Partnering with Amazon is the most lucrative decision for companies.
Kohl’s, the department store chain in Chicago, is partnering with Jeff Bezos to accept returned items from Amazon for free. Other brands are following Kohl’s footsteps to collaborate with the ecommerce giant.
Kohl’s 82 stores in the Chicago and Los Angeles areas will collaborate with the ecommerce giant.
Kohl’s will pack and ship the merchandize back to the Amazon for free. Earlier in September, Kohl’s announced a plan to sell the Alexa-enabled Echo home speaker, Fire TV, tablets, and other Amazon branded gadgets in 10 of its stores.
The collaboration of the Chicago’s department store with the online retailer is a way to keep up with the constantly changing landscapes. Retailers often fail to partner with Amazon.
Retailers such as Toys ‘R’ Us, Walmart, and Target have been in the shadow with Amazon’s significant presence in the market. The retailers are now vying to work closely with the ecommerce giant to boost sales.
The retailers are following Kohl’s lead.
Sears, which owns Kmart, has had a failed performance as a retailer since 2016. The company lately announced, it is planning to sell Kenmore appliances along with Alexa-compatible devices on Amazon.
Cooper Smith, director of Amazon research at L2, a digital performance tracking company, is cautioning brands of partnering with Amazon.
“Partnering retailers need to be wary at the same time. Doing deals makes sense since it can bring back customer especially around Black Friday. Amazon isn’t just working with retailers. The company has opened its own physical stores, Amazon Books, which sells best-selling books and Amazon devices.”
Amazon brought over Whole Foods, the grocery retailer, for $14 billion. As per the deal, customers can purchase Amazon gadgets along with daily grocery. This bruised Barnes & Noble’s market share. The company’s share fell 40% this year while Amazon witnessed a 30% growth.
Smith also noted, Amazon is launching private label apparel brands on its own which can affect the bargain-priced fashion at Kohl’s, Sears, and other department stores.
“Walmart is boosting its own digital operation under the leadership of Chief Executive officer, Marc Lore. If anyone can beat Amazon at its own price game, it’s Walmart,” Smith added.