As stated in L2 research and Scott Galloway’s DLD talk, Amazon’s ultimate goal is to build a pipeline into every home. The brand is willing to lose billions of dollars to do this, as evidenced by its unprofitable investments in fast and low-priced delivery. (Amazon spent $6.6 billion on fulfillment in 2014, while receiving just $3.1 billion in shipping fees.) Now, it seems as if Amazon wants to extend its pipeline to wherever the consumer goes. The brand is creating Amazon Destinations, a site geared at booking local getaways. The front pages of the site directs users to getaways within driving distance of their home (site tagline is “Hit the road: Book local getaways”), while users can still search for properties located further away.
But will Amazon’s partnerships with the hotel industry resemble its mostly hostile or non-existent relationships with Fashion brands? As of now discount listings for weekdays comprise the bulk of availabilities on Amazon Destinations, and searches for prime cities such as Miami yield results that are further away. Availability resembles that of luxury products on Amazon: Gray market items, licensed eyewear, and fragrances are plentiful while accessories and apparel sold directly by the brand are rare. Just 15% of Fashion brands and 9% of Watches & Jewelry brands officially distribute on Amazon, yet non-distributed products from third-party sellers can show more than 4,000 SKUs from third-party distributors.
Properties sold on the Amazon site are listed directly by owners, but it seems as if they are hesitant to sell their prime booking time (weekends) on the new site.
For more on Fashion brands’ presence on Amazon, download a copy of L2’s Insight Report on Amazon: Luxury Fashion.