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Amazon opens first bricks-and-mortar bookstore

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Re: Amazon opens first bricks-and-mortar bookstore

#4
Interesting what they might be able to do here with their geo data... University Village is a high-end shopping center with a lot of high-income traffic. The way they're stocking the shelves - covers facing out - combined with the convenience of strolling down from the big Starbucks to the store to grab the latest just might work for this clientele.

Not to mention the chance to get more Kindles into the hands of folks with low price sensitivity...

Re: Amazon opens first bricks-and-mortar bookstore

#5

I'm very curious what Amazon is trying to do here. Can the business plan pencil out by selling enough additional goods to pay the store's operating expenses? Is the real goal to expose more people to the Kindle who wouldn't otherwise see one, i.e. it's a Trojan?

This might be more a customer acquisition strategy rather than trying to run the store profitably. As another comment pointed out, Amazon must have data regarding literary interests of people around every geographic location. This can be put to use here.

Re: Amazon opens first bricks-and-mortar bookstore

#6

I'm very curious what Amazon is trying to do here. Can the business plan pencil out by selling enough additional goods to pay the store's operating expenses? Is the real goal to expose more people to the Kindle who wouldn't otherwise see one, i.e. it's a Trojan?

This might be more a customer acquisition strategy rather than trying to run the store profitably. As another comment pointed out, Amazon must have data regarding literary interests of people around every geographic location. This can be put to use here.

Also the location is right next to the University of Washington, maybe that's also a factor

Re: Amazon opens first bricks-and-mortar bookstore

#8

I'm very curious what Amazon is trying to do here. Can the business plan pencil out by selling enough additional goods to pay the store's operating expenses? Is the real goal to expose more people to the Kindle who wouldn't otherwise see one, i.e. it's a Trojan?

I don't see any reason not to take what they say at face value:

> “Our goal is to do a great job selling lots of books,” Cast said.

> “We’re completely focused on this bookstore,” Cast said. “We hope this is not our only one. But we’ll see."

They could end up operating a very profitable chain of bookstores, and they have quite a few competitive advantages that might let them do just that.

Re: Amazon opens first bricks-and-mortar bookstore

#10

I'm very curious what Amazon is trying to do here. Can the business plan pencil out by selling enough additional goods to pay the store's operating expenses? Is the real goal to expose more people to the Kindle who wouldn't otherwise see one, i.e. it's a Trojan?

Where I live book shops have tended to become more like gift shops. They sell something that is an expensive luxury that you buy because it is a nice thing. Amazon have a huge advantage in this by giving the buyer an assurance that the present will be well received. You can buy a book for a 5 year old relative without knowing what a typical 5 year old actually likes.

This could easily extend to none-book purchases (probably the end goal). There are lots of products that are a little obscure that you don't find in physical shop but have high ratings.

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