Amazon wants to sell these discounted goods in brick and mortar stores, according to the report
Amazon has plans to open discount stores to relocate some of its unsold electronics and home goods at deep discounts, a new Bloomberg report claims. The products that fill the shelves would be pulled from Amazon’s vast network of warehouses. According to Bloomberg, Amazon is playing with their pop-up stores or permanent shopping areas to shift the reduced inventory.
Amazon prioritizes smaller items that don’t take up much space, from household items, toys, kitchen gadgets, and consumer electronics. That decision was seemingly made so that Amazon doesn’t need a lot of retail space (a pop-up store wouldn’t be feasible if Amazon planned to relocate its unsold flat screen TVs, outdoor furniture, and car batteries … the need to run a store the size of of opening a warehouse and avoiding warehouses full of sealant is the reason behind this whole endeavor).
Clothing is not covered by these extra large discounts, Bloomberg claims
“It’s a way to clean warehouses and search inventory without having to destroy it,” said a source within the Seattle-based retail company that formed Bloomberg’s coverage. The plan was seemingly conceived after a report published in 2019 claiming that Amazon had destroyed millions of items it was unable to sell.
Stock that had not shifted in the store, including in the sale, was destroyed. Things like smart TVs and diapers were thrown away by Amazon.
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Amazon wants to use the discount stores to get excess inventory from its warehouses
In connection the reportAmazon has promised to donate its unsold goods. The introduction of these discount stores would be a way for Amazon to generate some extra income before donating these items to charity. By selling the unsold goods in pop-up or outlet stores, Amazon didn’t have to worry about delivery charges, returns, or other administration associated with direct shipping to customers.
Amazon is steadily expanding its retail presence. In the United States, it has 500 Whole Foods locations, checkout-free Amazon Go stores, and seven shopping mall pop-ups. In addition to Whole Foods, it is also steadily opening Amazon Fresh stores, with two locations in London for the walk-in and walk-out stores.
Discount electronics and household goods stores on top of these existing locations would bring about dramatic expansion. However, given the popularity of the annual Prime Day and Black Friday sales, these can turn into a big hit for the online retail giant.
Unfortunately, the plans have been shelved for the time being due to the ongoing public health crisis. With social distancing and other restrictions, it’s hard to see Amazon encouraging customers to go to a pop-up store to buy unsold goods at heavily discounted prices.
Bargain hunters will have to wait a little longer to get your hands on a bargain TV.
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