Amazon Store?
Is Amazon going to open a store in Seattle? Physical bricks around the corner? Clicks to bricks? http://eicker.at/AmazonStore
Pew: 52% of adult cell phone owners make their in-store decisions mobile, 19% purchase online; http://eicker.at/MobileCommerce
Pew: “More than half of adult cell phone owners used their cell phones while they were in a store during the 2011 holiday season to seek help with purchasing decisions. During a 30 day period before and after Christmas: 38% of cell owners used their phone to call a friend while they were in a store for advice about a purchase they were considering making, 24% of cell owners used their phone to look up reviews of a product online while they were in a store, 25% of adult cell owners used their phones to look up the price of a product online while they were in a store, to see if they could get a better price somewhere else… Taken together, just over half (52%) of all adult cell owners used their phone for at least one of these three reasons over the holiday shopping season and one third (33%) used their phone specifically for online information while inside a physical store – either product reviews or pricing information.”
Pew: “There are a number of demographic patterns in these survey findings. Specifically: Cell owners ages 18-49 are significantly more likely to use their phones for online product reviews than are cell owners ages 50 and older. Cell owners ages 65 and older are especially unlikely to do this-just 4% did so this holiday season. Urban and suburban cell owners are roughly twice as likely as rural cell owners to have recently used their phone to look up online reviews of a product they found in a physical store. Non-white cell owners are more likely than white cell owners to look up online product reviews, and those who have attended college are more likely to do so than those who have not. … Online price matching and looking up online reviews frequently go hand in hand. Overall, of the 33% of cell owners who used their phone recently in a store to look up either product reviews or prices online, roughly half (representing 17% of all cell owners) used their phones to engage in both of these activities. … One in five ‘mobile price matchers’ ultimately made their most recent purchase from an online store, rather than a physical location – When asked what happened on the most recent occasion where they used their phone to look up the price online of a product they found in a store, these mobile price matchers point to a range of outcomes: 37% decided to not purchase the product at all, 35% purchased the product at that store, 19% purchased the product online, 8% purchased the product at another store”
GigaOM: “This last piece of data shows the challenge for retailers, who lost about 5 percent of transactions that began with online price research, even though they have the customer in-store. That’s something that retailers have been increasingly sensitive about, especially with promotions like Amazon’s holiday offer to knock off $5 from certain products if users checked prices through Amazon. But the data also show how retailers can fight back. They obviously need to be aware of prices online, and they may look at ways to lower prices or match online prices in-store to remain competitive. … The challenge is still considerable for retailers of all sizes. Having consumers walk in with connected computers in their pocket means many of them can find a potentially better deal online or in another store. But retailers should be thinking about how to satisfy their customers’ shifting buying patterns. … It’s definitely going to be harder for physical retailers in this new mobile-enhanced shopping era but there’s still ways to compete as buyers get a lot smarter.”
RWW: “The strategy revolves around having a strong mobile Web presence. That does not necessarily mean an actual native app. If you are in a retail store researching with your phone and you Google the product, the retail store should be one of the first results. With the location abilities of smartphones, the search could even tell you what store or neighborhood you are actually in. The retailer could then be able to offer a deal or an incentive to buy and offer to complete the transaction through the device. The mobile Web app could hook into your mobile wallet and bill you directly or instruct the consumer to see the cashier where payment could be made by either near field communications (NFC) or by scanning a QR code. The idea is to control both the research and the transaction. Channel the consumer to your product.“
Google Maps starts mapping the indoors: detailed floor plans, Maps 6.0 for Android only; http://eicker.at/GoogleMapsIndoors
Google: “‘Where am I?’ and ‘What’s around me?’ are two questions that cartographers, and Google Maps, strive to answer. … And now, Google Maps for Android enables you to figure out where you are and see where you might want to go when you’re indoors. … When you’re inside an airport, shopping mall or retail store, a common way to figure out where you are is to look for a freestanding map directory or ask an employee for help. Starting today, with the release of Google Maps 6.0 for Android, that directory is brought to the palm of your hands, helping you determine where you are, what floor you’re on, and where to go indoors. … Detailed floor plans automatically appear when you’re viewing the map and zoomed in on a building where indoor map data is available. … We’ve initially partnered with some of the largest retailers, airports and transit stations in the U.S. and Japan…”
SEL: “Google is essentially using the same techniques (WiFi and cell tower triangulation) to locate people indoors that it uses outside. Outside GPS is also available, but it doesn’t work inside buildings. Google has apparently made some modifications of its approach to render interior location very precisely but it’s not using sensors or any new technology. … During my call with Google I started spinning out various scenarios for these maps going forward: product inventory information, integration with interior photography, ads and deals and so on. Of course Google wouldn’t say anything about any of that.”
TC: “The initial version of the indoors maps is missing a couple of obvious features. For one, search doesn’t yet work with it – so while you’ll be able to scroll around a map to find a restroom or the shoe department, you can’t just start typing. Likewise, there aren’t any turn-by-turn directions (which may sound silly, but would actually be very useful in, say, a large train station or airport). These seem like logical candidates for future releases, though. … Today’s launch includes participation from many major airports, as well as some big-name retailers like IKEA (which has mapped out all of its stores) and The Home Depot. Of course, Google can’t work directly with each and every indoor venue, so it’s also launching a self-serve tool that will allow store owners to upload floor plans and/or blueprints of their venues. The tool also includes a feature that will help map GPS coordinates to interior of the store.”
