Is Amazon Building Department Stores?
Lot of ink already spilled on Amazon department stores. Let's talk!
What's my take? It's not just one reason they are doing this!
Data. Amazon department stores are a huge play for consumer data Make no mistake if you walk into an Amazon department store, you are walking into the world's largest fishbowl. Amazon needs more and better customer data to fuel 1P, 3P, but most importantly - its advertising business. Amazon cannot challenge Facebook and Google in advertising without unique data those companies cannot get.
Product segment. There are many segments that are not profitable online. Pretty much anything below $20!
Apparel. Even "king of brands" Nike could not launch an apparel business without physical retail. Enough said!
Returns. What % of a typical multichannel retailer's returns are back to store? Almost all of them. Just think of the waste that creates at Amazon's scale. And, opportunity to make another sale.
I think the third-party business could be a play here. Marketplace as an incubator for the launch of new brands in physical retail What will they call it? I don't think it will just be "Amazon". I think it will be XXXX by Amazon. Where X is some kind of experience that highlights the goal (for grocery they used "Fresh")
