With the grocery world still buzzing about Amazon’s bid for Whole Foods, everyone is speculating about their next big move.
“Integrated retail” appears to be the direction the e-commerce giant is headed. This approach combines the benefits of offline and online channels to offer a better customer experience.
The one benefit of brick and mortar companies is that they allow for customers to try products before purchasing them. But that could be changing soon, thanks to Amazon Wardrobe.
Amazon Wardrobe is Amazon’s latest foray into integrated retail for fashion. The Amazon Wardrobe program combines an offline and online retail experience for its members. Amazon Prime members can now order clothes online, try them on at home, then purchase the items if they like the style and fit. This solves the problem of consumers worrying if they will like the garments they buy online.
Amazon Wardrobe benefits Amazon in two ways. First, Amazon gets to capitalize on their current leadership in online retail. Their online sales are already projected to grow nearly 14% in the next five years. Amazon is capitalizing on this growth while cashing in on their brand loyalty with Prime subscribers. Amazon Wardrobe will be a great perk for loyal prime members who will likely drive revenue for all retail products.
Amazon will also be offering free shipping both ways and a seven-day trial period at no additional subscription cost to consumers. Companies such as TrunkClub and StitchFix already have a similar service, but Amazon allows customers to pick the clothes themselves and is not charging any membership fee for the service.
This new venture is Amazon’s attempt to maintain its leadership position and to solve the complexities of buying clothes online, as many customers prefer to try them on before making a decision. Prime members are likely to drive revenues for all of Amazon’s retail products, and Prime Wardrobe provides another reason for them to stay on the Amazon platform.