Amazon setting up physical stores in the US; India to be another prospective market

Amazon, world’s largest online marketplace, is setting up physical brick and mortar stores to increase its reach and diversify the offerings. The company is exploring the idea of creating stores to sell furniture and home appliances, like refrigerators which shoppers are reluctant to buy over the internet since they are accustomed to first experiencing them in person and then buying the same. The stores would serve as showcases where people could view the items in person, with orders being delivered to their homes. Although these will be physical stores, the company will be leveraging augmented or virtual reality to allow people to see how couches, stoves and credenzas will look in their home, making it an immersive experience for the customer.

Besides furniture, the company is also experimenting with groceries store. In Seattle, Amazon has opened a convenience store that does not need cashiers, and it is close to opening two stores where drivers can quickly pick up groceries without leaving their cars. It is also exploring another grocery store concept that could serve walk-in customers and act as a hub for home deliveries.

Although the company already dominates online space, it will be interesting to analyze how the firm plays in the physical space. India, the world’s fastest growing economy, is certainly on the radar of Amazon due to its sheer growth potential.