6 ms·

http://www.engadget.com/2014/10/09/amazon-store-manhattan/ http://www.engadget.com/2014/10/09/amazon-store-manhattan/ Seems unnecessary. I guess Amazon is gett

http://www.engadget.com/2014/10/09/amazon-store-manhattan/ http://www.engadget.com/2014/10/09/amazon-store-manhattan/ Seems unnecessary. I guess Amazon is getting so bored making money in sane ways that they want to lose money in insane ways.

mpg33 12y ago
You mean like that phone experiment..yup.
chk 12y ago
Though I agree, it does sound insane. What would they stock? They can't supply everything obviously. I think it will be a good outreach to put a face to the company you're buying from, and make it more personal. I'm sure the employees will have little Kindles so you can quickly order things in stock. And gain the confidence from buyers that are hesitant buying things from online retailers. Potentially this could hurt stores like Best Buy, or the like. If Amazon can provide a better customer service in person, than people will choose them over the other. I'll be curious to see how this plays out for them.
- vlunkr 12y ago
  I don't think they would have too much trouble knowing what to stock, they would just look at their sales. Stock the most popular items, new releases of movies/books/games, and phones, tablets and PC's. On the other hand, that would make them nearly equivalent to any of the other "brick and mortar" businesses. I wonder if they want to focus on showcasing their own products, like an apple store. They have been pushing the advertising on amazon fire TV and phone a lot.
- Kalium 12y ago
  Why not have the stock respond to people? Amazon can probably have their stock be adaptive.
- DannyBee 12y ago
  "Though I agree, it does sound insane. What would they stock?" ???? I would expect they are only going to stock amazon stuff. Maybe amazon branded + amazonbasics. Why would they stock anything else? To me, this seems like a fairly obvious play: They have had trouble getting playing with fire branded stuff in their internet and tv-only campaigns. People actually want to play with the devices. Given the choice between buying space in best buy among tons of other companies, and leaving it to the whims of blue shirted people to sell their stuff, or doing it themselves, they chose "doing it themselves". That seems sane to me.
  - bentcorner 12y ago
    It makes sense to me too. I've never owned an Amazon device, or (I think) even touched one. I've heard middling things about them, but holding one in the hand could be enough to persuade me to pick one up.
  - chk 12y ago
    While I agree with you that it would definitely help their sales by selling it themselves vs. the blue shirts. I can't seem to think they will only sell Amazon products. Not to say they will sell substitutes of their products as well, I think it would be a missed opportunity to stock it only with Kindles, and Fire Phones. It would be surprising to me at least, if their main objective with this store front was to increase sales of their products alone. I could envision them being a big box in the future with stores around the US. They've already got a lot of warehouses to back something of that caliber up.
    - DannyBee 12y ago
      If they get into selling other people's stuff in person, they then have to compete with other people in the area on those prices, deal with support for those devices when they break. They also have to deal with all the attendant supply chain issues, etc. Supply chain for a warehouse is different than supply chain for the store. If too many people in alabama want something tomorrow that isn't in alabama warehouse, they overnight it from vegas and pay the price. If too many people show up to buy something in the store in alabama, they are simply out of stock. In one case, they make a sale and pay a little more overhead. In the other case, they probably don't make the sale. Additionally, right now their