There is collective head-scratching across the InterWebs about a Wall Street Journal report that Amazon will open as many as 300, or even 400, stores selling books. The company’s massive success selling ebooks and the cost and selection advantages of warehousing their physical counterparts make the concept seem nonsensical. I contend that it’s brilliant.
Amazon is in process of expanding online services into the purview of local retail, which biggest competitive advantage is immediacy. In conjunction with the $99-per-year Prime program, the online retailer offers faster shipping; same day, and within hours, in some locales. The company increasingly contracts its own carriers, as well. Immediacy requires presence. What better location than a bookstore that also warehouses other goods and provides customer service operations? That’s all without considering the branding opportunities, which, as Apple Store demonstrates, can be huge.