Amazon would have a plan to open outlet stores with electronics and household products at very low prices
The ecommerce giant was studying this business strategy to free up heavily discounted warehouses before the pandemic hit and changed everything.
In 2019, an Amazon report was released indicating the destruction of millions of items that the company had not been able to sell. Televisions, appliances, toys and many other products of all categories that ended up in a landfill.
Reporters responsible for this new They posed as Amazon employees to discover the end of many of the products that cannot find a buyer on the web. As a solution, Amazon began to propose the creation of outlet stores where they can offer these products at very low prices and thus free up their warehouses in a more ethical way, as he explains. Bloomberg.
This plan was on the table before the arrival of the pandemic, but employees had to put this plan aside to focus on the opening of the Amazon Fresh chain and the daily operations that multiplied during the lockdown. “It is a way to clean warehouses and review inventory without having to destroy it“said one of the people consulted by the magazine. Amazon for its part, has not made any official statement about it.
The company already has physical stores for Amazon Go, 4-Star y Fresh with different objectives. The new plan, according to the information provided, proposed opening permanent and temporary physical stores in shopping centers and other establishments where unsold products should be sold and must leave Amazon warehouses to make room for new sales.
The idea seems similar to Amazon 4-Star stores, where only the best rated products on the web are placed. If they have less than four stars They are not placed in the physical store, giving up the doubts that even buying online generates. Thus it is possible to consult the product live and be able to touch or test it, before deciding to buy.
In the case of outlet stores, the products that would be offered would be small, household devices, electrical appliances, toys and kitchen or baby products that can be carried in the trunk of the car. Clothes would be left out, as it would be necessary to offer several sizes, despite the fact that this type of outlet store is popular among fashion brands.
There is no information on whether the plan is completely ruled out or if we will be able to visit one of these stores in the future, when the pandemic subsides. The company has 96 physical stores Amazon, seven pop-ups in shopping centers and some 500 grocery stores such as Whole Foods Market, perhaps the outlet model could be applied in some as a section later.