix in new ways.
The plan is to continue expanding its online presence and allow customers to pick up or drop off packages at Whole Foods stores or other retailers or even have them delivered from warehouses located inside some Kohl’s department stores. Amazon has also been testing stores that do not require cashiers or checkout lines.
The Company Is Coming to a Store Near You
The company says it wants to experiment with new ideas for physical stores to attract customers, who prefer to shop that way. Of course, that is the primary reason for expansion, but we think there’s more to it. Amazon is gearing up for future competition and opportunities. The company tries to remain proactive in its strategies, and this time is no different.
The Expansion
The company has opened 11 bookstores, and it seems likely to open many more. So what’s behind this brick-and-mortar expansion?
Cost savings probably aren’t a significant factor. The stores have been loss leaders, but not disastrously so: Amazon’s most recent quarterly report said that the retail operation had reduced losses from $482 million to $41 million in the first nine months of the year. Overall, the company has made only $1 billion in retail sales over the past three years.
Amazon Got This
The scale and scope of Amazon’s business are hard to match. It ships millions of packages a day, racking up hundreds of millions of credit card transactions; the number keeps growing each year. Without question, it is one of history’s most successful retail operations.
