In many urban areas it can be challenging to receive packages, so having a pickup spot in the middle of several million people could well make sense.
Apple's flagship Manhattan store famously does quite well as a showcase for their products and helps to sell millions for them. Amazon could be doing that math that for every user we get into the ecosystem we can extract X in lifetime value from book, video and app purchases (again a way it could make sense).
Also, you can consider this maybe Amazon trying to become Walmart faster than Walmart can become Amazon. Having physical stores still counts for much in the retail sector, having one (or a bunch) would potentially give them leverage and more options. They _already_ have a massive nationwide system of warehouses and logistic centers, is it that crazy that they could move products into brick and mortar shops as well as the presumably much more complicated process of people's homes?
No it doesn't, you're not going to use some of the world's most expensive real estate for a pickup counter. That's the point of Amazon lockers in 7-11 stores and so on, you don't want to make people go outside of their neighborhood just to pick up a delivery. In a dense urban area that means within a few blocks.
I don't know as much about NYC geography, but if they put one of these somewhere in the loop in Chicago I would definitely use it. I would much rather spend my lunch break walking down to the Amazon pickup depot than let a package sit on my front door all day.
Another Chicagoan here, I'm actually the exact opposite. I'd much rather have my package sitting in the lobby of my apartment than going down to Michigan Ave, dealing with a bunch of tourists, and waiting in line to pick up, idk, a big box of paper towels because I'm too lazy to go to the grocery store?
I live in a 3 flat and most of my Amazon packages sit just outside our building in plain sight. If the UPS guy had the skeleton key that the USPS has, I'd probably feel differently.
Many of the things I buy on Amazon I buy because I can't find them at all in local stores. Sometimes they are just cheaper too, but that really is why I would use a local Amazon store. I wonder if this will also make some things like pet food which aren't really suited to ecommerce more viable for them. Maybe they wouldn't offer vastly cheaper shipping if you want any brand but would stock some staples like that too.
Well sure...if you can find a store that stocks every item that Amazon has, has no lines, doesn't require searching for the physical product on their shelves (this is of course replaced by Amazon.com's search fxn at time of purchase). You surely can't be serious in saying that there's no advantages to conveniently located Amazon package pickup over a conveniently located store...
I make use of in-store pickup options from time to time - sometimes it's nice to get your hands on your order the same day - order it at 7pm, have it by 8pm.
What it comes down to for me is, I don't hate going to the store, I hate shopping at the store. Typing "16GB USB Drive" into the search box is much easier than wandering down multiple aisles trying to figure out whether that particular store put the USB sticks with the laptop accessories, the camera storage, the office supplies, on some unrelated endcap, or behind the guy standing inconveniently in front of the display I'm trying to look at.
But what if you've got a parcel machine on your regular route ?
And don't forget, the costs can be much lower when using parcel machines. For example in latvia ,it costs 2 euro to send a package from a postal machine to a postal machine, versus 3.6 euro from a postal machine to someone via courier.
And e-commerce users really hate to pay for shipping.
Based on store counts times conservative numbers on the total cost of a new Wal-Mart. They might try building a bunch of small stores, but they're definitely not going to try to become Wal-Mart.
They want to skate to where the puck is going to be, not to where it is. We can be certain that the Walmart of ten years from now will not be identical to the Walmart of today. Part of that difference will be Walmart's reactions to Amazon's own actions, but mostly it will be changed consumer expectations. Do you enjoy shopping for toiletries and similar consumables?
Apple's flagship Manhattan store famously does quite well as a showcase for their products and helps to sell millions for them. Amazon could be doing that math that for every user we get into the ecosystem we can extract X in lifetime value from book, video and app purchases (again a way it could make sense).
Also, you can consider this maybe Amazon trying to become Walmart faster than Walmart can become Amazon. Having physical stores still counts for much in the retail sector, having one (or a bunch) would potentially give them leverage and more options. They _already_ have a massive nationwide system of warehouses and logistic centers, is it that crazy that they could move products into brick and mortar shops as well as the presumably much more complicated process of people's homes?