support is limited to "we click buttons, you repack stuff, and we ask UPS to take stuff back to us". The average brick and mortar store provides a lot more support than that. They already deal with a lot of this for kindle products, but not other peoples. For other people's products, I can't see them wanting to get into this business, it's a rathole, and only serves to help others more than them :) I don't think they will get into the business of selling tvs in a big box, for example, right up until best buy dies. I think they are perfectly happy with "people try stuff, then buy it on amazon", and i don't see why they wouldn't be. In short, i have trouble seeing why they would want to be a big box in the future. Their entire business model is based around the idea that being a big box is inefficient.
michaelbuckbee 12y ago
In many urban areas it can be challenging to receive packages, so having a pickup spot in the middle of several million people could well make sense. Apple's flagship Manhattan store famously does quite well as a showcase for their products and helps to sell millions for them. Amazon could be doing that math that for every user we get into the ecosystem we can extract X in lifetime value from book, video and app purchases (again a way it could make sense). Also, you can consider this maybe Amazon trying to become Walmart faster than Walmart can become Amazon. Having physical stores still counts for much in the retail sector, having one (or a bunch) would potentially give them leverage and more options. They _already_ have a massive nationwide system of warehouses and logistic centers, is it that crazy that they could move products into brick and mortar shops as well as the presumably much more complicated process of people's homes?
- minimax 12y ago
  I don't know as much about NYC geography, but if they put one of these somewhere in the loop in Chicago I would definitely use it. I would much rather spend my lunch break walking down to the Amazon pickup depot than let a package sit on my front door all day.
  - civilian 12y ago
    FYI: http://www.amazon.com/gp/feature.html?docId=1000841451 http://www.amazon.com/gp/feature.html?docId=1000841451
    - jeffgreco 12y ago
      None near my Chicago zip. Loved it in LA though.
  - timjahn 12y ago
    Doesn't having to pick up a package defeat the purpose of delivery? If I wanted to pick up packages, I'd go to stores and buy things. I don't want to go to the store though, so I pay Amazon to deliver it to me.
davidw 12y ago
Amazon makes a lot of money - but they also spend a lot. They have pretty slim margins.
smutticus 12y ago
Amazon has recorded a net loss 4 out of the last 6 quarters. Read into that what you will, but I don't think they're in any position to 'get bored making money'. http://services.corporate-ir.net/SEC/Document.Service?id=P3VybD1hSFIwY0RvdkwyRndhUzUwWlc1cmQybDZZWEprTG1OdmJTOWtiM2R1Ykc5aFpDNXdhSEEvWVdOMGFXOXVQVkJFUmlacGNHRm5aVDA1TnpFek56STNKbk4xWW5OcFpEMDFOdz09JnR5cGU9MiZmbj1BbWF6b24ucGRm http://services.corporate-ir.net/SEC/Document.Service?id=P3V...
- delecti 12y ago
  It's pretty well known that Amazon intentionally reinvests all of its profits (and then some) back into new business ventures. So perhaps it would have been more accurate to say "getting so bored expanding into new markets."
anigbrowl 12y ago
I'm not so sure. I think the future of consumer durables is showrooms with very little inventory but a huge number of things on display. If you want it right now, you pay full price, but if you want it delivered tomorrow (from your local amazon warehouse) then it's 10% off. In other words you no longer 'go to the store' because it's economically inefficient to store many units of the same thing on expensive prime real estate. Instead almost all the warehouse space of existing stores is turned into floor space and they only have 1 of each item, although they keep a small stock of consumables.

