Go Amazon ➡️
Inside Amazon Go, a Store of the Future
The technology inside Amazon’s new convenience store, opening Monday in downtown Seattle, enables a shopping experience like no other — including no checkout lines.
AmazonBasics is moving well beyond the basics
Quartz trawled through the Internet Archive’s Wayback Machine, which archives websites throughout the history of the web, to see how many products Amazon has offered on its AmazonBasics landing page. The earliest archived result is for Jun. 8, 2013, when 252 products were listed for sale. Four and a half years later, there are currently 1,506 products for sale.
For that, Amazon has a web-spanning advertising network just like Google’s and Facebook’s—which is the reason a vacuum cleaner you once almost bought can haunt you for weeks on random websites. The Amazon Advertising Platform lets advertisers manage ad buys across multiple advertising exchanges, and it has quietly become as familiar to marketers as its equivalent from Google-owned DoubleClick.
For example, if I'm the Sour Patch Kids brand manager, I can currently leverage the AAP to reach 18-30 year-old females in the Seattle area. However you can easily imagine a world in which I can also sub-target only those who are Prime Subscribers so that when those individuals later to go to the Amazon Go store (because why would an Amazon Prime member go to any other store for grab-and-go items) I have to then pay Amazon again for driving that purchase.
Given that, it also wouldn't surprise me if Amazon allows companies to pay them for premier shelf space. Google allows advertisers to pay for premium placement in search results so why can't Amazon also allow brands to bid for the right to physical shelf space locations in an algorithmic manner as well? Though I'd hate to be the worker who has to go in there and constantly re-arrange boxes of salad.
Amazon to Deliver Whole Foods Groceries
The online retail giant will add Whole Foods to its one- and two-hour delivery option, Prime Now, in the grocer’s hometown of Austin, Texas, as well as Dallas, Virginia Beach, Va. and Cincinnati, Ohio.
For example, for convenience stores (which is what Amazon Go is) they are doing away with the checkout and staff, allowing people to just grab-and-go whatever items they need. This wouldn't be possible without their existing Prime membership technology (that online-offline integration).
In addition, Amazon could go after big box retailers like Best Buy. I can see them building out a "showroom" of sorts which has zero inventory, just a big room with one unit of each SKU (like a few types of TVs). Customers can see the items in-person (which some people really value, especially for bigger-ticket items like TVs). However, when the customer goes to checkout, instead of grabbing some massive box off a shelf and lugging it home, the customer simply places an Amazon.com order at the store after which the item is delivered like any other item by next-day or same-day shipping. This also means that Amazon can build big box retail-type "experiences" in a much smaller footprint than your typical Best Buy because they don't need to carry any inventory.
Given all that I wonder how traditional retailers with legacy cost structures are going to compete.
Best Buy's resurgence continues despite fierce competition
The resurgence of electronics retailer Best Buy accelerated amid strong sales of products such as wearable technology and smart-home devices.
"Against a backdrop of continued healthy consumer confidence, we believe broad-based product innovation is resonating with consumers and driving higher spend," Best Buy CEO Hubert Joly said in a statement. "And, with our effective merchandising and marketing activities, combined with our expert advice and service available online, in-store and in-home — we are garnering an increasing share of those dollars.”
Companies should also explore partnership with other tech companies like Google Shopping Express and Instacart to provide the technical and logistical infrastructure needed for on-demand fulfillment.
It isn't doom and gloom for all traditional retailers but it is important to recognize and act quickly to stay competitive against an ever growing Amazon.