The Times Online have the scoop on the big news that Amazon is secretly planning high street shops in the UK -
Property landlords said that the American company, which has a market value of $59.1 billion (£35.6 billion), had launched a secret search for bricks-and-mortar stores to support its rapidly growing website.
The reason Times Online list for Amazon’s interest in brick and mortar stores is to meet customers’ demand for click and collect services.
Initially I thought it might have to do with Kindle UK – However, the article makes a very strong case that the real reason is to get over problems with deliveries, especially of larger items.
Argos has been careless enough to bandy about the success of its click and collect service -
Argos said that 18% of its internet sales are items bought on the web and collected in-store. In the run-up to Christmas it predicts 50% of its television sales will be bought this way. Tesco and John Lewis offer similar services
Amazon probably feel that with big-ticket items like Televisions and Computers it makes sense to let people pick it up from stores rather than do the dance with courier services or Royal Mail.
It would be quite a coincidence if Amazon ending up taking over some or all of the current Borders UK locations.
Amazon same day delivery and expanding Amazon across the retail spectrum
Amazon have recently started offering same day delivery in a number of US cities, including Seattle, and opening up Click and Collect Stores would be a logical next step.
Amazon probably loses some amount of sales, especially of impulse buys, because people don’t want to wait a few days (or even a day).
- The same day delivery addresses this.
- The click and collect stores would address it even better.
As WalMart begins to put more effort into its online initiatives Amazon might start putting more effort into physical locations.
Does this mean anything for Kindle UK? Will Kindle UK be cross-sold here?
It would make a ton of sense for Amazon UK to cross-sell the Kindle in its UK brick and mortar shops.
- It exposes the Kindle to a ton of people.
- Amazon.com and Amazon.co.uk are 2 of the top 5 most trusted UK retailers – there would be a lot of people coming into Amazon Collection Stores.
- People in the stores are a captive audience - might as well let them interact with the Kindle.
- It’s instant gratification – For a $259 item like the Kindle it benefits Amazon to let people make an impulse purchase.
Barnes and Noble are pushing the Nook + B&N Store angle. If Amazon want to test it out themselves the UK is as good a country as any.
A way to combat misinformation
Perhaps the biggest advantage of having Kindle UK in physical locations is that Amazon can fight the misinformation that is being spread i.e.
- eInk screen hurts your eyes.
- You can’t buy books from any other store.
- Battery Life isn’t good.
- It’s not worth the money.
- eBook prices are really high.
Seeing is believing and having millions of people a month get to play with the Kindle in person is the best way to show the UK that the Kindle works for them.
If physical Amazon click and collect stores work in the UK look for Amazon to expand the idea to the US (probably with included Kindle booths).
Filed under: kindle international Tagged: | kindle uk
