Daily Management Review

Amazon to conquer offline trading


10/17/2016


Amazon has applied for permission to build a large will call center in Seattle, and two more - in the state of California. According to documents, buyers in Seattle will be able drive into the complex, park, get goods pre-ordered from the online store and leave. All this should take no more than 15 minutes. Time interval will have to be planned in advance.



Silus Grok
Silus Grok
Perhaps, Amazon’s centers will be equipped with a system of reading license plates to speed up serving of orders.

Construction of Amazon’s new center of in Seattle, judging by the ongoing works there, is nearing completion. Two objects in California are yet to obtain permits.

Having built a multibillion-dollar on-line business, often through the sale of goods at lower than traditional retail prices, Amazon began to slowly try its hand in the offline sector. Last year, the company opened a bookstore in Seattle, and plans to open at least three other in the coming months.

Will call centers for customers in cars is a new trend of Amazon’s growing investments in the "last mile" logistics, i.e. delivery of the goods as close to customers as possible. The company has already built several urban distribution centers for its Prime Now service to deliver goods within an hour. In addition, Amazon is experimenting with drones, and is actively developing other services.

Service for food delivery Amazon Fresh is also developing rapidly. It is available in eight cities, including London. Food delivery, which apparently will mainly work thorough the West Coast of the USA, will be one of the most important areas of Amazon in the coming years, says an analyst of Cowen and Company.

"In the future, it will become the largest potential source of revenue growth for the company", - he wrote in a report. The most likely buyers of products online can become users of Amazon Prime, says the analyst: "Amazon has rushed to the US food and beverage market, hoping to get a larger share of household spending."

Amazon declined to comment.

source: ft.com






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