Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Mon Jan 27 2014 11:35:44

Would Amazon and Google Retail Stores Impact eBay?

By: Ina Steiner

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Will Amazon and Google open physical retail stores, and what impact would that have on eBay? SunTrust's Bob Peck issued a report on Monday, "5 Reasons Google and Amazon Should Open Retail."

One reason Peck cited was to help consumers learn new technologies, including wearable technology (that was big trend at the recent Consumer Electronics Show). "Given the roll out of new devices from Amazon and Google, we think it would make sense for them to explore a physical retail strategy as well, rolling out their own stores. We underscore that the companies have not informed us of any potential plans, but we think it could make sense over time."

Peck referred to Google products: the Nexus line, Chromecast, Chrome books, Wallet, Google TV, and soon Glass and possibly Nest; and Amazon products: a whole family of Kindles and whatever other device it's working on - possibly a phone, according to press speculation. The devices "need to be experienced by consumers so they can understand them better and decide why they'd want to buy one."

However, he wrote, "The question is whether Google or Amazon need their own physical stores, or can they have a store-in-a-store in one of the large retailers ("store-in-store")."

While Peck barely mentioned eBay in his report, it's interesting to note that eBay is not looking to compete with retail stores, but rather, partner with them. eBay isn't working on developing gadgets for consumers, but on technology for retailers, such as point of sale systems and its "shoppable windows" - video screens placed in store windows to advertise items that can be purchased through eBay Now and delivered to buyers within two hours.

Peck made a case for why he believes Amazon and Google need physical stores, though he noted that he does not expect any imminent news.

One of the benefits to Amazon of opening physical stores cited by Peck that's most intriguing is the concept of "infinite inventory":

"Another possibility would be to have smaller but efficient stores (i.e., RadioShack), where consumers could walk in, play with the technology, and immediately order a product to have Amazon deliver it the same day / next day. This would enable the concept of "infinite inventory" within each store. For Amazon, this could also apply to more product categories than just Amazon branded hardware like Kindles. Consider the potential of showroom stores offering large selection of demo SKUs across many categories along with access to Amazon's global inventory, further helping change the way consumers shop."

In 2012, Charlie Rose asked CEO Jeff Bezos if Amazon would develop brick-and-mortar stores. Bezos said he would love to, but only if Amazon had a "truly differentiated idea."

Do you agree there's a need for Amazon and Google to launch physical retail stores, what would they look like, and how would that impact eBay?




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Perminate Link for Would Amazon and Google Retail Stores Impact eBay?   Would Amazon and Google Retail Stores Impact eBay?

This user has validated their user name. by: Philip Cohen
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Mon Jan 27 14:03:51 2014

If Apple can do it, why not others, although Apple has only a limited range of items to display/sell, whereas Amazon's much larger range of items would need considerably larger premises, so I suspect it's not going to happen ... regardless, anything that can potentially make Johnny Ho's life more difficult, is fine by me ...

Perminate Link for Would Amazon and Google Retail Stores Impact eBay?   Would Amazon and Google Retail Stores Impact eBay?

by: Eric Saeger This user has validated their user name.

Mon Jan 27 16:27:27 2014

When will this idiotic nonsense die?  Why on earth would someone drive to a store just to order something, then drive back a few days later to pick it up?  That idiotic Bloomberg piece with Donahoe seems to have lent credence to this utterly moronic idea, but -- wow, how fricking stupid.

Perminate Link for Would Amazon and Google Retail Stores Impact eBay?   Would Amazon and Google Retail Stores Impact eBay?

by: Orwellwasright This user has validated their user name.

Mon Jan 27 16:41:02 2014


I guess no one informed them that major retailers are in the midst of a major shift in consumer spending

Rents are sky high, occupancy taxes are sky high obamacare has made the cost of employees skyrocket , Price points are way down and buyers are far pickier then ever

B&M chains are closing stores by the dozens, downsizing staff and location sizes

Why on earth would these guys think they can transfer an online business to a physical storefront ?

mentioning Radio shack which has been flirting with bankruptcy for over a decade and who destroyed their brand name tells you all they need to know

The most humorous aspect of the article was quoting ebay as saying they wish to Partner and Not compete with retail stores .

I rather partner with a Pirhana droped down the front of my pants

ebays partnerships last up to the second ebay can make one cent more by dumping their Partners.

Perminate Link for Would Amazon and Google Retail Stores Impact eBay?   Would Amazon and Google Retail Stores Impact eBay?

by: Eric Saeger This user has validated their user name.

Mon Jan 27 16:50:07 2014

You know, seriously, it's as though Donahoe and all these other overeducated gimps can't even see the best possible distributors when they're right in their faces:  we the sellers.  Use us as warehousers and distributors, especially we sellers who've built nearly flaweless sales records over the years.  
What a hopeless bunch of imbeciles.  What, is Amazon going to built stores 5 times the size of your basic Walmart Supercenter in every central city in every county, and the selectmen wouldn't have any problems at all from voters?  
Who would even see any viability in this?  This really takes deep, deep stupidity.
Ebay and Amazon already have the best distributor network imaginable: YOU.

