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SAN FRANCISCO, CA – OCTOBER 15: Jeff Bezos speaks at the WIRED Summit 25: WIRED celebrates its 25th anniversary with technology icons of the past and the future on October 15, 2018 in San Francisco, California. (Photo by Matt Winkelmeyer / Getty Images for
Getty Images for WIRED25
Amazon Prime Day starts on Monday, July 16th and, even if it seems harmless on the surface and maybe even a little makeup, Prime Day could be for the CEO of Amazon, Jeff Bezos, what the nuclear bomb was for Harry S. Truman. & Nbsp;
It could be a finite game, a comrade of control, or, as Seinfeld said, the coup de grace of many retailers. & Nbsp;
In his hands, Bezos, through Prime Day, holds the ultimate force weapon that, if released, could turn all other retailers into a self-shell. If ever Amazon decided to fully exploit the potential of Prime Day by scheduling Prime Day events to be absolutely on the 1st and 15th of every month, on widescreen TVs and sophisticated electronic devices, but also on non-promotional items. discretionary. Amazon could forever change the course of retail history in much the same way as Walmart, Target, Costco, et al. would be powerless to stop.
None of these answers is hyperbole either. Here are three reasons why an Amazon Prime Day every month would be another step forward in Amazon's 21st century business strategy:
# 1) The American consumer would like
The American consumer already loves Amazon. The latest reports are only about 101 million Americans have a main subscription. That's about a third of the American population. They are not just consumers but the whole population!
Amazon is as deeply rooted in American life as apple pie.
The other indisputable fact is that the the divide between the rich and the poor in America continues to grow. More and more people are struggling to make ends meet and live from one paycheck to the next. The first and fifteenth day of the month that US consumers could count on, wait and supply would probably be an event that Americans would welcome with open arms, as it would mean that citizens could stretch their budget further than never before.
Prime Day should take a different view of what the consumer generally badociates with the Black Friday agreements on electronic products and make greater use of on-reserve purchases, such as in grocery stores or at Costco, but for consumers who depend on their purchases. paychecks to survive, this change of direction would be worth it.
In terms of public relations, that would also work very well. It is really difficult to find fault with such an altruistic strategy. Amazon could then tell politicians: "Monopoly power? Can you repeat it anyway? We are reducing our prices well below the competition twice a month. This is not a clbadic definition of monopoly that we have ever seen. But of course, go ahead and ask America to pay more. "
# 2) Prime is the ultimate badet
Prime, combined with Amazon's e-commerce logistics benefits, is Amazon's best badet. No other retailer has the same combination of benefits as Amazon. No retailer, regardless of size or scale, has an affiliate program outside of Costco, and Costco can not touch Amazon either in terms of running its business.
Prime offers Amazon the opportunity to make Prime Day each month a reality. Just last week, United States today discussed how registering for an annual premium subscription of $ 119 is worth it for a single day of Prime Day discount!
The calculation becomes even more interesting with a bit of sensitivity badysis.
If Premium membership is worth a day a year, what would be willing to spend 100 million Americans to become twice a month? 100 dollars more? 200 dollars? Make the $ 500 cool subscription a year? No matter how you cut it, it's about $ 10 billion, $ 20 billion, and $ 40 billion of additional cash flow per subscription each year for Amazon to fuel American consumerism.
The concept should not even be for everyone. It could be an idea that people subscribe to, just like the current mode of operation of Premium members. In any case, the above types of figures would allow Amazon to pay a ton of discount and shipping costs extra.
# 3) Brick retailer and former homeowner badets are too old
Amazon giving up Prime Day every month, it's as if Jeff Bezos was donning parachute pants and preparing his competition with his solo performance. U can not touch that because Amazon probably knows that Walmart and all the others have no chance in the world to compete with this idea.
Seriously, what should the biggest American retailer, Walmart, do? Do you rely on its network of stores or put incredible discounts online and face? Let's go there!
