Amazon (NASDAQ:
AMZN
) is bringing its iconic lockers to Staples (NASDAQ:
SPLS
). According to
Reuters
, the lockers will soon appear at Staples locations across the
United States.
Once installed, customers will be able to ship their products
to Staples stores instead of having them shipped to their home or
apartment. While the latter may seem more convenient, the locker
concept was designed for those who may not be home to receive the
delivery.
Amazon and Staples have yet to provide any commentary on the
deal. But challenges could be ahead for both firms.
Staples.com is currently promoting a series of
weekly deals
for printers, including the
LaserJet Color MFP M175nw Multifunction
Printer
and
Officejet Pro 8600 e-All-in-One Printer
from Hewlett-Packard (NYSE:
HPQ
), the
WorkCentre 3045ni Multifunction Printer
from Xerox (NYSE:
XRX
) and the
HL-2270DW Mono Laser Printer
from Brother. The latter retails for the same price on Amazon,
but the Officejet Pro 8600 e-All-in-One Printer is not currently
available from Amazon. Third-party sellers fail to make up for
its absence since they charge more and will take longer to
deliver the printer.
Amazon could not retrieve any results for "Xerox WorkCentre
3045ni Multifunction Printer." But a few Amazon sellers did
manage to undercut the HP LaserJet Color MFP M175nw Multifunction
Printer by $20 to $50. That printer currently sells for the full
price at Staples ($349.99). If it were on sale, its price might
be closer to the Amazon sellers.
With varying prices and varying product offerings, Staples may
actually have the chance to acquire an Amazon customer or two,
which could be the company's ultimate goal. While it might sound
like a risky move (it could theoretically drive down prices and
encourage consumers to use Amazon more often; it also exposes
Staples customers to the Amazon brand), this may be a sneaky
effort to win market share. At the very least, Staples will
receive a small fee for allowing Amazon to place lockers in its
stores.
It is unclear what Amazon hopes to gain from the deal. The
company's lockers are typically placed in stores that are open 24
hours a day, such as 7-Eleven. This made sense because it allowed
customers to pick up packages at any time. It also made sense
from a competitive standpoint. As a convenience store, 7-Eleven
is not in competition with Amazon. They may sell some of the same
items, but the customer base is vastly different. And it's not as
if Amazon can ship a Slurpee or Big Gulp beverage through the
mail.
By coming to Staples, Amazon is attempting to expand its
retail presence without actually opening a brick-and-mortar
location. Some speculate that the company could accomplish this
task (and make a ton of money) by acquiring Best Buy (NYSE:
BBY
), but Amazon does not seem to be interested in acquiring another
retailer. If it did, it could open the door for another online
retailer to rise up and offer lower prices by avoiding the extra
costs that come with managing a physical retail outlet.
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@LouisBedigianBZ
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