The answer is, what client needs
In the last weeks following the publication of Amazon opening physical shops, not just one in Barcelona but more than 400 around the world, many people asked me , why ? What is Amazon doing ?
I was surprised about people surprise … and respecting many other people might not understand let me give you my view on this
1 the world is one
People, clients live one life We are used to move from channel to channel , window to window expecting to feel in just one environment
2 the new economy of experience
No matter where a retailer starts its business, if as Amazon they sell online Physical goods and especially books the experience is not complete unless you touch and you feel
I love reading and “amazoning» for books- their online experience is awesome , going to bed after buying the things you want to read and waking up knowing that after your Coffee the door will ring and your books will be there is the most … But we know that something was missing
I love to go alone to the bookstores and lose myself opening, feeling, reading a bit … They knew something was missing too
3 physical touch is always important
There is another key reason for Amazon to open physical places
Having your clients there , close to you , coming and seeing you at your place is priceless and they wanted to add that piece of the consumer journey to their experience too
4 cost, cost, cost
Everybody talks about Amazon as a great success but their numbers are still red
Being a premium customer for books and receiving in less than 12 hours whatever you buy makes you understand why this can’t be profitable … No big margins from books and courier brings me many to my door …if Amazon starts opening shops they can have different uses one of them becoming the place I pick them up with the incentive of a promotion and the reduction of costs from there side … They will send many other people’s book their and increase traffic …
5 revenues, revenues, revenues
It is true that clients buy more online than in the shop but what if we combine both experiences and we have an exponential growth ??
No matter where a retailer starts, where they are stronger, their clients are physical and many of us not native and still need to experience the pleasure of all senses ..
Delight all senses of your customers
And do not forget… Amazon wants to become the biggest retailer on earth…Fisical & Digital