What is Amazon's Next Move?
By Nicole Franceschini
Amazon has recently bought over Whole Foods Market, and Amazon's sales numbers are already starting to rise. After Amazon's purchase, the company began to sell Whole Foods brands directly through its website while reducing the prices of products sold in the newly-acquired stores — two actions that increase Whole Foods' attractability to new customers. Amazon also set up additional features to increase sales and attract more consumers, such as Amazon Lockers, a feature on the website that allows customers to physically pick up or send back items they purchased on Amazon.com.
But what is the next move for Amazon? Amazon has been able to thrive in the food business, but its wisest move could be a large investment in retail, specifically, with its rumored purchase of Macy’s.
As a result of buying Macy’s, Amazon would be able to sell a larger quantity of clothing, expanding its selection while reaching a larger customer base. Amazon also offers Amazon Prime, two-day free shipping to a customer’s front door. This feature for free shipping applies to almost all of Amazon’s products online, which would also be major plus for online clothing shopping on Amazon.
Most consumers today wait to shop for retail online until sales with free shipping start or until promo codes for free shipping are given to customers. If these customers were able to shop Amazon Prime, they would be able to get their clothing within the next two days without having to pay extra for shipping. This one factor alone would bring in more revenue for Amazon just on the clothing front only. Nonetheless, what will Macy’s be able to give, and how will it help to truly allow Amazon to increase its sales revenue?
Because Macy's has been in business longer than Amazon, the company has formed relationships with other retail companies. From this aspect, Macy's would be able to provide Amazon with access to a wider variety of new apparel brands and also help Amazon form new relationships with these brands. Through these newly-formed relationships, there will be better opportunities to make other relationships with different retail brands that will help Amazon expand beyond Macy's in the future for their company. Macy's is just the starting platform for Amazon's start in the retail business and is a respectable company to start their long journey into retail with.
If Amazon is able to make food more affordable and easier to obtain for consumers, why isn't Amazon doing the same thing with clothing? Retail is one of the fastest growing and moving businesses today, and Amazon would be smart to buy Macy’s.