Amazon in the Process of Launching a Retail Store

[rdowns]

Interesting, if true. I think it's a brilliant move for them.

Amazon sources close to the situation have told us that the company is planning on rolling out a retail store in Seattle within the next few months. This project is a test to gauge the market and see if a chain of stores would be profitable. They intend on going with the small boutique route with the main emphasis on books from their growing line of Amazon Exclusives and selling their e-readers and tablets.

Seattle is where Amazon’s main headquarters is based and is known as a fairly tech savvy market. It is a perfect launch location to get some hands on experience in the retail sphere. A source has told us that they are not looking to launch a huge store with thousands of square feet. Instead they are going the boutique route and stocking the shelves with only high margin and high-end items. Their intention is to mainly hustle their entire line of Kindle e-Readers and the Kindle Fire. They also will be stocking a ton of accessories such as cases, screen protectors, and USB adapters.

The company has already contracted the design through a shell company, which is not unusual for Amazon. When Amazon releases new products to the FCC it is always done through anonymous proxy companies to avoid disclosure to their competition on what they are working on. They are doing this for the actual first store layout and design, while modeling themselves after Apple.

The store itself is not just selling tangible items like e-readers and tablets but also their books. Amazon recently started their own publishing division and has locked up many indie and prominent figures to write exclusively with the company. This has prompted their rivals such as Barnes and Noble and Books-A-Million to publicly proclaim they won’t touch Amazon’s physical books with a ten-foot pole. Amazon launching their own store will give customer a way to physically buy books and also sample ebooks via WIFI when they are in a physical location.

This is exciting news and Amazon in a great position to make a strong go out of their retail endeavors. They are starting out local and small mainly to test the waters with the new store, but also the figure out how they’re going to avoid paying massive taxes. In the last few years, there has been a huge tax debate because Amazon sells things online and only pays State taxes if they have a distribution center within a particular location. Having a physical store means the company will have to start paying more taxes and they are currently working out the logistics and tax loopholes before they launch.

We have heard that the time-frame of their first location starting up will be before the end of the year to capitalize on the lucrative holiday season. I expect it to launch soon after the Kindle Fire 2 is announced to maximize the exposure they are going to get.

 

[maflynn]

Odd, given that Barnes and Nobel is struggling because people are going online to buy books from Amazon and not going to their brick and mortar stores, yet they're thinking they can make a go of it

 

[rhett7660]

Odd, given that Barnes and Nobel is struggling because people are going online to buy books from Amazon and not going to their brick and mortar stores, yet they're thinking they can make a go of it

This is what I thought. Not saying they will fail etc, but why oh why.

 

[n8236]

I'm not sure how an Amazon store would look like besides a Costco LOL. It would be cool, I'd check it out!

 

[Rodimus Prime]

Odd, given that Barnes and Nobel is struggling because people are going online to buy books from Amazon and not going to their brick and mortar stores, yet they're thinking they can make a go of it

I find it odd they are doing this as well. States will jump on them for any place they put these stores up as for sales tax as they now have a physical location in state.

I could see it working as they are really only pushing their book stuff. It would kind of be like Apple little set up in places like Best buy. Not that big and it is not a full fled store.

 

[416049]

So it would basically be a huge book store with kindles?

 

[rdowns]

Odd, given that Barnes and Nobel is struggling because people are going online to buy books from Amazon and not going to their brick and mortar stores, yet they're thinking they can make a go of it

Take a look at the Kindle display at Target or Walmart or Best Buy. Surely that's not how Amazon wants their device marketed.

Small boutique stores, not huge boxes like B&N, would be great for them to showcase their Kindles, promote Amazon app and music store and get closer to their customer. Throw a cafe inside and you have instant traffic.

As for sales tax, it hasn't hurt Amazon in NY and we've paid tax for like 2 years.

 

[Spink10]

You already pay tax from Amazon if you live in Washington State - but I sure dont want Amazon to have a store where I live. But I LOVE Amazon - I try to buy everything from them.

 

[danahn17]

That's.... weird. Doesn't seem to make much sense to me (especially given the economy and B&M bookstore successes in general). Plus part of Amazon's appeal to me is I can place an order and get something to my door in two days (with Prime at least).

But who knows... maybe Amazon can pull it off. Afterall, everybody said that the Apple Stores were a stupid idea bound to fail and we all know how that ended up .

 

[maflynn]

Take a look at the Kindle display at Target or Walmart or Best Buy. Surely that's not how Amazon wants their device marketed.

I think there's a difference between selling kindles at your local walmart, bestbuy and selling books in a store. Just think about the distribution channel having to pay to have all the stores stock various books. Higher cost then sending boxes of kindles through the pipeline.

 

[Tinyluph]

I would love to visit an Amazon store.

 

[PlaceofDis]

I find it odd they are doing this as well. States will jump on them for any place they put these stores up as for sales tax as they now have a physical location in state.

I could see it working as they are really only pushing their book stuff. It would kind of be like Apple little set up in places like Best buy. Not that big and it is not a full fled store.

my first thought about this was that they see eventually that they will have to collect tax from everyone, and most people understand that if a retailer has a physical presence that they have to collect tax and this is one way to make things kinda easier in a roundabout manner.

other than that i can see it working for their kindles and the like, but i wonder what else besides books they'd carry since it seems contradictory.