The Future of Holiday Shopping

Fri 16 Dec 2011 @ 16:25

As the holiday season comes upon us, Devin Davis from Sterling PR looks at how certain technology is beginning to change the whole shopping experience...

Technology has changed the way consumers approach the holidays. For years now, media and analysts have pointed to Cyber Monday as the prime example of this.

In the next few years, mobile applications could very well outpace the Cyber Monday (and even Black Friday) hubbub.

No, really.

There have been a number of barcode-scanning applications, including RedLaser, ShopSavvy and Barcode Scanner (Android only) for some time now, and last week, Amazon delivered a one-day discount using their “Price Check” application, which uses barcode-scanning technology. This discount encouraged consumers to go into a local store and scan an item. Consumers could then buy the product from Amazon, who would discount the product accordingly.

For most consumers, this was likely seen as an exciting offer. Many merchants, particularly local ones, found this practice extremely angering. Why? Amazon was ostensibly using their storefronts as showrooms, taking advantage of these “brick and mortar” locations to sell their wares.

To look at it another way, while technology may be making things easier for the consumer with these savvy applications, they could also very easily be creating a serious reputation problem for Amazon.

Think of it as the “Wal-Mart-ization” of the massive online retailer.

Amazon has historically had a wonderful reputation: a good place to work, great customer service, high-quality products and fast shipping. But with tactics such as this, they risk being seen as the “big kid on the block,” bullying the little guys and potentially putting them out of business.

Fifteen years ago, Barnes & Noble and Borders muscled their way into markets across the country and were largely blamed for the death of local bookstores. Today, Borders is gone and B&N is gasping for air. Amazon is seen as the reason for their struggling businesses.

Most consumers, however, don’t have emotional attachments or a vested interest in making sure these large companies stay afloat, the way they do for small, locally-run stores.

By encouraging consumers to take advantage of these storefronts (as nicely highlighted in this San Jose Mercury News article) Amazon is playing a dangerous and, possibly ill-advised chance with their corporate citizen reputation.

It may be wise for them to think through the possible negative results of their actions before they do damage that can’t be easily undone.