Amazon rolls out in-store pickup and local delivery for marketplace sellers

Discussion
Source: Amazon testimonial video
Oct 22, 2021

Amazon.com is rolling out in-store pickup as part of a host of services that will enable third-party sellers on its platform to offer convenient, fast fulfillment to shoppers who live near their physical stores. The company is also introducing local deliveries as part of the same service, known as Amazon Local Selling.

The retailing and technology giant announced the new program at its Amazon Accelerate conference for third-party sellers. More than half of the revenues generated on Amazon’s platform come through companies selling on its marketplace.

Amazon Local Selling is now available from local independents and regional and national chains. Companies currently offering the service include 4 Wheel Parts, Adorama, Appliance Connection, Beach Camera, Best Buy, DataVision, Electronic Express, Exclusive Furniture, Focus Camera, Mavis Discount Tire, Mattress Warehouse, MODIA, Sears Hometown Store and World Wide Stereo.

Shoppers on Amazon looking to purchase items for in-store pickup will be able to select that option when placing their orders at no additional cost to the customer.

Some third-party sellers that offer delivery to their own local areas will be able to fulfill items for deliveries by using their own vehicles. Sellers have the option of adding services such as assembly or installation to orders on the site.

Walt’s Television, an Amazon marketplace seller with a store in Tempe,  AZ, and distribution centers in Louisville and Dallas, participated in a Local Selling pilot.

“Amazon has been the foundation of our national online selling for years. Now we are bridging our online business with our in-person experience, which means more customers are getting to know our brand and full range of services,” said Bear Hendley, manager of Walt’s Television. “New local customers are finding us and giving us very positive feedback on the convenience of buying online and picking up at one of our locations. We’ve seen a significant increase in local sales, and we’re excited about the ability to offer installation and repair services to Amazon customers.”

“Local Selling presents enormous opportunities to a large number of sellers who want to bring more product selection to their Amazon business, enabling many to expand their multichannel offerings by integrating their physical stores and delivery capabilities with their digital operations,” said Jim Adkins, vice president of recreational and vocational categories at Amazon. “Our research shows that many customers will opt for local pickup when given the choice.”

DISCUSSION QUESTIONS: Do you see the rollout of Amazon Local Selling as a game-changing retail event? What will be the repercussions for Amazon, its marketplace sellers, customers, online platform and marketplace rivals?

Please practice The RetailWire Golden Rule when submitting your comments.
Braintrust
"Rivals have relied on Amazon’s low store count to gain an edge. Now Amazon Local Selling shifts the competitive dynamic."
"Told you. Total World Domination. Seriously though, anything that gets shoppers into local marketplace sellers’ stores works for me."
"Curious to know what this is going to cost local sellers and how much data is shared."

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18 Comments on "Amazon rolls out in-store pickup and local delivery for marketplace sellers"


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Mark Ryski
BrainTrust

This is an interesting approach to enabling Amazon sellers to provide in-store pick-up, but it will have its challenges. I think the biggest challenge will be coordinating logistics with the local firms. It’s well understood that long wait times for pick-up and misplaced orders can be a huge dissatisfier, and so connecting online pick-up to a large number of smaller firms may prove to be challenging. If the service experience is not good, this won’t be a big win for anyone.

Doug Garnett
BrainTrust

An interesting addition, but not game changing. Amazon’s added offerings like this are just tidying up forgotten details around the edges. There simply isn’t enough value for customers (the ones buying products) in this.

I’m also disappointed at how often Amazon dresses up an announcement like this as if it’s helping their sellers when the real value is getting more people inside their own stores to sell their own goods.

Bob Amster
BrainTrust

Amazon Local Selling is yet another enhancement to the Amazon customer experience. While I don’t know exactly how Amazon and the merchants’ systems interface, this looks like a real winner for all three parties: the customer, the marketplace seller, and Amazon. Definitely a game changer for Internet marketplaces, again, led by Amazon. They never rest.

Venky Ramesh
BrainTrust

The local pick-up will be a great service for those customers who are increasingly buying multiple categories of products online and yet want to support local independent stores.

Dave Wendland
BrainTrust

This builds an intriguing bridge between the online and in-store experience. And I personally believe that it will have a ripple effect across the retail landscape. Amazon is quickly becoming part of community retail — and this is indeed game-changing.

Lisa Goller
BrainTrust

Rivals have relied on Amazon’s low store count to gain an edge. Now Amazon Local Selling shifts the competitive dynamic.

