Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Fri Feb 3 2012 13:31:57

Amazon Mulls Move into Retail Stores and Local Showrooms

By: Ina Steiner

Sponsored Link

Retailers are upset about "showrooming," the phenomenon where shoppers come to a brick-and-mortar retail store to view and learn more about products, but then buy the items online using mobile devices or their home computers.

Amazon could be about to further disrupt the retail industry - rumor has it that Amazon will create local showrooms of its own!

The New York Times Bits blog pointed out that Amazon.com is already "expanding into the physical." Bits writes, "Instead of using everyone else's store as a showroom for e-commerce, the retailer could control the process and operate its own showroom."

The Times was riffing off a December blog post by Jason Calacanis on Launch.is where he wrote, "Just heard an interesting piece of gossip from a very credible source: Amazon is going to open retail stores and will start making its own branded merchandise."

What would that mean for local retailers? And more importantly to EcommmerceBytes readers, what would that mean for small online sellers, both those who sell on the Amazon marketplace and those who don't?




Comments (17) | Leave Comment | Permalink

Readers Comments

Perminate Link for Amazon Mulls Move into Retail Stores and Local Showrooms   Amazon Mulls Move into Retail Stores and Local Showrooms

This user has validated their user name. by: Ina

Fri Feb 3 13:34:16 2012

I forgot to mention, Amazon already has its own private brands, see this 2009 article.

http://bit.ly/An5urJ  

Perminate Link for Amazon Mulls Move into Retail Stores and Local Showrooms   Amazon Mulls Move into Retail Stores and Local Showrooms

by: Patricia This user has validated their user name.

Fri Feb 3 14:23:41 2012

I'm not quite sure what this all means.  Will they be selling from their stores or will this be a place to go simply to see the merchandise you want to order?

Perminate Link for Amazon Mulls Move into Retail Stores and Local Showrooms   Amazon Mulls Move into Retail Stores and Local Showrooms

This user has validated their user name. by: Philip Cohen

Fri Feb 3 14:35:51 2012

Who cares? And, what difference will it make? It will all still be no more than a marketing operation for stuff sourced from China. Are all those books now "made" in China too?

Perminate Link for Amazon Mulls Move into Retail Stores and Local Showrooms   Amazon Mulls Move into Retail Stores and Local Showrooms

This user has validated their user name. by: Ina

Fri Feb 3 14:49:56 2012

Patricia, that's what people are speculating about - perhaps they would do both.

Perhaps Amazon envisions a store like Apple, one where you can go in and buy Kindles and Kindle accessories - or maybe even a mix between an Apple store and a book store with classes and book signings. And where customers can place orders using on in-store Kindles.

The ideas are endless!

Perminate Link for Amazon Mulls Move into Retail Stores and Local Showrooms   Amazon Mulls Move into Retail Stores and Local Showrooms

by: Patricia This user has validated their user name.

Fri Feb 3 15:33:14 2012

Ina - that makes sense but won't it encroach on their main online business?  So far they've been able to escape collecting sales tax and I've always seen that as an advantage for online sales.

Perminate Link for Amazon Mulls Move into Retail Stores and Local Showrooms   Amazon Mulls Move into Retail Stores and Local Showrooms

by: Patricia This user has validated their user name.

Fri Feb 3 15:34:09 2012

Philip - we don't have much choice right now.  I recently bought a 42" TV from Amazon - of course it came from overseas - we don't build them here anymore.

Perminate Link for Amazon Mulls Move into Retail Stores and Local Showrooms   Amazon Mulls Move into Retail Stores and Local Showrooms

This user has validated their user name. by: Philip Cohen

Fri Feb 3 19:54:15 2012

Patricia, I've had my 42” some years now and it was then made in Japan. Of course, they are now about a quarter of the price they were then. Fortunately, we in Australia export more in raw materials to both Japan and China than we import back from them. Not that that does anything for our manufacturing industries, because we also now have less manufacturing industries. We simply cannot compete with the Chinese low cost of labour.

Well, at least the world should be a somewhat safer place now because, as much as we need them for our exports, the Chinese need “the west” to consume their manufactures.

Now all we have to (still) worry about is all the fundamentalist nutters running around the middle east. Maybe we could give them some knitting to do?

Perminate Link for Amazon Mulls Move into Retail Stores and Local Showrooms   Amazon Mulls Move into Retail Stores and Local Showrooms

by: Patricia This user has validated their user name.

Fri Feb 3 22:57:21 2012

Phillip we definitely can't compete - I hear China pays a tariff of about 5 percent when they import goods here for sale....on the other hand we pay them about 25 percent when we send our good there.  How can we ever compete?  Anyway, free shipping and a good price from Amazon - much cheaper than the B&M stores in my area.  I'd be a fool not to buy from them....I'm not that rich that I can be fussy about it.