Already Amazon wins first product searches Walmart's online e-commerce experience is far from comparable to Amazon's and its logistics capabilities. Walmart and others may be trying to compete directly with store discounts, but consumers are becoming more digital every day, so this strategy will be less effective over time and will significantly degrade margins without a subsidy. Prime type. to withdraw. Go in the opposite direction and push the competition on e-commerce. Walmart and others would end up cannibalizing in search of even lower profits than in stores too, which would provoke Wall Street's anger.
The situation as a whole would not be very different from that prevailing when Walmart suspended its daily low price practices prior to the birth of Amazon. Retailers like Kmart and others tried to compete with Walmart at the lowest prices, but they ended up losing because Walmart had too many advantages in terms of store location and logistics prowess.
Every day, Prime Day is basically the same concept: it has just been modernized to reflect the behavior of 21st century consumers and is subsidized by the very consumers it serves through Prime itself. You must give Amazon credit. They managed to increase Walmart's price by understanding Costco's intrinsic hook and the ever-increasing value of convenience.
The implications
Look in the mirror, based on the slightest semblance of what is described above, and the future retail landscape will become clear.
Retailers who gave no reason to get out of bed and venture into their stores, that is, department stores and mid-sized specialty retailers, have disappeared.
No more regional grocery stores that do not have the financial capacity to compete on the size and scale of how 100 million Prime members can talk about US portfolios.
Big box retailers and warehouse clubs are trying to compete with Amazon but do not realize and never realize that their value lies in reinventing their physical experiences through technology, architecture and design. human experiences. me too digital experiences and realization Amazon will always dominate.
What remains is simply a feudal retail system. One where those still exist exist only to serve Amazon, such as Kohl's statements taking Amazon, for example. Taking returns is not really a growth strategy, but an early indicator of a future world where retailers who will remain will look more like serfs working under a feudal lord, working hard and paying homage by doing this. that Amazon does not want or want. need to do it, if only to survive on the remaining table remnants of retail.
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SAN FRANCISCO, CA – OCTOBER 15: Jeff Bezos speaks at the WIRED Summit 25: WIRED celebrates its 25th anniversary with technology icons of the past and the future on October 15, 2018 in San Francisco, California. (Photo by Matt Winkelmeyer / Getty Images for
Getty Images for WIRED25
Amazon Prime Day starts on Monday, July 16th and, even if it seems harmless on the surface and maybe even a little makeup, Prime Day could be for the CEO of Amazon, Jeff Bezos, what the nuclear bomb was for Harry S. Truman.
It could be a finite game, a failure, or, as Seinfeld said, the coup de grace of many retailers.
In his hands, Bezos, through Prime Day, holds the ultimate force weapon that, if released, could turn all other retailers into a self-shell. If ever Amazon decided to fully exploit the potential of Prime Day by scheduling Prime Day events to be absolutely on the 1st and 15th of every month, on widescreen TVs and sophisticated electronic devices, but also on non-promotional items. discretionary. Amazon could forever change the course of retail history in much the same way as Walmart, Target, Costco, et al. would be powerless to stop.
None of these answers is hyperbole either. Here are three reasons why an Amazon Prime Day every month would be another step forward in Amazon's 21st century business strategy:
# 1) The American consumer would like
The American consumer already loves Amazon. The latest reports state more than 101 million Americans with a master subscription. That's about a third of the American population. They are not just consumers but the whole population!
Amazon is as deeply rooted in American life as apple pie.
The other indisputable fact is that the gap between the rich and the poor in America continues to widen. More and more people are struggling to make ends meet and live from one paycheck to the next. The first and fifteenth day of the month that US consumers could count on, wait and supply would probably be an event that Americans would welcome with open arms, as it would mean that citizens could stretch their budget further than never before.
Prime Day should take a different view of what the consumer generally badociates with the Black Friday agreements on electronic products and make greater use of on-reserve purchases, such as in grocery stores or at Costco, but for consumers who depend on their purchases. paychecks to survive, this change of direction would be worth it.
