retail news in context, analysis with attitude

<>by Kevin Coupe

It was just a week ago that MNB took note of a new survey from Deutsche Bank suggesting that 85 percent of Amazon Prime members would be willing to purchase prescription drugs from Amazon, which it said poses “a huge opportunity for the e-commerce behemoth.”

It ends up that Deutsche Bank did not have to look to another industry to find a place that Prime members would like Amazon to disrupt.

CNBC now reports that “about two-thirds of Amazon Prime members would try a free online bank account from the e-commerce giant, according to a report from consultant Bain & Co. That's considerably higher than the percentage of regular Amazon customers (43 percent) or non-Amazon customers (37 percent) who would try an account, indicating strong loyalty to the Prime bundle of services.”

Bain asked the question with a suggestion that such a Prime bank account would be connected to extra discounts on Amazon. Experts contacted by CNBC argued that Amazon could make such an arrangement work by installing ATMs in its Whole Foods stores, and also could enable its Alexa-based systems to allow people to access digital banking services via voice.

I do think we all have to be a little careful here about assuming that Amazon is able to do and wants to do pretty much everything and anything. It is just like when pretty much any retailer seems wounded and available; analysts all jump up and suggest that Amazon should buy it. My argument is that “wounded” and “available” is not the same thing as “desirable,” and Amazon knows the difference.

That said, it seems noteworthy that Amazon has generated this kind of trust, especially among Prime members. Noteworthy and, if you’re competing with Amazon, concerning … because people are willing to extend that level of trust and even the benefit of the doubt to one specific company that seems to have limitless ambitions.

How do you compete with that?

That’s the Eye-Opener.
KC's View: