Reported Bloomberg News a company Amazon is considering opening discount stores to sell unsold electronics and household goods at large discounts, Which is a potentially significant expansion of the company’s growing portfolio from traditional locations.
According to the information, it is assumed that the discount stores include the unsold inventory located in the Amazon warehouse.
AndThe company considered opening permanent stores, as well as temporary locations in malls or parking lots.
Plans were under discussion last year, but the pandemic and the new Amazon Fresh series forced many employees to focus on day-to-day operations.
This plan is a way for Amazon to clean up its warehouse and dispose of inventory without having to destroy it while preserving On price and letting customers access products at low cost.
Amazon has built massive stores in the past several years, starting with a chain of bookstores that debuted in 2015 in an upscale Seattle shopping center.
It also opened Amazon Go, a small store without a cashier that uses cameras and other sensors to track purchases, in 2018.
There’s also Amazon 4-Star, which is a marketplace for electronics, household goods, and toys that sells a mixture of highly-rated and best-selling items.
The grocery store company, Amazon Fresh, started opening its stores last year, and has been steadily adding new locations.
Amazon today operates 96 physical stores and seven pop-up outlets in malls under its own brand, according to its website.
The supermarket company Whole Foods Market, which was acquired in 2017, has more than 500 grocery stores.
And the proposed new store inventory will likely be similar to Amazon 4-Star, with an emphasis on smaller items that don’t take up a lot of floor space.
The opening of the discount store is in keeping with traditional retailers’ decades-old approach to getting rid of slow-selling merchandise.
Amazon sells discount inventory online through a program called Amazon Outlet, and returned and used items are sold through a separate page called Amazon Warehouse.
As the company grew, vendor managers were encouraged to bargain with suppliers to gain the right to return unsold Amazon inventory to them.
We were negotiating intensely, and the goal was always to recover assets, ”said (Faisal Masud) Faisal Masud, a former Amazon manager who helped launch the Amazon Warehouse deals program a decade ago.
Despite these efforts, the company still has a lot of unsold products.