The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Manchi Vamsi Krishna, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur.
Amazon just launched a new store called Amazon Exclusives that features new innovations from up and coming brands. The store basically showcases products from new innovators which are featured by some of the shows like “Shark Tank”.
According to CNBC, the new marketplace will give the customers a “first look” at the products from up-and-coming brands which have made their mark on crowdfunding campaigns. In a company press release, VP of Amazon Marketplace Mr. Peter Faricy said, “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.”
The products available on the store cannot be sold through a third party store or website. They are only available through Amazon, or through the product company’s direct website or store. As written in LA Times, this is a win-win situation for everyone as the customers get to about the latest products that they might otherwise have not known and the products get a huge exposure boost.
Michael Hsu, CFO at Peri, which makes an iPhone case which doubles as a speaker said, “From a business perspective, the new store is nirvana for a new brand, and the end result is Amazon’s customers will have access sooner to cooler products.”
One major advantage for the customer is that the orders are Fulfilled by Amazon and not by the seller as is generally the case. Hence, all the orders would be eligible for Free 2-day shipping for Prime members.
This is a new strategy from Amazon and a quite interesting one too. This increases the target customers of Amazon. If nothing else, it gives customers the belief that Amazon just does not sell major consumer goods and is willing to go out there and find new and innovative products that are grabbing customer attention.
LA Times: http://www.cnbc.com/id/102495880
Money Talks News: http://www.moneytalksnews.com/amazon-launches-store-showcasing-new-gadgets-and-inventions/
Business Insider: http://www.businessinsider.in/Amazon-launched-a-new-store-to-sell-products-from-Shark-Tank-and-other-exclusive-items/articleshow/46531805.cms