Amazon.com Inc. said it’s introducing a feature that will let people shop for goods from within mobile applications.
Retailers beware, this can have a major impact on your business if you don’t do something smart about it.
Why? More people are going to be looking at Amazon while they are in your store. When I go shopping with my wife (don’t tell her) I spend a lot of time on my iPhone. I check my email, social media, basically biding my time and from time to time, discussing something she is looking at. I’m a guy, I get bored and ever since I got my first Cassiopeia Windows CE device, I have been reading eBooks or doing something on a handheld computer.
Living in New Zealand, a lot of retail goods are more expensive than they are in other parts of the world. Some of that is because of distance, but mostly its about (based on my significant experience in the distribution industry) a combination of middle men taking a slice out of the margin, poor decision making skills on the behalf of buyers and weak relationships with retail customers.
So what’s going to happen now is that people are going to be exposed to Amazon while they are web browsing, playing games, or whatever they are doing on their mobile smartphone in your store. Then they are going to compare your pricing with Amazon. Amazon is going to recommend things based on their interests and previous purchases and get them to bundles.
Many of them will leave your store having made a purchase, but it won’t have been from you. You will complain, but ultimately, you had them in the palm of your hand and you let them go. You could have got the sale, but you focussed on business as usual (BAU) and let Amazon disrupt your business model.
How about doing some disrupting of your own. It’s not hard, but you probably need someone from outside your business, like me, who doesn’t have preconceived ideas about your business.