Amazon 's First Brick And Mortar Store

1084 Words Jun 8th, 2016 5 Pages
Figure 2.1—Marketing mix

2.1 Product
Nick Wingfield writes that Amazon can improve physical retail through their “data-centric approach to online retailing” (Alter, A. and Wingfield, N., 2016). Amazon’s first brick-and-mortar store differs from traditional independent bookstores. Amazon has forsaken the “charm of a funky used bookstore” in favour of a “clean…well-lit and corporate” atmosphere (Alter, A. and Wingfield, N., 2016). The store is small and has a limited selection of 5,000 books, “a tiny percentage of what most independent booksellers would carry” (Vuong, 2016). All titles are face-out (rather than spine-out) and each carries “a review card with the customer rating and a review” (Amazon, 2016).

There is debate over the effectiveness of these choices. “What I felt when I was in that store was, ‘Here’s your 5,000 titles, the only titles that you need. They’re stocked 10 deep, and our algorithms know exactly what books you need’,” writes Jean Risko (Vuong, 2016). The store’s corporate atmosphere is more like an Apple store than a traditional bookstore. While this alienates some consumers, it ties in with an important function of the store: promoting Amazon’s electronics.

2.2 Promotion
Amazon has 35 product categories and sells around 200 million individual items (Elgan, 2016). Their move into physical retail is seen by many as a way of advertising these other items, through three strategies—giving their brand visibility, promoting titles published by…
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