Perminate Link for Would Amazon and Google Retail Stores Impact eBay?   Would Amazon and Google Retail Stores Impact eBay?

by: Eric Saeger This user has validated their user name.

Mon Jan 27 16:56:32 2014

One last thing.  I promise, the last thing.
Something similar to this B&M concept was tried before, did you know that?  It was called "the mall."  

Remember those things, the things that used to be in those giant half-deserted buildings you see nowadays?

B&M has failed and is on a scary downward slide.  Why not figure out a way to leverage serious 3P sellers to get stuff to local customers faster?  

Perminate Link for Would Amazon and Google Retail Stores Impact eBay?   Would Amazon and Google Retail Stores Impact eBay?

This user has validated their user name. by: Philip Cohen
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Mon Jan 27 17:02:26 2014

If only even a perfect selling record meant anything to eBay; the fact appears to be, if you are not a national brand, or the like, you are superfluous to Johnny Ho's needs, or so he thinks ...

eBay / PayPal / Donahoe: Dead Men Walking ... http://bit.ly/11F2eas

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by: Eric Saeger This user has validated their user name.

Mon Jan 27 17:35:08 2014

@Philip:  That guy can't get fired fast enough, I swear.

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This user has validated their user name. by: Philip Cohen
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Mon Jan 27 18:43:55 2014

@Eric Saeger, And the only way to help bring that about is hut eBay's share price, and the way to do that is to express your displeasure on the financial web sites, and the more the merrier ...

There is a new facebook page for disgruntled eBay sellers that has started up very recently at
https://www.facebook.com/groups/formerebaysellers/

Perminate Link for Would Amazon and Google Retail Stores Impact eBay?   Would Amazon and Google Retail Stores Impact eBay?

by: Santini This user has validated their user name.

Mon Jan 27 18:51:58 2014

A local Sears hardware store is shutting down. Their rent had been 30 or 40,000 a month but it was going to jump to 70,000/mo!
A fitness center might be moving in...

Perminate Link for Would Amazon and Google Retail Stores Impact eBay?   Would Amazon and Google Retail Stores Impact eBay?

This user has validated their user name. by: Philip Cohen
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Mon Jan 27 18:56:08 2014

I just bought a good pre used, current model, Brother laser printer, mle HL-2270DW (retail ~AUD150) for $40; one only bid—mine ...

No doubt about it, Johnny Ho's doing a great job at eBay, for the buyer, that is, those few that apparently bother with eBay any more, that is ...

I'm still trying to figure out were they are getting their declared income from; from what I can see, as far as auctions are concerned, most of it’sl coming from merchants bidding on and buying much of their own stuff, and they can't keep that up forever ...

Perminate Link for Would Amazon and Google Retail Stores Impact eBay?   Would Amazon and Google Retail Stores Impact eBay?

This user has validated their user name. by: Ming the Merciless

Mon Jan 27 23:27:29 2014

In addition to more variety, I shop online to save time and gas so I DO NOT have drive of a brick and mortar stores miles form my home.

Here's a recent experience I had with The Ho's brilliant new hybrid shopping concept.

I ordered an expensive major appliance from one of The Ho's favorite electronic store partners.

The item advertised free in home delivery, and I within 24 hours I received an email with the time and and date of delivery.

A day before the delivery, Ho's electronics superstore sent me an email that said the item I ordered was temporarily unavailable but that I could it up at the Ming the Merciless store in my city the following day.

I called the electronics superstore and, of course, their 'customer service' department knew nothing. I drove to the store and spoke with an assistant manager who couldn't understand the silly email I'd received about Ming the Merciless's superstore and who knew nothing about my order.  

Later that day I received a call from the store delivery crew telling me they would be delivering my appliance the next day which they did.

Can you just see this scenario repeated thousands of times daily?

Perminate Link for Would Amazon and Google Retail Stores Impact eBay?   Would Amazon and Google Retail Stores Impact eBay?

This user has validated their user name. by: Ric

Tue Jan 28 01:13:16 2014

Is Mr Peck aware of the survival issues facing B & M retailer Best Buy?

Is Mr Peck aware of the survival issues facing B & M retailer JC Penny?

Is Mr Peck aware of the survival issues facing B & M retailer Sears/KMart?

Is Mr Peck aware that WalMart has started to take their ecommerce business seriously because their year/year same store sales are stagnant?

Is Mr Peck aware of the staggering vacancy rates in America's shopping malls?

The idea of Google opening B & M retail locations is laughable given the issues so many existing retailers face. Google needs B & M locations about as much as they need to change their search engine to eBay's Cassini.

