By the end of 2020, Amazon is predicted to have several deals in the works to acquire stores from struggling retailers so they can offer more omnichannel fulfillment services.
When the pandemic first broke out, Amazon struggled to deliver prime orders in its typical one or two-day windows. The tech giant prioritized delivering essential products and had to adjust their supply chain, but they still ran into logistical issues, such as unprecedented costs, returns and more.
Buying into brick-and-mortar real estate will allow the e-commerce retailer to further enhance their omnichannel capabilities and offer options such as curbside pickup. Doing so will also create less frictions when it comes to e-commerce shopping.
Although Amazon has been experimenting in the physical world recently, their lack of brick-and-mortar footprint has let their competitors be one step ahead. Consumers have been relying on other retailers who can offer in-store and same-day pickup options. However, with several retail closings due to bankruptcy, Amazon can take advantage of this to open more of their own facilities.
By using the empty real estate, Amazon will be able to re-establish themself as a leading retailer. Acquiring stores will let Amazon take their omnichannel capabilities to the next level and fulfill their orders more quickly. This brings a significant opportunity for Amazon to maximize their in-store potential to drive traffic and sales even further.
Source: 18 Big Tech Predictions for the Second Half of 2020 – Business Insider
Photo Credit: Amazon Media Assets
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