There’s an app that they’re releasing this weekend and it basically works as you’d expect. Scan a bar code and get a price check on the item at Amazon. The twist is in the launch and the follow-through, salient points below. This has ramifications well throughout our CPG clients and up and down the distribution chain. Disrupting retailers is only the beginning.
Amazon makes a move which could fundamentally change retail sales
Amazon, one of the companies at the very forefront of online retailing in the United States is to make a compelling offer this coming Saturday for one day only – use its smartphone app (Android or Apple app) to compare prices, and they’ll effectively pay you $5 to walk out of the store.
On Saturday December 10 Amazon is sweetening the deal by giving customers who use the app (with geolocation switched on) a discount of 5 percent (up to $5) if they buy the item they price checked through Amazon (within 24 hours) instead of accepting the price in front of them for the convenience of taking immediate possession of their purchase. The offer is valid for up to three items per customer.
A mobile app gives online retailers the ability to make a bid on a customer’s patronage at the time- and point-of-sale, inside a competitor’s bricks and mortar. Offers can be made and thresholds established for changing behaviors with incentives, at the same time as creating a marketing intelligence tool par excellence.
“The Retail Industry Leaders Association (RILA) reacted to a new smartphone App from Amazon.com that encourages holiday shoppers to use brick and mortar stores as showrooms to then purchase merchandise online from inside the store. Central to this tactic is Amazon’s continued practice of using a pre-internet loophole to avoid state sales tax collection, a move that gives them an unfair competitive advantage over Main Street retailers.” (RILA)
– Randall Noval