Amazon explored using physical stores to move unsold merchandise at a deep discount

Shawn Knight

Posts: 13,445   +132
Staff member
The big picture: Amazon currently operates dozens of retail stores under the Amazon Books, Amazon 4-Star, Amazon Fresh and Amazon Go banners, not to mention its Whole Foods markets. Expanding those operations to include a discount chain doesn’t seem like it’d be much of a stretch, even if just on a trial basis to test the concept.

Amazon has reportedly flirted with the idea of opening physical retail stores that would carry unsold merchandise at a deep discount. The proposed shops, both permanent and pop-up in nature, could carry a mix of smaller items that don’t take up a lot of floor space such as electronics, toys, kitchen items, baby products and home goods.

Sources familiar with the matter told Bloomberg that the idea dates back to last year, but other matters including the pandemic and the company’s Fresh grocery chain forced the company to navigate those waters first.

Of the retail idea, one person told the publication it would be a way for Amazon to clean out warehouses and go through inventory without having to destroy items. “It is keeping with the value proposition of Amazon, keeping price at the forefront and allowing customers to get access to products at low cost,” the person added.

Amazon in 2019 came under fire after reports surfaced about the company's disposal of millions of products it was unable to sell, prompting the company to launch a donations program a few months later.

Images courtesy alexfan32, bikeworldtravel

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paul1122

Posts: 156   +144
2 ideas on this. One, use the Newegg model and sell things as combo deals Like a pair of Nikes with a Rongtoon electric paper sealer or something else just as nice.
Second, don't they already do this, calling it 'Today's Deals' on the top of the page? That's all junk also.
 
Amazon needs to be broken up and/or taxed properly.

1. Using revenue from your cloud business, systematically undercut retail prices and drive everyone out of business, an effort significantly aided by the recent lockdowns.
2. Colonise the vacant retail space and use same financial power to compete in the high streets.
 

waclark

Posts: 95   +59
2 ideas on this. One, use the Newegg model and sell things as combo deals Like a pair of Nikes with a Rongtoon electric paper sealer or something else just as nice.
Second, don't they already do this, calling it 'Today's Deals' on the top of the page? That's all junk also.

They also own Woot! They dispose of a ton of over-stock and refurb gear there.