Amazon's reported plans to open as many as 400 additional brick-and-mortar bookstores got a good deal of attention this week. But if true—Amazon has declined to comment on the reports—it's unlikely such an expansion would be only about selling books.
The online retail giant has for years been aggressively expanding its distribution center footprint nationwide, in order to ship products to consumers faster. The types of stores Amazon supposedly plans to build could provide a secondary network.
"It would still be a store, with a certain amount of SKUs and inventory, but not just a store where you come in and buy," says Constellation Research VP and principal analyst Guy -Frederic Courtin. "You'd also be able to fulfill orders out the back."
Then there's the implications for product returns. Customers could go in person to make these returns, giving Amazon more control over that aspect of reverse logistics, Courtin adds.
Moreover, if a consumer returns a product ordered online to a retail location, that gives Amazon an opportunity to "convert" the original sale to another item, Courtin notes. And the ability to make returns in person at a nearby store, rather than having to repackage and mail the item, could have additional appeal for Amazon shoppers while benefiting Amazon. "I think people would order more stuff, if returns were that easy," Courtin says.
Meanwhile, Another Amazon retail gambit to watch is the pending rollout of Treasure Trucks, which will roam cities stocked with daily deals. It's not clear when Treasure Trucks will hit the streets at scale, but the concept "falls into the whole narrative of retailers providing consumers with that contextual experience," Courtin says. "It adds a certain element of anticipation, like when the ice cream truck comes."
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