If you’ve never heard of the word “showrooming,” you might not be aware of one of the most fundamental shifts in retail. Heck, you might even have showroomed and not even known you were doing it.
Here’s how to tell: If you’ve ever been in a store and pulled out your smartphone to see if another retailer or online store has the product you’re looking at for a better price, you’re a showroomer. It’s a growing trend and it has retailers rightfully worried.
The biggest benefactor of showrooming is Amazon.com. eBay, Kijiji and Craigslist pick up a lot of business this way too, but the sheer size of Amazon’s catalog paired with a high degree of customer loyalty means they win.
You’d think that the company would be doing whatever it could to facilitate showrooming. The most obvious way to do so would be to create iOS and Android apps that let you scan the UPC barcode of the product in question, to trigger a quick lookup on Amazon’s website. What could be easier? Companies like CNET have had this functionality built-in to their apps for years.
And yet, rumour has it that Amazon has bricks and mortar ambitions of their own.
Now while I have tremendous respect for Amazon founder Jeff Bezos and his team, this strategy – if indeed real – seems out of sync with the company’s strengths. Considering that the company only makes a single product line – their highly successful Kindle readers and tablets – they aren’t in the same game as Apple, Microsoft or even Google who arguably have strong reasons to give consumers a physical place to experience their products.
Would these rumoured stores be a new take on the book-seller? That also seems odd. Let’s face it, if they simply added a barcode scanner to their Kindle app, every single bookstore on the planet would become an Amazon bookstore. Prefer e-reading? Buy the book immediately and have it delivered to your chosen device before you can pass by the physical cash register on your way out. Want a physical copy? You’ll probably get a better price on that too.
The current belief is that these stores will sell high-end devices like laptops and tablets in addition to Amazon’s own Kindle line.
If this is true, Amazon might need to watch their backs…. Showrooming could just as easily turn the tables on them too.
Update, Feb 21: Well lookee here… Amazon.ca announces new shopping apps for iPhone, iPad, Android and Windows Phone. I guess that dollar store crystal ball I bought might be working better than I thought ;-)
Image credit: LuxuryLuke via Flickr.com