Regarding public relations, it would also play very well It is really difficult to find fault with such an altruistic strategy. Amazon could then tell politicians: "Monopoly power? Can you repeat it anyway? We are reducing our prices well below the competition twice a month. This is not a clbadic definition of monopoly that we have ever seen. But of course, go ahead and ask America to pay more. "
# 2) Prime is the ultimate badet
Prime, combined with Amazon's e-commerce logistics benefits, is Amazon's best badet. No other retailer has the same combination of benefits as Amazon. No retailer, regardless of size or scale, has an affiliate program outside of Costco, and Costco can not touch Amazon either in terms of running its business.
Prime offers Amazon the opportunity to make Prime Day each month a reality. Just last week, USA Today explained just how rewarding it is to sign up for an annual $ 119 Premium Membership, if only for a single day of Prime Day!
The calculation becomes even more interesting with a bit of sensitivity badysis.
If Premium membership is worth a day a year, what would be willing to spend 100 million Americans to become twice a month? 100 dollars more? 200 dollars? Make the $ 500 cool subscription a year? No matter how you cut it, it's about $ 10 billion, $ 20 billion, and $ 40 billion of additional cash flow per subscription each year for Amazon to fuel American consumerism.
The concept should not even be for everyone. It could be an idea that people subscribe to, just like the current mode of operation of Premium members. In any case, the above types of figures would allow Amazon to pay a ton of discount and shipping costs extra.
# 3) The strengths of mortar and mortar retailers are out of date
Amazon giving up Prime Day every month, it's as if Jeff Bezos was donning parachute pants and preparing his competition with his solo performance. U can not touch that because Amazon probably knows that Walmart and all the others have no chance in the world to compete with this idea.
Seriously, what should the biggest American retailer, Walmart, do? Do you rely on its network of stores or put incredible discounts online and face? Let's go there!
Amazon is already winning its first product searches considerably on all others, and Walmart's e-commerce experience in e-commerce is far from unbeatable with its logistical capabilities. Walmart and others may be trying to compete directly with store discounts, but consumers are becoming more digital every day, so this strategy will be less effective over time and will significantly degrade margins without a subsidy. Prime type. to withdraw. Go in the opposite direction and push the competition on e-commerce. Walmart and others would end up cannibalizing in search of even lower profits than in stores too, which would provoke Wall Street's anger.
The situation as a whole would not be very different from that prevailing when Walmart suspended its daily low price practices prior to the birth of Amazon. Retailers like Kmart and others tried to compete with Walmart at the lowest prices, but they ended up losing because Walmart had too many advantages in terms of store location and logistics prowess.
Every day, Prime Day is basically the same concept: it has just been modernized to reflect the behavior of 21st century consumers and is subsidized by the very consumers it serves through Prime itself. You must give Amazon credit. They managed to increase Walmart's price by understanding Costco's intrinsic hook and the ever-increasing value of convenience.
The implications
Look in the mirror, based on the slightest semblance of what is described above, and the future retail landscape will become clear.
Retailers who gave no reason to get out of bed and venture into their stores, that is, department stores and mid-sized specialty retailers, have disappeared.
No more regional grocery stores that do not have the financial capacity to compete on the size and scale of how 100 million Prime members can talk about US portfolios.
Big box retailers and warehouse clubs are trying to compete with Amazon but do not realize and never realize that their value lies in reinventing their physical experiences through technology, architecture and design. human experiences. me too digital experiences and realization Amazon will always dominate.
What remains is simply a feudal retail system. One where those still exist exist only to serve Amazon, such as Kohl's statements taking Amazon, for example. Taking returns is not really a growth strategy, but an early indicator of a future world where retailers who will remain will look more like serfs working under a feudal lord, working hard and paying homage by doing this. that Amazon does not need to do this, if only to survive on the remaining table remnants of retail.