Perminate Link for Amazon Mulls Move into Retail Stores and Local Showrooms   Amazon Mulls Move into Retail Stores and Local Showrooms

This user has validated their user name. by: Philip Cohen

Sat Feb 4 00:25:50 2012

Patricia, I don't think that we in Australia now have any tariffs on any imports except a still reducing tariff on motor vehicles, I think. Free trade is what they call it. It also let's all those ''caring'' corporation export many of our jobs to low wage countries. I wonder who they think will be buying all their overseas manufactures in 10 or 20 years time? I agree, who wants to go back to the days when bought items were something you had to save for and valued. Still there is a price to be paid for helping China drag itself into the twenty-first century, and that price is not going to be paid by senior executives of ''international'' corporations such as eBay ...

Perminate Link for Amazon Mulls Move into Retail Stores and Local Showrooms   Amazon Mulls Move into Retail Stores and Local Showrooms

by: Patricia This user has validated their user name.

Sat Feb 4 11:34:40 2012

China?  Phillip we're about to do that with all of Asia - yet another NAFTA in the works.  They are - pandering to huge corporations at the expense of the masses -  in no time at all we will have to work for 10.00 a month because there will be no other jobs!!!  Who will be left to buy their cheap goods?

Perminate Link for Amazon Mulls Move into Retail Stores and Local Showrooms   Amazon Mulls Move into Retail Stores and Local Showrooms

by: Digmen1 This user has validated their user name.
Web Site

Mon Feb 6 14:50:37 2012

@Philip
Those high wages you Australians are earning are coming back to bite you.
Quantas, Ford, Holden, Steel Mills in Newcastle, Dick Smith.
They are all closing and downsizing.
You can't pay Australian check out girls $18.00 when you are so close to Asian workers at $18 a week!

Perminate Link for Amazon Mulls Move into Retail Stores and Local Showrooms   Amazon Mulls Move into Retail Stores and Local Showrooms

by: Digmen1 This user has validated their user name.
Web Site

Mon Feb 6 14:53:19 2012

As regards Amazons new move.

Over the years I have seen various mail order companies open retail stores.
So this is no different.
It is one of 3 things.
They are genius marketers.
They are not happy with their level of sales.
They see that online sales are stuck at 10% of the market and people like to go to the mall.

Perminate Link for Amazon Mulls Move into Retail Stores and Local Showrooms   Amazon Mulls Move into Retail Stores and Local Showrooms

by: Digmen1 This user has validated their user name.

Mon Feb 6 14:55:03 2012

Oops
I meant Australian check out girls $18 an hour.

And Phil Paypal is moving into retail stores. They must be on their last legs too.



Perminate Link for Amazon Mulls Move into Retail Stores and Local Showrooms   Amazon Mulls Move into Retail Stores and Local Showrooms

This user has validated their user name. by: Philip Cohen

Mon Feb 6 17:24:26 2012

''Paypal is moving into retail stores. They must be on their last legs too.'' ...

“When Do We Start Calling eBay A Payments Company?”

http://www.businessinsider.com/ebays-transformation-when-do-we-sta
rt-calling-ebay-a-payments-company-2012-1


A picture is worth a thousand words, so they say. This linked “Business Insider” article contains a graph of eBay revenues since 2003. It shows, quite starkly, how eBay’s Marketplace revenue has stagnated since 2008, about the time that the headless turkey from Bain & Co, John Donahoe, got hold of the tiller and started his “destructive renovations”. eBay’s share price has moved little in the same period; ergo the eBay Marketplace has effectively been in decline since 2008.

It should be obvious, even to the simplest of analysts, that as time passes, the Amazon River flows ever more strongly, whereas the eBay Marketplace now consists of little more than a chain of stagnant ponds covered in slimy green algae—and isn’t that a couple of rusting Chinese-made shopping trolleys that I can see dumped therein?

The graph also shows the eBay-underpinning increases in revenue that eBay has received from PreyPal during the same period, that is, from roughly when the “eBafia Don” effectively mandated PreyPal’s use on the eBay Marketplace. Some analysts therefore think that eBay’s future lays in PreyPal.

Well, if anyone thinks that the retail banks are going to let such a clunky, parasitic, flea-sized, “merchant of sorts” middleman such as PreyPal—who after all does no more than ride, precariously, on the back of those banks’ own payments processing systems—continue to nibble away at one of the banks’ principal areas of business for any length of time, all I can say is, dream on …

PreyPal is little more than a clumsy, fraud-enabling middleman the use of which also nullifies the statutory protections that, in many countries, would otherwise be available to users paying directly via a real bank’s credit card.

