Here's why Buy for Me is the key to Amazon's retail growth, and not building more physical stores

Amazon can grow and become even more dominant by forming relationships with other retailers.

In the US alone, Walmart operates over 4,600 stores, Kroger 2,750 stores; and Costco Wholesale 627 stores. In total, there are over 564,000 physical retail locations in the US operated by thousands of retailers. Building stores isn’t the answer for Amazon. Rather, it's initiatives like Buy for Me.

So says Brittain Ladd, a supply chain consultant and former Amazon executive.

Buy for Me is currently live in the company’s shopping app on both iOS and Android for a subset of US customers. It will begin testing with a limited number of brand stores and products, with plans to roll-out to more people and incorporate more brand stores and products based on feedback.

In a LinkedIn post, Ladd argues that Amazon grows by enabling other retailers to sell more products. Also providing 3PL services to manage supply chains and logistics for other companies. By leveraging its combined technology to act as a real-time control tower matching customers with products. And by tapping its expertise in AI to become a personal shopper and simplify the purchase process. Amazon clearly understands this, hence the reason why it has created and released Buy for Me.

This helps customers discover and seamlessly purchase products from other brands' sites if those items are not currently sold on Amazon. If they want to buy the product not available on Amazon, they tap on Buy For Me and are taken to a checkout page where they confirm the order details. Using AI, Amazon will make the purchase on behalf of the customer.

Ladd says: "What Amazon has built is the ability to connect all retailers to its ecosystem. In my opinion, I believe its long-term strategy is to reduce its focus on retail and instead, leverage retail stores that are owned and operated by other retailers. In turn, it will leverage its advanced fulfillment and logistics capabilities to manage logistics for other retailers including the fulfillment of online orders."

"Why will Amazon do this? Because not owning stores significantly reduces its SGA and operating expenses. Providing logistics services maximises the utilisation of its logistics facilities. Now owning inventory frees up billions in working capital."

He adds: "Still don’t get it? What Amazon will transition into is the Airbnb of retail. It will becone the dominant company in retail by providing a platform and logistics to match supply with demand, and enable the transaction."

"For example, instead of building thousands of grocery stores, Amazon will become the go to platform for buying groceries. AI will identify the best retailer for fulfilling the order and Amazon will deliver the order. It takes a percentage.”

“Groceries are a $1 trillion business. Amazon only controls 2% market share. It will generate more revenue enabling consumers to buy groceries, and enabling other retailers to sell groceries, than it can generate operating as a grocery retailer and owning stores. Buy For Me allows Amazon to get one more step closer to its goal."

2025 RTIH INNOVATION AWARDS

Physical stores will be a key focus area at the 2025 RTIH Innovation Awards.

The awards. which will open for entries in March, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.