RWW: “This is a key move for Google’s mobile business, which up until now could only take you to the front door of the place for which you were searching. Google Maps on the desktop recently got 3D photo tours of small locations, an extension of Street View, but this is a bigger step. When Google Maps goes inside, Google can take you all the way from searching for something to holding it in your hand, advertising and data-gathering all the way. … Interestingly, Bing Maps got interior mapping on its mobile Web version this August, but it didn’t make much of a splash.”
Facebook seems to get serious about music and media after consolidating retailing, news, games; http://eicker.at/FacebookMusic
Parrish, marketing/privacy: We are trying to solve problems that we have not clearly defined; http://eicker.at/MarketingPrivacy
Donato: Social commerce will have its biggest impact with naturally relationship businesses: the locals; http://eicker.at/28
Retailers are integrating Facebook: users are opening up to the idea of shopping on Facebook; http://eicker.at/FacebookShopping
WSJ: Do away with Google? Break up Facebook? We can not imagine life without them, and that is the problem; http://eicker.at/1e
Chase: Why media companies should become more like merchants; http://j.mp/a72pvq
Retailers are embracing social media marketing this holiday season: Which strategies are paying off? http://j.mp/7PmCaw
Gerrit Eicker 14:57 on 7. February 2012 Permalink |
GER: “Amazon sources close to the situation have told us that the company is planning on rolling out a retail store in Seattle within the next few months. This project is a test to gauge the market and see if a chain of stores would be profitable. They intend on going with the small boutique route with the main emphasis on books from their growing line of Amazon Exclusives and selling their e-readers and tablets. – Seattle is where Amazon’s main headquarters is based and is known as a fairly tech savvy market. It is a perfect launch location to get some hands on experience in the retail sphere. … The company has already contracted the design layout of the retail location through a shell company, which is not unusual for Amazon. … The store itself is not just selling tangible items like e-readers and tablets, but also their books. Amazon recently started their own publishing division and has locked up many indie and prominent figures to write exclusively for the company. … This is exciting news and Amazon in a great position to make a strong go out of their retail endeavors. They are starting out local and small mainly to test the waters with the new store, but also to figure out how they’re going to avoid paying massive taxes.”
GigaOM: “The move into retail, if it proves true, would be a big turning point for Amazon and one that ultimately makes sense though the move doesn’t seem intuitive considering Amazon’s online roots. … One of the reasons Amazon has shied away from pursuing retail stores is to avoid charging taxes, something it must do in a handful of states. But increasingly, it looks like Amazon is accepting taxes as inevitable and so there may be fewer barriers to moving into a retail stores. … The upside is that Amazon can let people get hands-on with their products, and they can provide a high level of customer service, especially for its Kindle line of tablets and e-readers. … Amazon has signed deals to get Kindles in a lot of existing retail stores but having its own boutiques could be a way to really highlight its products. … I agree that Amazon needs to think about building out its whole service. It’s not an online seller, it’s a seller. And that means you work to provide the best selling experience possible. … The strategy is not going to threaten Walmart any time soon. I don’t think Amazon wants to go the big box route… It could be that the new store remains just a test and not a long-term bet. But I still think it’s likely that we might see local Amazon stores when all is said and done.”
TNW: “If Amazon is to roll this initiative out permanently and further afield, it will have to feel confident that its profits will be bolstered accordingly, so it will be interesting to see how the associated overheads of running a store will be factored in to its launch strategy. Furthermore, this will have implications on its efforts to sidestep states’ sales taxes on the grounds that it operates online. – Back in December, we reported on eBay’s first bricks-and-mortar store in the UK, a boutique that opened for only five days and saw 2,500 customers arrive through its doors. It didn’t have any tills, and it was pretty much a ‘QR code shopping emporium’, with shoppers able to browse over 350 items provided by a selection of the top-rated eBay sellers, with purchases made using mobile devices.”
RWW: “It’s not a new rumor (it dates as far back as 2009), and it would be a departure from Amazon’s strategy thus far. In December, Launch reported the retail store rumor, adding that Amazon plans to sell its own branded merchandise. Amazon is better known for threatening real-world retail than for promoting it. But Amazon’s moves in the past few months make the strategy seem more sensible. … Amazon has avoided sales taxes by remaining a purely online retailer, giving its customers the incentive of the lowest price. But lately, sales taxes on online purchases have started to seem inevitable, as Amazon’s deal with the state of California shows. Once Amazon resigns itself to sales taxes, that’s one fewer reason not to bring its retail might into physical stores.”
VB: “Rather than being a high-inventory big-box retailer on a Target or Walmart scale, the Amazon store is said to be planned as a boutique carrying high-end, high-profit-margin items as well as the brand’s Kindle line and accessories. – In a way, it would be a bit like the Apple stores one sees in every shopping mall these days, with a few big-ticket goodies in other verticals, as well.”
TC: “This will also encourage the movement from the agent-publisher-distributor model of book publishing into a direct to consumer model that Amazon will spearhead. … As I said before, the Fire is Amazon’s Trojan Horse. However, rather than the wary hold-outs bringing in Amazon’s market by buying the fire, Amazon will bring the Trojans to their own branded stores.”
pC: “The report comes at the same time as bookstore chains Barnes und Noble, Books-A-Million and Canada’s Indigo are saying they will not carry Amazon Publishing titles in their stores, though it is unclear how that boycott will actually be carried out.“