Then there is PreyPal’s current testing of “mobile payments” at POS in Home Depot stores. Are people actually leaving their funds “on deposit” with this clunky, unlicensed, prudentially unregulated, PayPal “non-bank” that is itself not even licensed to provide credit? Otherwise, how are the funds for such mobile payments being sourced by PreyPal from the payer’s real banking account in a way that the merchant can be sure of ultimately getting paid by PreyPal? Not with the standard non-guarantee of payment that PreyPal serves up to its online merchants, I hope.

And, unfortunately for eBay’s chief headless turkey, Visa’s professional online offering “V.me”, when it is up and running later this year, will undoubtedly put paid to whatever success that the clunky PreyPal has had with professional online merchants outside of its mandated use on the eBay Marketplace. And soon thereafter both these unscrupulous and clunky entities should commence/continue their long-deserved journeys down the gurgler.

Scott Thompson saw the writing on the wall; John Donahoe remains delusional, that fact confirmed by the reported sightings of him waving his mobile phone about and mumbling about UFO sightings over San Jose.

“How secure is PayPal for sellers?”—UK “Guardian”
http://www.guardian.co.uk/money/2012/jan/27/is-paypa
l-safe-protection?commentpage=last#end-of-comments
 

And an interesting follow up to this UK ''Guardian'' article at:
http://www.hadess.net/2012/01/getting-conned-ebaypaypal-fun.htm
l
 

“Vendor Claims eBay Plays Dirty” (Who could have believed it?)
http://www.courthousenews.com/2012/02/01/43529.htm

“Seller Files Suit Against eBay” (“Featured Plus” scam)
http://www.theonlineseller.com/2012/01/27/seller-files-suit-a
gainst-ebay/#comment-383

 
“New Developments in PayPal Class Action Lawsuit over Payment Holds”
http://www.auctionbytes.com/cab/abn/y11/m11/i11/s01

“PayPal: The Horror Stories” (What, more?)
http://forums.auctionbytes.com/vbulletin/showthread.php?t=23
607

Scott Thompson abandons the struggling eBay for the struggling Yahoo
http://forums.auctionbytes.com/vbulletin/showthread.php?p=166
803#post166803

PayPal claims PayPal not a debit card or payment network!
http://forums.auctionbytes.com/vbulletin/showthread.php?t=24148
 
eBay / PayPal / Donahoe: Dead Men Walking

Perminate Link for Amazon Mulls Move into Retail Stores and Local Showrooms   Amazon Mulls Move into Retail Stores and Local Showrooms

by: Digmen1 This user has validated their user name.
Web Site

Tue Feb 7 12:50:16 2012

@Phil

Paypal does millions of transactions outside of ebay.


Perminate Link for Amazon Mulls Move into Retail Stores and Local Showrooms   Amazon Mulls Move into Retail Stores and Local Showrooms

This user has validated their user name. by: Philip Cohen

Tue Feb 7 14:11:22 2012

@Digmen1,

So, read it again, and anyway, how do you know how many transactions PreyPal does outside of eBay?:

“And, unfortunately for eBay’s chief headless turkey, Visa’s professional online offering “V.me”, when it is up and running later this year, will undoubtedly put paid to whatever success that the clunky PreyPal has had with professional online merchants outside of its mandated use on the eBay Marketplace. And soon thereafter both these unscrupulous and clunky entities should commence/continue their long-deserved journeys down the gurgler.

“Scott Thompson saw the writing on the wall; John Donahoe remains delusional, that fact confirmed by the reported sightings of him waving his mobile phone about and mumbling about UFO sightings over San Jose.” [Thanks Ming]

Read the readers’ comments on the following two stories; I suspect that most of them are from PreyPal merchants:

“Does Visa Have The PayPal-Killing Card In Its Wallet?” [Yes!]
http://consumerist.com/2011/03/does-visa-have-the-paypal-kil
ling-card-in-its-wallet.html

“Visa Launching PayPal-Like V.me Service Next Year” [2012]
http://consumerist.com/2011/11/visa-launching-paypal-like-vm
e-service-next-year.html

eBay
/ PayPal / Donahoe: Dead Men Walking

Perminate Link for Amazon Mulls Move into Retail Stores and Local Showrooms   Amazon Mulls Move into Retail Stores and Local Showrooms

This user has validated their user name. by: Stockmiser

Tue Feb 7 15:45:19 2012

// ignore classic philip thread hijack //

I think I agree with Ina - but I think it's mostly about the Kindle.  Yep, I can see it now. Like the Apple store, there will be rows of K-Fires all hooked up and ready to shop on Amazon.  A hands-on experience of the tools and the new online marketplace.  (Plus lots of accessories...)

Oh, and you can probably sit and read freebie books right there...with some coffee...and a scone...

Instead of Apple ''Geniuses'', maybe Amazon ''River Guides''?



Login is required to post comments.
To sign in to leave a comment using your AB Verify User Name, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.