(Image source: The Robin Report)

 

BY EVAN THOMAS

ANCHOR JIM FLINK



You might not have to wait on Amazon shipping for much longer. Rumors are swirling that the online retail giant is looking to dip a toe off its cloud and into the brick-and-mortar domain.

Good E-Reader cites sources close to Amazon, who say the company is planning a boutique-style store for books and Amazon tablets somewhere in Seattle. The sources say Amazon wants to see if a physical location would be profitable before it commits to more stores.

CNBC worries Amazon would be straying from success with the move to actual storefronts.

“I don’t understand why this makes any sense for them whatsoever. I really don’t. Part of what’ s really worked for Amazon is everything that they are, which is an e-retailer. So why do they want to get into the bricks and mortar? It doesn’t make sense to me.”

It’s a paradox, according to ReadWriteWeb. Physical stores might be the perfect way to get consumers familiar with Amazon’s digital content model.

“Devices are not Amazon's core business; content is. Kindles are sold at a loss, and Amazon makes the money back on books, movies, apps and other media. The Kindle is a delivery mechanism, and putting the devices in stores would give customers a chance to try out the interface.”

Gawker suggests it’s the logical next step in commercial content domination.

“...now the company is becoming even more of an end to end giant, developing, editing, packaging, publishing, distributing, e-distributing, printing, electronically selling, electronically presenting and now perhaps physically selling books. Even Apple doesn't go that vertical...”

But GigaOM points out -- Amazon’s margins are already pretty slim. Even if the store is a hit, the company will be facing an uphill profit battle.

“Opening stores may be tough when shareholders and analysts want more profits and may not see much return on this investment — Amazon offered guidance on a possible loss in the coming quarter.”

And, as CNET says, Amazon won’t be helped by another inevitable cost of physical stores -- sales tax.

“...word is that Amazon is increasingly resigned to a future where it will have to collect state taxes, so why not look toward putting more warehouse (or stores) on the ground near major metro areas? Or so the speculation goes.”

What those stores will look like when they’re done is still a mystery -- Amazon isn’t saying who it’s working with on design and layout.
 

 

 

Tech News: Amazon Mulling Brick-and-Mortar Stores

Amazon Mulling Brick-and-Mortar Stores

February 7, 2012
(2:20)
Amazon is said to be considering physical retail locations for books and its Kindle line.
   
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