120 Days of Retail: Day 39 - The Amazon Pick-Up Strategy and How Independent Retailers Can Compete

A look into the new Amazon.com "Pick Up" option and what it means for small retailers

Apr 13, 2023

Amazon plans to push out more small businesses with its new Pick Up offering. Photo courtesy Amazon blog

I've written before about what it was like growing up in Seattle under the shadow of Amazon.com. In the 1990s it was a cool, punk website that my dad liked ordering books from. He was pretty jazzed when for the first time in human history- as well as his life- he could order books without having to pick up a phone, call different bookstores, and have it ordered before waiting weeks for delivery.

We as Seattleites were used to geeky little software companies moving in and our pony-tailed, socks and sandals wearing dads would either join them or know about them. That was back in the days where working on the manufacturing floor at Boeing was one of the best jobs in town, and an elite few maybe worked at Microsoft in the suburb Redmond about 10 miles out of town.

Then Amazon moved from a warehouse in the industrial district into a former hospital on Beacon Hill, then they took over the world. Now Amazon has added a pick up option which is already available in thousands of places around the country, according to retail industry watchdog The Street.

As in the place of other Amazon services, this move is geared toward ultimately making Amazon an "everything store" which will allow shoppers to buy everything they need, only through Amazon.com. With the new pick up option Amazon is aiming at gutting local retailers who offer Buy Online Pick Up In-Store (BOPIS). Retailers like Best Buy, Target, and others.

For the time being, there's no way Amazon can actually replace those services where they're offered by retailers who actually have a foothold in the community. For one, Amazon doesn't operate actual stores so unlike with independent retailers, shoppers won't take a fun opportunity to shop the actual store they're in and get advice from employees. However with over 2,800 Amazon lockers already installed across the US it presents another hurdle for already challenged independent retailers.

Luckily it is still the case that over 80% of shopping still occurs in person, and over 25% of retail shopping is still done with independent retailers.

Local, independent retailers can compete with big box stores and Amazon by offering their own Buy Online Pick Up In-Store service through ListIt. ListIt offers a free service to upload products to a store page and begin advertising your goods to local shoppers in your community in seconds. It's as easy as posting a picture to Instagram or Facebook. Just snap a picture or upload one from your phone, then write a description and voila, shoppers will be able to find the product on the ListIt site or app and buy through you.

Another great benefit of implementing a service like this is that- not only does it drive a sale to your store that otherwise might have occurred online- but it drives additional foot traffic to your store where shoppers have the chance to see your other inventory.

The effect of BOPIS driving foot traffic to local stores that offer it is so pronounced that Amazon doesn't even pay rent on its Amazon lockers for the small retail stores that have them! Getting a customer in the door is a big part of the challenge but allowing them to buy online introduces them to your business in an easy, free way that is helpful to them. So it's a win-win for your business.

ListIt is the Buy Online Pickup In-Store solution for local retailers. It’s free and takes only seconds to upload your first product. We’re launching April 2023. Have questions? Reach out to me directly at james@listit.one and be sure to check out our website for updates and the beta product sign-up. Coming this April, 2023!