In last week’s news round-up, we mentioned that Rite Aid had opened an Amazon.com storefront. As of this writing, they have almost 60 feedbacks! 60 feedbacks in under a week is a lot of sales. If they’re getting a feedback for every 10 sales (a decent rule of thumb) that’s 600 sales!
I know some sellers who scout at Rite Aid, especially in the cosmetics clearance area. While the really low prices available at local stores probably won’t show up on Rite Aid’s Amazon listings, you never know. If Rite Aid is serious about selling online they may start managing their supply chain in a way that allows them to get those clearance items online and away from bargain hunters!
Small businesses, like the Amazon sellers I work with each day, are generally more flexible, more agile and more prepared to try new things than bigger companies. That’s why I don’t think Amazon sellers should be too concerned, at least initially, by big brands opening stores on Amazon.
One possible advantage of big brands coming to Amazon is that they’re still 3rd party sellers, no matter how big they are. That means they have to play by the same rules as the rest of us. And maybe they can throw their weight around and improve the way Amazon interacts with 3rd party sellers of all sizes. That might be wishful thinking, but you never know!
Of course, not all big brands are interested in selling on Amazon. A few weeks ago, Adidas announced that they’d no longer be allowing their dealers to sell on Amazon or eBay. Do you think there’s a reason that a “luxury” brand is turning away from Amazon while a retailer of everyday and household goods is signing on?
