Amazon Evolves Into Offline Retail, Keeping Convenience As Its Core

Amazon Evolves Into Offline Retail, Keeping Convenience As Its Core
Delivery & Logistics

PSFK's Future of Retail 2018 report takes a look at Amazon's expansion into brick-and-mortar retail

PSFK Labs
  • 14 december 2017

Amazon has long been top-of-mind when it comes to convenience and commodities. Now the e-commerce giant is rapidly establishing its offline presence, folding Whole Foods locations across the U.S. into its ecosystem and investing in physical storefronts like Amazon Books. PSFK Labs put together a case study on Amazon supported by trends from our Future of Retail 2018 report.

By upending the purchase and delivery experience across most retail markets, Amazon has solidified its position as the industry’s digital benchmark with a market value that exceeded $450 million and $136 billion in revenue in 2016.

While continuing to perfect its convenience core, Amazon has invested in offline experiences—Treasure Trucks, Amazon Bookstores, Amazon Go and, most notably, its acquisition of Whole Foods—that help the retailer to establish a tangible relationship with shoppers that encourages them to identify with the brand. Amazon’s relationship-building initiatives are supported by effective use of existing data-collection and logistical processes, while always driving back to their core sales channel, online.

Amazon’s core drivers of success can be understood with four chief characteristics:

  • Seamless: Prime memberships reduce friction to make shopping easy, integrated and even automated
  • Brandless: With the shift to voice, the default becomes Amazon brands and preferred partners
  • Boundless: A rapidly growing commerce and fulfillment ecosystem that runs across industry and product category
  • Relentless: Constant innovations and acquisitions expand its reach and efficiency, but failures are also embraced

As it evolves into offline retail, Amazon is taking advantage of strategic partnerships and building out a library of assistive devices, while remaining true to its foundation of convenience. The company’s multi-pronged approach addresses a number of aspects of the customer experience, including:

Convenience

Amazon.com established the retailer as the top destination for convenience. Building upon that platform, Amazon Dash replenishment buttons let users order specific items with the touch of a button or automatically replenishes them when they run out. Amazon Key, launched earlier this year, facilitates in-home deliveries of products and services using a smart lock.

Access & Support

With an expansion into offline touchpoints, Amazon extends its access and support beyond delivery. The Amazon Experience allows customers to buy and return Amazon purchases at partner stores, including Kohl’sAmazon Lockers enable the delivery of orders to convenience stores, gyms and smaller retailers for those without a convenient home address.

Recognition & Personalization

The retailer is also a leader in meeting the increasing consumer desire for recognition and personalization. The Amazon Alexa AI-enabled device suite interacts with and learns from consumers in their homes, while Amazon Alexa Routines learns daily routines and schedules regular tasks and deliveries around them.

Confidence & Reinforcement

Amazon is using offline spaces and services to add confidence to the customer experience. Smart Home consultations assure customers in the process of integrating Amazon IoT devices into their homes. One feature on Amazon Echo Show offers reinforcement for consumers on their outfit selections. And in its biggest foray into brick and mortar, physical locations of Whole Foods and Amazon Books allow customers to touch and trial products before purchase.

The Future of Retail 2018 outlines how companies can transform their stores into experience centers that extend their supply chain and digital commerce platforms, creating mutual value with a focus on shopper experience. Members can download the report today or all readers can immerse themselves in the findings at our retail sessions on Jan. 17, 2018.


Lead Image: Amazon

Amazon has long been top-of-mind when it comes to convenience and commodities. Now the e-commerce giant is rapidly establishing its offline presence, folding Whole Foods locations across the U.S. into its ecosystem and investing in physical storefronts like Amazon Books. PSFK Labs put together a case study on Amazon supported by trends from our Future of Retail 2018 report.

+amazon
+Amazon Alexa
+Automotive
+e-commerce
+financial services
+future of retail 2018
+home
+IoT
+psfk labs
+retail
+Seamless Delivery
+technology
+Virtual Commerce
+whole foods

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