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Why some retailers resisted Amazon
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Why some retailers resisted Amazon

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There may be nothing Amazon doesn’t sell. This means that every small or medium-sized chain or independent store in America, in every category, has faced heavyweight competition for about a quarter century.

“I don’t think any category is Amazon-proof,” Nikki Baird, vice president of strategy and product at retail technology company Aptos, said by email. “It’s more about how to coexist with Amazon across all categories.”

Yet in many American cities and towns, some stores seem to be thriving. Bicycles, camera equipment, record stores, resale – and even, among other things, Amazon’s top book category – are among those that have held up quite well over the past two decades. It’s not that Amazon, or other disruptions such as digital alternatives to music and books, haven’t posed a challenge. After all, the e-commerce giant sells used bikes, cameras, records and goods.

But experts say independent stores have remained in the Amazon era because of the products they sell and how they sell them — and because of the people who buy and sell.

The product

Some merchandise is more conducive to purchasing in a physical store because the purchasing decision is based on a multitude of variables beyond price, according to a study by Jonathan Zhang, a professor in the College of Business at the University of State of Colorado.

This includes anything people prefer to try in person. Used bicycles, clothing, shoes, furniture, mattresses and items are difficult to price online, especially given the level of information found on most websites, including Amazon’s, a- he declared by telephone. There are choices to be made regarding materials, fit, features and other variables, said Zhang, who developed a scale to measure what he calls “depth of inspection.”

“There’s definitely a product type effect,” he said. “The products are so complex that it’s difficult for a description, or even for photos – no matter how many photos – to capture them, to give the consumer the feeling: ‘This is the right solution for me’ . Then there are products in general that don’t require much inspection, like buying a hammer, where most people have no problem buying them online because they don’t have need to physically inspect them.

How it is sold

But what about products, like books, that are the same whether you buy them on Amazon or elsewhere?

When Amazon entered the retail landscape in 1994 it was a bookseller, and as it undercut traditional retailers and introduced the world to e-books, industry watchers were bracing for the industry to collapse.

“A lot of bookstores have disappeared,” Zhang said, pointing out the disappearance of the Borders chain and difficulties at Barnes & Noble. “Many stores that only sold books, without curation of products, many of them have disappeared. Those who survived, those who prospered, changed their economic model.

In a Harvard Business School working paper on the bookstores who ralliedRyan Raffaelli notes that, to the surprise of many, the number of independent bookstores increased by nearly 50% between 2009 and 2018, citing figures from the American Booksellers Association. Raffaelli attributes the pivot to three main tactics: retailers promoting the ““buy local” movement; organize their inventory and personalize the customer experience; and use their spaces to host events like story times, reading groups, book signings and lectures.

Barnes & Noble seems to have taken notice. When the chain began its turnaround several years ago, it moved to a very independent strategy where each site was given room to adapt its operations to its local community.

Who sells it

Customers who opt for their local stores also look for specialized knowledge and meaningful interaction with the people who work there, experts say.

Community events like music events at record stores or group rides at bike shops are direct ways to connect with customers. But effective retailers also create a “trust effect” based on shared expertise and affinities, according to Brett Wickard, who started a small chain of record stores in the Northeast that has since been taken over by his employees.

This not only builds connections, but also provides the retailer with valuable information about what customers want in the future, said Wickard, now founder and CEO of unified commerce platform FieldStack.

“You might be talking nonsense,” he said over the phone. “But when you as retailers pay attention, then you see the other opportunities that could make you – I don’t want to say Amazon-proof – but you should just see where your customers are going. You might be surprised.

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