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by Harold Newman
(Mar. 27, 2020) — Amazon has been considering the idea of a brick-and-mortar store for a long time. Finally, after a lot of fuss that occurred over Amazon’s planned store opening in the heart of Manhattan, a leading retailer has made an unexpected move and excited everybody with the news of its first physical shop grand opening on the campus of Purdue University, Indiana.
Although the whole idea was just an experiment, Amazon with its mere announcement about going physical has given college bookstores as well as other online retailers a run for their money. Why would an e-commerce giant want to launch its shop when the rate of its online sales outpaced an estimated index of 15%? It is likely to be done as an attempt to enhance the brand’s position and make even more powerful products.
There is not much to be discussed at the moment, but Amazon’s newly-opened shop in Purdue, Indiana is definitely headed for success. Being more like a pickup-and-returns store, this center is called to make books for students more affordable. More than that, with a membership at this Amazon center, students will be able to get music and video at considerably reduced prices. It seems that Amazon has decided on a student audience with ambitious plans to open similar locations in other educational institutions. But what about the perspective of launching stores that would allow all people to browse the shop aisles? Will Amazon emulate the best and become a brick-and-mortar retailer?
With quite a large number of online giants that went physical, people want to see more online retailers converted into shops and Amazon’s store is one of the most expected and desired launches. Last year, the online giant made the first step towards physical retail, announcing its store opening in a lucrative area of Manhattan surrounded by the Empire State Building on one side and the ever-crowded Macy’s on the other. But the long-awaited opening was shadowed with a small but meaningful remark. The would-be store was meant to be yet another point where customers can pick their purchases without a hint of typical shopping.
While Amazon is delaying the initiative, experts make bold predictions. Many global management consultants are convinced that the retail success that Amazon enjoys now isn’t a long-term phenomenon. Thus, it needs alternative ways to market its products. Even with a significant part of sales done online, physical presence would be very beneficial. According to the survey, more than half the customers who shop online turn to brick-and-mortar brand stores. It increases product awareness and creates a strong confidence in a company. Undoubtedly, Amazon is likely to enjoy all the benefits that a physical presence holds for it. So, any time soon we can expect yet another online giant to join the time-honored way for retail.
About the Author:
My name is Harold Newman. I assist clients with acquisitions or other business combinations, guiding them through debt or equity financing transactions in which I utilize my broad range of legal, financial, and business experience. Currently I am participating in the new educational project EssayswritingORG based in New York as a reporter and essay writer, and serve as an assistant editor and reporter in the market business academic sphere.