Sep 24, 2021
Amazon’s Retail Strategy with Rick Watson
Watson and Joe Lynch discuss
Amazon's retail strategy. Rick founded
RMW Commerce Consulting,
a boutique ecommerce consultancy that supports investors and
management teams incubating and growing digital businesses online –
both direct-to-consumer and B2B.
About Rick Watson
Rick Watson founded RMW
Commerce Consulting after spending 20+ years as a technology
entrepreneur and operator exclusively in the ecommerce industry
with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry,
and Pitney Bowes. Watson was
one of the first employees at ChannelAdvisor, spending 10
years there in various executive capacities and
launching many of the company’s flagship offerings. He
was then recruited to launch the third-party marketplace
at BarnesandNoble.com, expanding the
company’s product catalog by over 1 million items. After the
successful marketplace launch, he served as CEO of Merchantry and
led the company to a $30M acquisition by Tradeshift. Upon
fulfilling the transition obligations of Merchantry to Tradeshift,
Watson directed the cross-border product strategy of Pitney Bowes,
a $450M business, comprised of Borderfree and the eBay Global
Shipping Program. Watson’s work today is centered on supporting
investors and management teams incubating and growing
direct-to-consumer businesses. Most recently, in partnership with
WHP Global, Rick was a critical resource in architecting the WHP+
platform, a new turnkey direct-to-consumer digital ecommerce
platform that powers AnneKlein.com and JosephAbboud.com.
About RMW Commerce
Consulting supports investors and management teams
incubating and growing digital businesses online – both
direct-to-consumer and B2B. RMW was founded by Rick Watson
after his more than 20 years as a technology entrepreneur and
operator exclusively in the ecommerce industry with companies like
ChannelAdvisor, BarnesandNoble.com, Merchantry,
and Pitney Bowes.
Key Takeaways: Amazon's Retail Strategy
- Rick Watson is the Founder and CEO
of RMW Commerce Consulting, which helps companies accelerate
their shift from retail to direct to consumer (ecommerce).
- In the podcast interview, Rick and
Joe discuss Amazon’s retail strategy including their existing
retail stores and their proposed “department” stores.
- Amazon currently has the following
- Amazon has announced that they are opening a new
“department store” which is most likely not the best
description for Amazon’s new retail model, but the press has been
using it as a placeholder.
- The new store concept is expected to
be about the same size as Kohl’s department stores.
- Rick had the following thoughts
about the new stores:
- The new retail stores will enable
Amazon to move inventory closer to consumers to support retail
sales, along with same day / next day deliveries.
- The new retail stores will most
likely be designed to support both retail and ecommerce
fulfillment. Note: Target currently supports most of their
ecommerce sales via their retail locations, which may be appealing
- The new retail stores would enable
easier returns and potentially reduce returns depending on what is
sold at the new stores. Traditional retail stores have a 6% return
rate, while DTC has a plus 30% return rate.
- Consumer data is very important to
Amazon and the stores may enable them to collect more meaningful
customer data through the stores.
- Amazon may want to use the stores to
increase sales of their private label brands.
- Amazon will no doubt use their
online data to select product SKUs and design the store layout. The
merchandising and product placement/display will be even more
data-driven than traditional retailers.
- Don’t think of Amazon as a retailer,
ecommerce company, or logistics company – think of Amazon as a
technology innovator that is always looking for opportunities to
use technology to deliver a superior experience to consumers.
Learn More About Amazon's Retail Strategy
Amazon vs Target vs Walmart with Rick Watson
Watson Weekly Podcast
The Logistics of Logistics
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