Amazon gains brick-and-mortar influence with pervasive local reach that strengthens its online platform with faster fulfillment.

SMB sellers get their products closer to consumers by accessing the retail giant’s enviable, efficient supply chain network.

Overall, this rollout helps Amazon and its SMB sellers offer more product variety and omnichannel options to satisfy shoppers.

Liza Amlani
BrainTrust

This addition to Amazon’s push towards physical retail and enabling localized sellers to sell offline is going to be a game changer for customers and merchants.

This just proves the point further that physical retail is not dead. It just needs to evolve to serve the customers where and what they want to shop.

Jeff Sward
BrainTrust

“Localized Amazon.” That’s not a big deal. It’s a HUGE deal. It’s a best-of-all-worlds deal for the local merchant — IF the execution goes well. We know that shoppers want to support local businesses. They are on Amazon anyway. Now they can shop on Amazon for local merchants and experience the benefit of delivery. Hopefully the fees will be reasonable enough to make this all happen.

Steve Montgomery
BrainTrust

One of the benefits for the local retailers is creating further brand and product awareness. Perhaps the next time a customer needs something from that retailer they might go there and buy it directly from them rather than through Amazon.

Shep Hyken
BrainTrust

Amazon is expanding their customer options through existing channels that are available to them. They have physical locations, so it makes sense to do what other retailers are doing in the marketplace.

Georganne Bender
BrainTrust

Told you. Total World Domination. Seriously though, anything that gets shoppers into local marketplace sellers’ stores works for me. As a consumer I would rather pick up product from a local retailer than have it delivered by Amazon. It’s easy and there is less packaging waste.

Ryan Mathews
BrainTrust

Maybe not “game changing” today but all part of Amazon’s strategy of building a commercial ecosystem that’s hard to escape. I think any analysis of repercussions needs to start with thinking like Amazon — always taking the long view even when the near term vision is a little opaque.

Harley Feldman
BrainTrust

This is a game-changing rollout. The one advantage that Walmart has always had over Amazon is local stores. As far as the consumer is concerned, this looks like local stores for Amazon’s online sales. This change should enhance Amazon’s sales, add a local pickup presence for marketplace sellers, enhance pickup and delivery options for Amazon’s customers, and be a threat to local retailers who do not sign up for the Amazon marketplace sellers’ capabilities.

Richard J. George, Ph.D.
BrainTrust

Amazon does it again. What a terrific collaboration with the online giant and local stores. Not only does this make Amazon a more local retailer by way of this relationship, but it adds the local, in-store connection for consumers who want to shop and buy local. For the local retailer this is an opportunity to interact with the leading data analytics and logistics company in the world; no longer as a competitor but as a partner. Win-Win-Win for Amazon, the local retailer and consumers.

Karen Wong
BrainTrust

Curious to know what this is going to cost local sellers and how much data is shared. Margin aside, it’s all about the data play in the long-term.

James Tenser
BrainTrust

This feels like a natural next step. Evolutionary, not revolutionary, but certainly significant in terms of Amazon’s projection of market power.

I’d imagine a prime challenge for Amazon Local Selling will be maintaining a consistent quality of experience across a very diverse set of marketplace retailers. For marketplace retailers, the rules could feel stifling at times.

I also have questions about how the mother ship plans to keep tabs on available inventory in each location. “Units on hand” data would be essential to the promise of rapid fulfillment — and that status can change by the minute.

Rachelle King
BrainTrust

Traditionally, the only way to get goods from Amazon.com has been via shipping. In light of recent supply chain disruptions, this new service may benefit some consumers by minimizing potential transit delays.

Regional retailers who have relied on their physical store presence and local market reach as a competitive point of difference may see this as a good opportunity to sharpen their local strategies. For example, offering in-store pickup, local delivery or even extending personalized services may help bolster customer loyalty.

Anil Patel
BrainTrust

I would consider this news an alarm for those retailers who are still not very strong on their omnichannel initiatives. Omnichannel is not an option anymore but a critical necessity.

But retailers must remember not to put all their eggs in one basket. Over-reliance on Amazon can be counterproductive. A strong e-commerce platform of the brand helps have better control over the customer experience and maintain higher margins.

wpDiscuz
Braintrust
"Rivals have relied on Amazon’s low store count to gain an edge. Now Amazon Local Selling shifts the competitive dynamic."
"Told you. Total World Domination. Seriously though, anything that gets shoppers into local marketplace sellers’ stores works for me."
"Curious to know what this is going to cost local sellers and how much data is shared."

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