Amazon Opening Department Stores?

The emergence of Amazon and rise of online shopping turned the department store industry on its head. Now, the online retailer is reportedly looking to move into that very industry they helped to disrupt.


Key Takeaways

  • Reports claim Amazon has plans to open physical stores to sell products in the decline of other big department stores
  • Amazon can use this opportunity to boost their own private label products and their visibility to an even larger audience
  • This move to more physical spaces can help Amazon provide even more and improved services for customers
  • More opportunities for Amazon could mean more opportunities for their selling partners


Amazon Picking Up Department Store Pieces

Many department stores like J.C. Penny and others have gone into bankruptcy because of their meteoric fall of sales in the past decade, caused mostly because of the rise in online shopping marketplaces like Amazon. With all the losses brick-and-mortar stores have suffered in the last years, many vacant locations have become available. But who could take up the kind of real estate that is failing?


The very company who caused its downfall, Amazon.


Reports claim that the e-commerce giant is planning to open their own retail locations where shoppers can come shop for products in person.


Why Would Amazon Open Physical Locations?

Amazon isn’t new to having physical shopping locations. They already have many locations like Amazon Books, Amazon 4-Star, Amazon Pop-up, and Amazon Go, where customers can buy products in person that might also be available online. They still see the value in providing that positive experience for shoppers even in person.


And with Amazon having recently launched their own private label of products, like Amazon Basics, they have a whole line of products that people have only seen online. Having physical locations for shoppers to see and even try these items will increase their own brand awareness and reach shoppers that may be hesitant about purchasing items online that they cannot hold in their hands first.


Improved Shopping Experiences

Providing their customers with the best service is what Amazon is all about and having places for them to come only improves that service. Many shoppers are hesitant to purchase items like clothing unless they can try it on or handle it first to ensure it is something they want. With their own department stores, they could provide that assurance.


These locations can also act as hubs for Amazon’s online businesses, doubling as warehouses where products can be shipped to nearby online customers or places for returns to be made easily. This could save online customers time and make their purchases faster, even reaching audiences that had limited access to online deliveries.


Possibilities for Vendors and Sellers?

The potential of Amazon department stores is not necessarily limited to their own private label products. They could also be used for selling other business’ products through their storefront, much like the Amazon 4-Star, where highly rated top-selling products have another venue for reaching new customers. This could translate to these new Amazon locations, providing increased sales and brand awareness for other companies and their products.


Navazon’s Amazon experts stay up with the latest in the e-commerce industry, ensuring businesses find success and brand growth even in this constantly changing landscape. Contact us today to see how your business could increase sales on Amazon.