Two Amazon.Com Nuggets of Wisdom

This morning I  stumbled upon two articles that illustrate why I think ($AMZN) is going to be around for a long time.

First, from Bloomberg:

“Impulse purchases require people to browse the aisles, however, and that’s happening less and less these days because Web-savvy consumers often already know what they plan to buy and simply pick it up and leave, said Bill Martin, the chief executive officer of ShopperTrak.

These mission shoppers visit fewer stores — three per trip, down from five pre-recession, according to ShopperTrak. As a result, foot traffic may fall 2.2 percent during the holiday shopping marathon, says the Chicago-based research firm.

“There’s been a fundamental change in buying behavior,” Martin said.”

Additionally, Amazon now has smartphone apps that allow you to scan a barcode from in-store and immediately see that you can (almost certainly) buy it cheaper from, and place your online order instantly.  The article quotes Delia Passi, CEO of a company that advises companies how to cater to female shoppers:

““The science of retail shopping has changed, and unfortunately the retailer hasn’t.”

The second article is from the NY Times, about how Amazon is getting into the publishing business.  You can get the gist of the point with one key quote from “top Amazon executive” Russell Grandinetti:

“The only really necessary people in the publishing process now are the writer and reader,” he said. “Everyone who stands between those two has both risk and opportunity.”

Variations on that theme apply in a lot of businesses…


disclosure: no positions in $AMZN


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