The idea of Amazon opening B & M retail locations is only slightly less laughable as Amazon could do so by adding retail space to their distribution centers and operate along the lines of Costco or Sam's club warehouse stores.  At least if Amazon went this route, when their retail operations fail, they can convert the space to increase capacity of their distribution operations.

Ridiculous ideas spouted by investment idiots such as Mr Peck shows why so many companies that bow to Wall Street recommendations fail miserably.

People such as Mr Peck, do not have the first clue about what they are proselytizing about, sway corporations to make foolish investments which turn a healthy profitable company into a struggling operation facing liquidation.

And where are these geniuses when those concepts they recommended fail? Sitting on their desk, dreaming up the next foolish recommendation for the next company led by an idiot foolish enough to listen to a fellow idiot.

It's no wonder why America's biggest retailers are closing stores, laying off employees by the thousands, and struggling to survive. Their CEO's listen to idiots in the investment community who just like to talk and see their names in print.

Perminate Link for Would Amazon and Google Retail Stores Impact eBay?   Would Amazon and Google Retail Stores Impact eBay?

This user has validated their user name. by: ebayisajoke
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Tue Jan 28 03:04:35 2014

I would love to see Google open up to sellers. Only if they treat people honestly tho. Google wouldn't survive conducting business like eBay does.

Perminate Link for Would Amazon and Google Retail Stores Impact eBay?   Would Amazon and Google Retail Stores Impact eBay?

by: Tiffee Jasso This user has validated their user name.

Tue Jan 28 03:11:12 2014

I have to wonder how much truth there is in the figures Google presents. I don't know of one person that bought anything using Google Shopping. They did however buy using Amazon, Ebay and Department Stores own websites. It could be stores are paying more and getting a lot less than for the money than they realize. Even my mother (87 years young) knows how to go to Macys website or any of the other stores she likes to shop at without using Google, Ebay or Amazon.  

Perminate Link for Would Amazon and Google Retail Stores Impact eBay?   Would Amazon and Google Retail Stores Impact eBay?

This user has validated their user name. by: Basset

Tue Jan 28 07:31:08 2014

After Ming's ordeal, a fuming buyer might give a DSR ''ding'' for communication, ''ding'' for delivery time, and a generally unhappy WTH for the other DSR categories: ding, ding, ding, ding, ding!!!

We are more likely to order such an item from the B&M store's own website. The order would be very likely to be in their ''system'' so that it should be accessible by their employees making that business completely accountable for the item

When accountability gets diluted with multiple selling parties involved, the buyer just might end up in the middle of a finger pointing standoff between the selling parties while still waiting for their item to show up somewhere.

Walmart is on a building / re-building spree around here. The new ''model'' stores have a separate counter in customer service for online order pick-up and tracking. So they are building dedicated space for online sales / pick-up in their stores.

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by: FREDDY This user has validated their user name.

Tue Jan 28 09:20:32 2014

Google in a retail store - Why????

I can see Amazon wanting to show off the Kindle products and some electronics but possibly only renting space from October thru Dec.

Poor ebay left out in the cold - again. What will they do to do a one up??????  

Perminate Link for Would Amazon and Google Retail Stores Impact eBay?   Would Amazon and Google Retail Stores Impact eBay?

This user has validated their user name. by: Ming the Merciless

Tue Jan 28 21:59:03 2014

DY asks:



Ebay will create an intelligent hologram of Chief Engineer Montgomery Scott so that he can invent low priced transporters for every member's home (for a monthly fee of course) for virtually instantaneous delivery of purchases.

The application of string theory has already instanteously transported an atom from Point A to Point B.

Transporters at this moment in history make about as much sense as delivery drones and without the FAA problems.

Beam The Ho up and engage.

Perminate Link for Would Amazon and Google Retail Stores Impact eBay?   Would Amazon and Google Retail Stores Impact eBay?

This user has validated their user name. by: thehosst
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Tue Jan 28 22:56:45 2014

It is bigger power to 2 monopolistic companies. Small sellers are the biggest buyers, if they have an opportunity to sell, something that these 2 are trying to constantly attack.  

Perminate Link for Would Amazon and Google Retail Stores Impact eBay?   Would Amazon and Google Retail Stores Impact eBay?

by: Eric Saeger This user has validated their user name.

Wed Jan 29 11:27:06 2014

I don't know why Donahoe doesn't just go full-nimrod and try something like "First you find it in the B&M store and bring it to the register, then order it on your cellphone, then go the register and tell them you ordered it online, and then they send five dummies to look for it, but it's already in your hand, and then you swipe a few things on a giant flat screen, and God comes out and takes a dump on your head."

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This user has validated their user name. by: Rexford

Wed Jan 29 13:47:26 2014

Is this retail store inside of a drone or a newspaper truck?

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