Major retailers like Amazon and Walmart are now monetizing their proprietary capabilities by selling to other retailers as a service. Along with generating new revenue streams, they are also build their own learning through new data and shopper insights along with how other retailers use their capabilities.
Starbucks with Amazon cashier-free technology; Picture source: Forbes
Forbes (Feb’22) report gives examples of 6 retailers:
◊ “Walmart in August 2021 began commercializing its last-mile delivery platform GoLocal, a fulfillment service that provides white-label delivery for any business, from a neighborhood chocolate shop to a national chain. In October, Home Depot signed up as GoLocal’s first client, followed by fashion retailer Chico’s.
◊ ThredUp is reselling its resale platform and related in-house technologies. Its “Resale-as-a-Service” is ready-to-wear, with included product inspections, fulfillment, price analysis and listings to identify the best-fit buyers. The RaaS’s growing list of customers includes Madewell, Athleta, LG, Adidas, Everlane, Hollister and Rent the Runway.
◊ Amazon in 2020 began selling its cashier-free technology to retailers so their customers can bypass the checkout lanes in stores, just as shoppers do in Amazon Go locations. The bundled tech, called “Just Walk Out,” is now installed in retail settings in Starbucks (in New York), Hudson Nonstop airport stores, TD Garden MRKT Stores (a Boston stadium) and at the supermarket giant Sainsbury’s (UK).
◊ Macy’s, Lowe’s and Kroger are selling ad placement on their own websites, apps and other digital platforms, using their in-house shopper data as the selling point. These retail media networks are attractive because the outsourced data is expected to more accurately reach target customers, delivering a higher return on marketing dollars.”
Interesting to see competitors working together to build new business models