retail news in context, analysis with attitude

Amazon announced yesterday that it is launching a new online store "that gives customers direct access to innovative new products from popular up-and-coming brands. Customers can explore a unique range of electronics accessories, toys, sporting equipment and much more. The new store will feature brands from new product inventors including some products featured on the TV program 'Shark Tank'."

The announcement goes on: "To provide customers convenient access to new products, Amazon built the Amazon Exclusives store and worked with select brands to help bring their innovative items to Amazon. Many of these items have won innovation awards from industry associations. Products in the Amazon Exclusives store are only available on Amazon or directly from the brand's website or its physical stores. Items are fulfilled by Amazon which means they are eligible for Free Two-Day Shipping for current Prime members in the U.S."
KC's View:
It seems to me that whether or not this works, this is a smart idea that demonstrates the power of what Amazon can do - it has the ability to segment pretty much anything it wants to, without worrying about shelves or end caps or any of the legacy and infrastructure issues that bedevil traditional retailers.

The other thing that's important is that Amazon is differentiating itself. Like with some of its new digital streaming programs, it is looking to provide differentiated product wherever and whenever it can.

Smart move.