Amazon’s new store is all about exclusives

Discussion
Mar 12, 2015

Yesterday, Amazon.com announced the launch Amazon Exclusives, a new online store that gives consumers access to innovative, new "up-and-coming" products including some featured on ABC Network’s "Shark Tank" television program and others that got a start with funding from Kickstarter campaigns.

Amazon Exclusives features a wide variety of products including Jackery mobile device chargers, Tower inflatable paddle boards, Hot Chocolate Design shoes for girls and women, Olioclip photo lenses for iPhone 6 and Zackees LED-turn signal bicycle gloves. Jackery, Oilioclip and Zackees are Kickstarter success stories, according to Engadget, while Tower originated on Shark Tank.

"Our mission on behalf of customers is to make Amazon the destination for brands and innovators to launch and sell their products, providing our customers early access to new products," said Peter Faricy, VP of Amazon Marketplace, in a statement. "We understand that helping brands gain exposure for their award-winning new products is beneficial to customers that desire to be the first to have the hot new item."

The items sold on the new store are only available through Amazon and the manufacturers’ own physical stores and/or websites. Because Amazon handles fulfillment, all the items are eligible for free two-day delivery to Prime members.

"New brands are popping up everywhere, and it can be difficult for consumers to find and evaluate new items online," said Stephan Aarstol, founder and CEO for Tower Paddle Boards. "The Amazon Exclusives store provides a great environment for customers to explore hot new items."

What do you see as the opportunities and challenges facing Amazon as it opens its Exclusives store? Do you think the venture will be a success?

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11 Comments on "Amazon’s new store is all about exclusives"


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Keith Anderson
Guest
7 years 2 months ago

It’s a great move for Amazon, whose economics enable it to showcase products with high potential but without wide brick-and-mortar distribution.

And for new products or brands, Amazon can be a powerful platform for reaching a national audience quickly and proving demand that can later translate to brick-and-mortar distribution.

It may also portend Amazon itself exploring how to adapt the business models of Kickstarter, Quirky and other new approaches to conceiving, developing and taking products to market.

Laura Davis-Taylor
Guest
Laura Davis-Taylor
7 years 2 months ago

Every single retailer I’ve ever seen has won with curated, cool exclusives. Every one of them. There are just so many great products out there and it’s hard to find the time to dig for the special, more unknown ones. If you’ve ever received the Uncommon Goods catalog, you’ll see how delightful this kind of curation can be.

What’s really interesting here is how much quicker it is for a camp like Amazon to do this. No planograms, shelf planning or lead time required—just source and sell. The ticket will be getting them in front of their customers, but as rich and deep as their profiling is, my gut is that we will soon have an “Exclusives just for you!” hyperlink on the Amazon site.

Here’s hoping more traditional retailers follow their lead.

Max Goldberg
Guest
7 years 2 months ago

Another win for Amazon: Exclusive products that have received extensive exposure through mass media or have built cult followings through the Internet. This provides consumers with another reason to visit the retail giant and to get or keep a Prime membership.

Zel Bianco
Guest
7 years 2 months ago

This is a great way for Amazon to stay at the forefront of “new” without having to devote much time and energy to it. They can also use all of their great benefits of being a huge business to support small businesses—gaining sales and shopper loyalty from people who may otherwise try to shop smaller and local.

Ed Rosenbaum
Guest
7 years 2 months ago

My concern for Amazon is how can they build enough stores in enough upscale locations to make this a successful venture, before traditional retailers open a section in their many stores to carry the same products?

Dan Raftery
Guest
7 years 2 months ago

Opportunities are vast, but so are challenges. Exclusivity has been the weapon of choice for many retailers battling Amazon and other digital marketplaces. So one of the big challenges will be to acquire supplier alignment with this concept. One thing you can say about Amazon, they continue to keep things interesting in retail. Are Amazon-branded products on the horizon?

Vahe Katros
Guest
Vahe Katros
7 years 2 months ago

Opportunities—sell more stuff. Challenges—dealing with unmet promises, product launch failures, shipping delays, and managing expectations of AMZN customers who are unfamiliar with buying from nascent companies.

Michael Dudley
Guest
7 years 2 months ago

Amazon has private labeled ~100 products under the “Amazon Basics” brand.

Currently trending: Micro-private labels. A significant chunk of the upper tier 3rd party sellers are having their own branded products made in China. Margins are better and it provides much better control of over listing data. Listing data on Amazon is often crowd sourced. The data hygiene is poor on 3P listings and leads to low conversions and higher refund rates. Plus price pressure.

Some of these sellers have less than 20 products and generate meaningful revenue—>200K a month.

Camille P. Schuster, Ph.D.
Guest
7 years 2 months ago

Is this a clever idea to attract people to store locations? If the store only had the products that could be ordered online delivered within 1 hour or 1 day, there is no incentive to go to the store. However, having exclusive, new, and constantly changing products there could be a real attraction.

Marc Millstein
Guest
Marc Millstein
7 years 2 months ago

I suspect Amazon has much more invested in this venture than selling items. Maybe. More likely, Amazon is looking to test brands and concepts they wish to acquire or leverage for much greater and longer term business benefit than only sales of hot new products.

Arie Shpanya
Guest
7 years 2 months ago

I think this is a great idea for Amazon and the new brands. It provides new products with a trusted name in ecommerce attached to them—giving them more credibility. Delivering those products in 2 days provides yet another incentive for shoppers to join Amazon Prime.

I am interested to see what Amazon does with the pricing and data that it will collect from these sales. That will ultimately decide the long term benefits Amazon will get from the Exclusive store.

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