E-Commerce Giant Amazon Open Shop Profitability Geometry

Amazon will open its first retail store, selling its own brand and supporting services such as distribution and return.

Although this is the first step in the development of Amazon, the industry believes that it may not be able to contribute to Amazon's profitability.

Site selection Downtown

The first entity store was selected in the busy thirty-fourth District of Manhattan district. The flagship store of Messi store is located on the same street. The famous The Empire State Building in the United States is sandwiched between 34 street and 33 Avenue.

The crowded location of this business atmosphere reveals the Amazon's ambition to attack the real market.

According to people familiar with the matter, Amazon's physical store is equivalent to a small warehouse, the main purpose is to support the New York day, return and order extraction services.

The store, which is expected to open in the Christmas season, will involve the sale of Amazon's own products. Kindle, Fire smart phones and set-top boxes have the opportunity to enter the store.

It is worth noting that other stores will also see the expansion of Amazon stores in New York.

But Amazon did not comment on all plans for the store.

Homeopathic needs

In fact, in recent years, Amazon CEO Geoff Bezos has been fighting the idea of real business. In 2012, Amazon launched solid storage cabinets and opened Pop-Up Shop in shopping malls, although the number of these stores is very few.

Double track progressive

It has been seen as the trend of the times.

Some analysts believe that linking physical stores with the Internet is a sustainable long-term profitable way, which will give consumers more shopping options.

In the US, Amazon is not the first e-commerce provider to open a physical store.

Men's business Bonobos has been successful in the offline market.

In China, SF's shop and jumei.com's experience store have already been laid out.

Although it is a homeopathic move, it is debatable whether a physical store can bring rewards to it.

There are people in the industry who say that Apple stores attract a lot of customers, but that doesn't mean Amazon can do that.

Because Amazon's products are not as popular as apple.

Amazon, which dominates online, has no monopoly in the physical store.

From the point of view of physical retailing, famous retail entities such as WAL-MART, Taghit, home depot and IKEA are all taking advantage of traditional channels.

Especially from the sale of offline electronic products, apple and Google also become Amazon's competitors.

On the day of the day, retailers such as Google and Messi department store have been pilot operations in the US. Messi's department store has established the whole channel strategy as one of the three main business directions of the company. Besides the day, there are also online and offline picking services.

Under the siege of many physical retailers and Internet giants, Amazon must use physical stores to strengthen distribution services.

Some analysts pointed out that although Amazon's offline stores are not mainly for retail, there is still a squeeze on the survival space of small businesses.

Strong competitors such as WAL-MART will take advantage of their strengths to channel the full channel strategy, bringing crisis to small and medium-sized retail businesses that are struggling to survive.

At the same time, they may also face the greater threat of the global retail giant Amazon in the future.