Amazon: The Next Direct Marketing Revolution is Changing Everything

Amazon: The Next Direct Marketing Revolution is Changing Everything

Amazon.com’s retail popularity just keeps growing.

And why not?

The pioneer in online shopping comes closer to perfecting e-commerce and logistics, bridging the gap between warehouse-to-customer fulfillment.

And the company keeps searching for ways to make ordering online even easier.

Amazon’s latest move? Buying my favorite Whole Foods Market grocery chain.

Who shops at Whole Foods? A lot of affluent buyers.

It now gives Amazon a chance to crack the home food delivery market, using Whole Foods’ grocery distribution network with its own logistical expertise.

Amazon’s direct marketing competition comes from Walmart, which delivers in specific areas; Peapod, which works in partnership with Stop & Shop and Giant Food Stores; and Fresh Direct, which serves East Coast markets.

Amazon could also launch a subscription box service like Blue Apron, which delivers pre-portioned meals.

The thought alone is enough to impact Blue Apron’s IPO, in which it seeks $480 million through 30 million shares.

From Food to Clothes

Like the guy in the Ginzu Knife commercial likes to say … but wait! There’s more!

Amazon is branching out into the clothing business, specifically letting consumers try on clothes at home and returning what they don’t want.

It’s called Amazon Prime Wardrobe, and like the subscription clothing service Trunk Club, allows users to try on clothes at home, then ship back what they don’t buy in a resealable UPS box with return labels.

Prime Wardrobe works like this:

  • Amazon Prime subscribers can choose three or more pieces of clothing, shoes or accessories to fill a box that arrives at their doorstep.
  • They have seven days to try them on, decide what to keep, and ship back the rest.

The online retailer is developing its own fashion labels to sell suits, dresses and other clothing.

It’s also trying to incorporate its voice-activated Echo speaker brand into its fashion realm.

As of yet, Amazon doesn’t offer a stylist who suggests and picks items for you like Stitch Fix and Trunk Club. The latter was purchased by Nordstrom in 2014 for $350 million.

But these subscription services don’t have Amazon’s size. Neither does Fabletics or Rent the Runway, which launched its own subscription business “Unlimited,” in 2016.

Catering to the ‘Low-Income’ Market

Amazon customers on government assistance will be able to order Amazon Prime for half price.

The move puts Amazon head-to-head with retail rival Walmart, which attracts low-income spenders.

Shop and ‘Dash’

Amazon has also remade its Dash device, a dedicated showrooming device.

The Amazon Dash Wand connects with your smartphone and allows a shopper to scan a barcode in a store to add the item to their Amazon cart.

The new version incorporates Alexa voice recognition. It’s so you can showroom without waving your device around and potentially offending store employees.

In an ironic twist, Amazon has also patented technology that allows it to shut down showrooming in its own stores.

Amazon is an expert at bringing in customers.

So are we at Creative Direct Marketing Group.

Need help keeping up with the changes and creating a marketing campaign?

Email me at craig@cdmginc.com or call me at 310-212-5727 to find out how I can energize your profit potential.

Leave a Reply