The Showroom Effect and Local Retail Fighting Back Against Amazon
The recent move by Amazon to offer $5 for retail shoppers to buy online felt like kicking a man twice when he was already down to a lot of retailers. Many merchants were already concerned about being used as a glorified showroom for Amazon’s Jeff Bezos before this recent move with speculation that many were missing their numbers because of Amazons mobile price check application.
Here at ShopSavvy we love local merchants. Our users want to know what all their options are both online and local presented in a neutral and unbiased way— not just merchants in Amazon’s marketplace. They want this presented without favoritism so they can make good buying decisions about product selection and where to buy. Buying from Amazon is great and for many habitual, but did you know in our system they are the lowest priced choice only 7% of the time? If you buy from Amazon, you are not always getting the best deal and they certainly don’t work to get you local options.
Even when the price is lower online, our users often want to see what their local options are, either for immediate gratification or because they love the relationship they have with their local retailer. In the long run we believe a balanced ecosystem of strong local retail with efficient online options is healthiest and this is what we strive for.
So while local stores have had a really brutal few years, this is going to change in the next few years as they get new opportunities to fight back. In fact, we think current shopping experience for local retail is going to be transformed significantly in the next 3-5 years. The mini computers people are carrying in their hands now are just using things like reviews, purchasing and price comparison as an early beachhead. In a few years the way you shop locally will be completely different.
Why? Whole new conversations will be starting between brands, retailers and shoppers will transform retail and the shopping experience making it more connected (with friends/family), informed and enjoyable. This will dramatically improve the local shopping experience and give local merchants new ways to offer value relative to online options that may not be readily apparent now.
Consumers are open to new sorts of conversations with retailers that are not happening now. For example, currently most conversations between retailers and consumers now are what I call “One to Many”. If you offer a sale, it’s often to large groups of people and there is very little segmentation or targeting. With these new technologies based on loyalty data, buying patterns, and strategies such as competitive couponing, consumers will start to have one to one conversations with retailers.
The last decade or so has not been a great one for local retailers, but the tide is changing with advances in technology. Ironically, the technology that is causing pain for local retailers now, will offer new opportunities in the future. For the those retailers that embrace this change, and get ahead of the curve, we believe it’s a competitive opportunity to recapture some lost ground and create a better shopping experience for shoppers. This takes courage not to stick your head in the sand while Amazon steals your lunch.
To that end, if you are a local retailer that is looking to find ways to start new conversations with consumers in your stores—reach out to us –we’re listening and open to new ideas to help local merchants. Amazon doesn’t have the last word here, this is just the beginning of what technology can bring to local.






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If you check out the sample lists included in ShopSavvy you will see one called ‘Hot Food‘. It includes a number of cookbooks and cooking gear by 
Developers with qualified applications can use the fourth row AdOns to promote their applications. Sold on a pay-per-download model we only present your app to users who would actually be interested in downloading your application. Displayed as an option in the ‘fourth row’ of ShopSavvy our program is available on iPhone and Android. We can’t guarantee millions of downloads, but we can guarantee your app will only be presented to users when it is relevant to their current activity. In the past we have experimented with paid download programs with limited success. Even the best program only yielded one actual user per 16 downloads. We believe our targeting will result in REAL users who actually want and need your application.



