Amazon announced the launch of a new suite of services on Thursday, October 21, called Amazon Local Selling. These offers include an in-store pick-up option for items from local businesses. This openness to local businesses is part of Amazon’s strategy to establish itself as one of the largest supporters of small and medium-sized businesses.
Several US cities, such as Dallas and Louisville, have participated in the testing of this new set of services. The United States is the first to organize Local Selling, involving companies such as Electronic Express, the largest independent retailer of consumer electronics. India welcomed a similar service called Local Shops on Amazon in 2020 as part of a partnership between Facebook, Jio and Amazon.
Amazon EU: €51.3 billion turnover and €0 corporate tax
Strengthen purchase in stores
Amazon has launched its new shipping option for customers purchasing products for small and medium-sized businesses. Local Selling allows small and medium-sized businesses that sell products on Amazon to offer customers pick-up from their stores. According to Amazon, this should also offer” fast delivery to local customers †
Specifically, when a customer orders a product, he can select the recording in this store and thus search for his purchase the same day. According to the American company, in-store recording does not entail additional costs for users. Amazon Local Selling also enables local delivery by the sellers themselves. A novelty that can entail new costs for companies. Indeed, they have to use their own trucks and vans for these deliveries.
† Local selling offers huge opportunities for a large number of sellers, allowing many to expand their offerings across multiple channels Estimated in a press release Jim Adkins, vice president of recreational and professional categories at Amazon. Our research shows that many customers will opt for local pickup if given the choice “. Delivery times and shipping costs can be determined by stores. Many have the option to deliver in one to two days at no extra cost, according to the release.
Amazon faces strong competition
This opening up to retail actually seems very logical. With the pandemic and digitization, online orders have greatly increased and e-commerce has taken an exponential leap. According to eMarketer, click & collect sales in the United States reached $72.5 billion in 2020. In the first quarter of 2021, e-commerce will” reached 29.1 billion euros in France, or about 4 billion more in one year, according to Fevad, proof if necessary that this market is growing strongly. To meet the demand and enter this juicy market, many local businesses have launched their own online platforms.
Amazon aims to position itself as a leading player in supporting SMEs,” Amazon Local Selling allows merchants to offer customers the opportunity to support local businesses with regional offers “The new features could help it retain these businesses, which are all the more important to the US company because, according to it, “ more than half of all products purchased on the Amazon store are sold by third-party sellers, most of which are small and medium-sized businesses These new features should also allow it to retain its customers and prevent them from turning to the platforms of their local businesses or those of competitors. Merchants who want to offer these services to their customers can sign up on the Amazon -website.
Local Selling is already being deployed and will continue to evolve in 2022, announces the company led by Andy Jassy. As for the availability in France, no exact date has been given, so it will probably have to wait until 2022.