Amazon has opened another physical store. Will this have an impact on the sellers on the platform?

It is learned that according to foreign media reports, on May 25, Amazon's first physical clothing store, Amazon Style, opened in California, USA. The store currently sells fashion brands such as Levi's, Tommy Hilfiger, Champion, Calvin Klein, etc., and it is expected to attract more brands in the future.

▲ The picture comes from the Internet

In fact, this is not the first time Amazon has invested in the physical retail industry. As early as 2015, Amazon opened its first physical bookstore; in 2018, it opened Amazon 4-Star; its grocery delivery service Amazon Fresh also established a physical store in 2020; and in recent years there has been the unmanned convenience store Amazon Go.

But overall, the above physical stores have not been effective, and can even be said to have failed. In March this year, Amazon announced the closure of 68 physical stores, including bookstores, Amazon 4-Star and pop-up stores, and said it would focus on the operation of grocery stores and clothing stores .

▲ The picture comes from the Internet

At a time when almost all physical stores in the clothing industry are turning to online sales, why does Amazon go against the general environment and continue to choose to open physical clothing stores?

A new model brought by Amazon Style

1. Fully intelligent equipment makes shopping more convenient

2. Customer data analysis and targeted marketing

3. Combining online and offline services to provide perfect services

In order to better complement online shopping, Amazon Style also allows consumers to select the products they want to try on the app in advance , and notify customers after the products are delivered to the physical store, effectively reducing the return rate of online shopping. Conversely, if customers try on satisfactory products in the physical store, they can also choose to buy them on the online platform to use specific discounts.

▲ Picture from marie claire

Unlike Amazon's previous physical stores, Amazon Style is more closely linked to the online platform, which is likely to have an impact on sellers selling similar products on Amazon's online platform.

The impact of interactive functions on platform sellers

Benefits: It is helpful to promote the brand

Disadvantage: It is more difficult for small and medium-sized sellers to compete with big brands