Dive Brief:
- A key component for Amazon's e-commerce growth strategy, and for others who want to gain market share, is by articulating a sound long-term growth strategy, which has helped Amazon in particular avoid the trappings of the Wall Street earnings cycle, according to Ben Conwell, former director of North American real estate for Amazon, in a Bisnow report.
- Areas where companies can challenge Amazon are buy online, pick-up in store (BOPIS), as long as the retailer in question can deliver a truly effective experience. Home delivery is another option, though one that requires effective 3PL providers to manage the experience.
- As traditional retailers add omnichannel options and shutter failing stores, thriving e-commerce sellers such as Warby Parker and Bonobos are moving into existing sites to reach more consumers.
Dive Insight:
Brick and mortar retailers are struggling to balance e-commerce with existing space. With stores by Gordmans, Gander Mountain, Sears and J.C. Penney closing due to bankruptcy or falling sales, significant retail space is becoming available.
Surprisingly, that's a good thing for Amazon, which is increasingly leasing landlocked locations. Now offering bookstores, groceries and campus delivery spots, the e-commerce giant is extending itself into more traditional sales outlets, and moving, as usual, in the opposite direction from most other retailers. Books are stacked differently and prices are listed via app. Grocery items are scanned and billed directly.
What's behind Amazon's relentless differentiation? How does it manage risk so successfully? In short, Wall Street trusts in their long-term strategy, no matter the recent quarter's results, as happened last month, when fourth quarter sales fell short. Despite a slight stock price decline, the company still retained its "Buy" rating.
