Kohl’s began selling Amazon products like the Echo Dot in 2017 and now sells the rest of the etailer's products in 200 stores. From there, the relationship has evolved into an ambitious cross-channel logistics collaboration. The returns program is simple: Amazon customers can drop off their returns for free at Kohl's. The store handles packaging and logistics.
Amazon wants to have a brick-and-mortar presence to better facilitate a free and easy return experience. Omnichannel ecommerce company Radial found that 51% of US digital buyers said they avoid purchasing goods from online retailers that do not offer free returns. And digital consumers were most hesitant about the return process for clothing and accessories. Clothing is Amazon’s second biggest category, so it’s important to allay concerns about shopping online for clothes.
With Amazon products on Kohl’s shelves, the ecommerce giant can also take advantage of impulse shopping. According to retail solutions firm Field Agent, 65% of shoppers said they make fewer impulse purchases online vs. in-store. Another study by new-product analytics firm First Insight found that both males and females were more likely to make unplanned purchases in-store vs. online. Impulse shopping helps both retailers, but Amazon would benefit from the prospect of conveniently located Fire TV Sticks catching shoppers’ eyes.