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"And whether cutting out the variable costs of a cashier etc is really worth the trouble in R&D and systems." No, it is not worth it... for a retailer. This is
by canes123456 9y ago
"And whether cutting out the variable costs of a cashier etc is really worth the trouble in R&D and systems."
No, it is not worth it... for a retailer. This is what makes it an effective moat. Fast forward 10 years and Amazon will have a cost advantage over all the other retailers. Amazon store's can be open 24 hours without any extra costs. They can be much smaller or hold items that are less profitable.This will eventually pay for the moat but it will take a very long time. Longer than most companies are willing to wait for it to pay off. Amazon will also you the tech in more ways than just these stores.
- raisedbyninjas 9y ago"Fast forward 10 years and Amazon will have a cost advantage over all the other retailers." Once this happens, then Amazon can sell every retailer Amazon Retail Services the same way that it sells AWS. Maybe they can even be deployed via shipping containers on demand. State fairs, festivals, summertime around lakes, disaster recovery areas all have a spike of consumers that is limited by where retail storefronts are already in place and mobile facilities like food trucks.
- canes123456 9y agoI don't think so. They want to be the only middleman. Suppliers can buy shelf space in Amazon stores but I don't think they will help retailers. They want to make a small percentage of every sale.