Partnering Up With Kohl’s for Amazon Customer Returns
Amazon In-Store Pickup & Returns
In order to help increase sales and market itself better to the online sales industry, Kohl’s will now allow all of their products that are bought on Amazon to be returned directly to a physical Kohl’s store.
This is a huge win for Amazon, as outlined by a recent article on NPR. Right now, one of the few traditional retailers that’s managing to keep up with Amazon is Walmart, which is expecting to see its online sales nearly double due to COVID-19.
The world’s largest retailer recently acquired the online e-tailer Jet.com and is expanding its online food pickup and delivery capabilities in an effort to compete more directly with Amazon.
The one experience that Amazon hasn’t been able to offer customers that Walmart could is in-store pickup and returns. Walmart, in fact, recently announced that it would begin offering “30-second returns” for online purchases at Walmart locations.
For Amazon, this is where the Kohl’s partnership comes in. The department store chain is making it easier for Amazon customers to do more of their shopping online by serving as Amazon’s back office for returns.
This also allows Kohl’s to have a leg up over its competitors, since they can offer a much more convenient and consumer-friendly shopping experience than the others. Further, it may drive Kohls’ competitors to partner up with Amazon as well, in order to lessen that advantage.
Either way, Amazon wins. So do its consumers, who can shop and return in whatever way they choose.
Why is Kohl’s partnering with Amazon?
Many are surprised by this move from Kohl’s perspective. The company has lost 3% of its sales since 2012. Some may read it as a desperation move on Kohl’s part to stay relevant in the online market, where very few companies have been able to compete with Amazon.
If you can’t fight your competitor, why not join them? Some companies have tried and failed to work with Amazon when it comes to online sales. Toys R Us and Borders both went under, for example.
Kohl’s endorsement and partnership with Amazon seems a little more full-throated, though. Kohl’s has already dedicated a chunk of its physical space to Amazon’s products.
Kohl’s has debuted the new Amazon Smart Home Experience concept in 10 select Kohl’s stores across the Los Angeles and Chicago areas.
The new partnership features a store-within-a-store concept to deliver a smart home shopping experience for consumers. Customers can purchase Amazon devices, accessories and smart home devices and services directly from Amazon, within select Kohl’s stores.
The 1,000-square-foot zone will provide a hands-on, interactive array of smart home products with a variety of Amazon devices, including Amazon Echo, Echo Dot, Amazon Fire TV and Fire tablets. The store will showcase how smart home products, many powered by Alexa, can modernize and simplify home management, entertainment, security and more.
Perhaps the partnership will pay off for both sides. Kohl’s is certainly trying to avoid being swallowed up by the online sales giant. Only time will tell if both companies can make the most of it.