mpg33 12y ago

You mean like that phone experiment..yup.

chk 12y ago

Though I agree, it does sound insane. What would they stock? They can't supply everything obviously. I think it will be a good outreach to put a face to the company you're buying from, and make it more personal. I'm sure the employees will have little Kindles so you can quickly order things in stock. And gain the confidence from buyers that are hesitant buying things from online retailers. Potentially this could hurt stores like Best Buy, or the like. If Amazon can provide a better customer service in person, than people will choose them over the other. I'll be curious to see how this plays out for them.

vlunkr 12y ago
I don't think they would have too much trouble knowing what to stock, they would just look at their sales. Stock the most popular items, new releases of movies/books/games, and phones, tablets and PC's. On the other hand, that would make them nearly equivalent to any of the other "brick and mortar" businesses. I wonder if they want to focus on showcasing their own products, like an apple store. They have been pushing the advertising on amazon fire TV and phone a lot.
Kalium 12y ago
Why not have the stock respond to people? Amazon can probably have their stock be adaptive.
DannyBee 12y ago
"Though I agree, it does sound insane. What would they stock?" ???? I would expect they are only going to stock amazon stuff. Maybe amazon branded + amazonbasics. Why would they stock anything else? To me, this seems like a fairly obvious play: They have had trouble getting playing with fire branded stuff in their internet and tv-only campaigns. People actually want to play with the devices. Given the choice between buying space in best buy among tons of other companies, and leaving it to the whims of blue shirted people to sell their stuff, or doing it themselves, they chose "doing it themselves". That seems sane to me.
- bentcorner 12y ago
  It makes sense to me too. I've never owned an Amazon device, or (I think) even touched one. I've heard middling things about them, but holding one in the hand could be enough to persuade me to pick one up.
- chk 12y ago
  While I agree with you that it would definitely help their sales by selling it themselves vs. the blue shirts. I can't seem to think they will only sell Amazon products. Not to say they will sell substitutes of their products as well, I think it would be a missed opportunity to stock it only with Kindles, and Fire Phones. It would be surprising to me at least, if their main objective with this store front was to increase sales of their products alone. I could envision them being a big box in the future with stores around the US. They've already got a lot of warehouses to back something of that caliber up.
  - DannyBee 12y ago
    If they get into selling other people's stuff in person, they then have to compete with other people in the area on those prices, deal with support for those devices when they break. They also have to deal with all the attendant supply chain issues, etc. Supply chain for a warehouse is different than supply chain for the store. If too many people in alabama want something tomorrow that isn't in alabama warehouse, they overnight it from vegas and pay the price. If too many people show up to buy something in the store in alabama, they are simply out of stock. In one case, they make a sale and pay a little more overhead. In the other case, they probably don't make the sale. Additionally, right now their support is limited to "we click buttons, you repack stuff, and we ask UPS to take stuff back to us". The average brick and mortar store provides a lot more support than that. They already deal with a lot of this for kindle products, but not other peoples. For other people's products, I can't see them wanting to get into this business, it's a rathole, and only serves to help others more than them :) I don't think they will get into the business of selling tvs in a big box, for example, right up until best buy dies. I think they are perfectly happy with "people try stuff, then buy it on amazon", and i don't see why they wouldn't be. In short, i have trouble seeing why they would want to be a big box in the future. Their entire business model is based around the idea that being a big box is inefficient.

michaelbuckbee 12y ago

In many urban areas it can be challenging to receive packages, so having a pickup spot in the middle of several million people could well make sense. Apple's flagship Manhattan store famously does quite well as a showcase for their products and helps to sell millions for them. Amazon could be doing that math that for every user we get into the ecosystem we can extract X in lifetime value from book, video and app purchases (again a way it could make sense). Also, you can consider this maybe Amazon trying to become Walmart faster than Walmart can become Amazon. Having physical stores still counts for much in the retail sector, having one (or a bunch) would potentially give them leverage and more options. They _already_ have a massive nationwide system of warehouses and logistic centers, is it that crazy that they could move products into brick and mortar shops as well as the presumably much more complicated process of people's homes?

minimax 12y ago
I don't know as much about NYC geography, but if they put one of these somewhere in the loop in Chicago I would definitely use it. I would much rather spend my lunch break walking down to the Amazon pickup depot than let a package sit on my front door all day.
- civilian 12y ago
  FYI: http://www.amazon.com/gp/feature.html?docId=1000841451 http://www.amazon.com/gp/feature.html?docId=1000841451
  - jeffgreco 12y ago
    None near my Chicago zip. Loved it in LA though.
- timjahn 12y ago
  Doesn't having to pick up a package defeat the purpose of delivery? If I wanted to pick up packages, I'd go to stores and buy things. I don't want to go to the store though, so I pay Amazon to deliver it to me.

davidw 12y ago

Amazon makes a lot of money - but they also spend a lot. They have pretty slim margins.

smutticus 12y ago

Amazon has recorded a net loss 4 out of the last 6 quarters. Read into that what you will, but I don't think they're in any position to 'get bored making money'. http://services.corporate-ir.net/SEC/Document.Service?id=P3VybD1hSFIwY0RvdkwyRndhUzUwWlc1cmQybDZZWEprTG1OdmJTOWtiM2R1Ykc5aFpDNXdhSEEvWVdOMGFXOXVQVkJFUmlacGNHRm5aVDA1TnpFek56STNKbk4xWW5OcFpEMDFOdz09JnR5cGU9MiZmbj1BbWF6b24ucGRm http://services.corporate-ir.net/SEC/Document.Service?id=P3V...

delecti 12y ago
It's pretty well known that Amazon intentionally reinvests all of its profits (and then some) back into new business ventures. So perhaps it would have been more accurate to say "getting so bored expanding into new markets."

anigbrowl 12y ago

I'm not so sure. I think the future of consumer durables is showrooms with very little inventory but a huge number of things on display. If you want it right now, you pay full price, but if you want it delivered tomorrow (from your local amazon warehouse) then it's 10% off. In other words you no longer 'go to the store' because it's economically inefficient to store many units of the same thing on expensive prime real estate. Instead almost all the warehouse space of existing stores is turned into floor space and they only have 1 of each item, although they keep a small stock of consumables.