Amazon 's First Brick And Mortar Store

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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
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Traditional brick-and-mortar bookstores refuse to stock titles published by Amazon (Vuong, 2016). Placement in a physical store increases a title’s visibility, attracting more customers. Amazon is unable to offer this benefit. By opening its own stores, Amazon can promote titles published by CreateSpace and generate revenue for its authors, thereby attracting bigger-name authors to their platforms (Elgan, 2016).

In the past, Amazon has encouraged customers to use brick-and-mortar bookstores as showrooms—physical locations where you interact with a product before buying it at Industry insiders now speculate that Amazon’s physical stores are intended as showrooms for Amazon’s other products, particularly their technology. “Electronics…are the nucleus of the store” (Alter, A. and Wingfield, N., 2016), and the stores provide a way for Amazon to introduce their technology to the public: “Techies might be comfortable buying a device like the Echo online…but a lot of people will want to see it in the flesh first” (Alter, A. and Wingfield, N., 2016). Amazon can promote their entire range through a brick-and-mortar bookstore, generating an increased market share for their other products.

2.3 Place
The placement of Amazon brick-and-mortar stores allows them to target a specific market. Amazon’s existing store in Seattle and their planned second store in San Diego are placed near major universities, indicating that Amazon is targeting
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