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This is not (only) about putting local retailers out of business; it's about conquering consumer's wallet. In fact it'd be better for them if (most) of Amazon L
by guiambros 12y ago
This is not (only) about putting local retailers out of business; it's about conquering consumer's wallet. In fact it'd be better for them if (most) of Amazon Local users do not go out of business.
Having access to consumer spend outside their platform would give Amazon an incredible leverage. They'd be able to understand where else you're spending your money, which would allow all sorts of revenue streams: up-selling, cross-selling, Amazon Deals, advertising revenue, selling the raw data to data management platforms (e.g., BluaKai).
They already do something similar with Amazon Payments, but it's mostly for online merchants. This can go much further, even to industries that they have no interest in entering. If you're paying a plumber or a painter, you may be interested in decoration. If you're buying a bicycle, you may need a helmet. Buy some baby clothes, and you may be expecting, and the perfect target for Amazon Mom (I hate this name; why not Amazon Baby, or Amazon Parents?).
And let's not forget about the revenue coming from selling your data and your cookies, which they already do with advertising partners. While banks and card issuers have been doing this for decades, they are typically clueless about how to reach to consumers other than via direct mail, or co-branded email catalogs. And matching PII and databases is something that the FTC doesn't like much.
It's brilliant move for them.