Here is yet another threat from the online giant that is already having a serious impact on large and small retailers: Amazon could be setting up a “locker” in the vacant storefront next door to your shop. According to the Amazon web site, “Amazon Locker provides….a self-service delivery location to pick up and return your Amazon.com packages. Once your package is delivered to the Amazon Locker, you’ll receive an e-mail notification with a unique pickup code that includes the address and opening times for your selected Locker location.”

Standard locker delivery takes 3-5 days and is usually free, but Amazon Prime customers get free two day locker delivery.  For those in a real hurry, one day locker delivery is available for a very small charge.  Amazon is getting dangerously close to the instant gratification that only brick and mortar stores can offer.  

This service is intended for customers who don’t want packages sitting on their doorstep, or who have an address that is difficult to reach — such as a University of Wisconsin dorm room.  The University of Wisconsin has just entered into an agreement with Amazon that will guarantee the university at least $100,000 a year from Amazon in exchange for locating the Pickup Point on campus.

My friend and colleague Sandi Torkildson, owner of A Room of One’s Own bookstore, commented “The Pickup Point could make life harder for Downtown businesses, many of which are already in stiff competition with Amazon, and hinder efforts from city officials to boost retail on and around State Street.” She also mentioned to me that she is concerned that an Amazon locker elsewhere in Madison, such as in one of the retail areas, could be even worse for locally owned shops.

Amazon is of course not just a threat to book stores.  They are eating into the market share of all kinds of shops.  Keep an eye on their plans to expand their Pickup Points, and make sure your public officials are aware of the impact of these locker rooms on locally owned business.

Happy Retailing,

Carol “Orange” Schroeder 

PS  I will be taking a short vacation next week, so there will not be a Specialty Shop Retailing blog next Monday.