, 6 tweets, 2 min read Read on Twitter
"Monro’s tire installation services available to customers who purchase tires online from Amazon and select the Ship-to-Store option"
here's my search for replacement tires for my Jeep vs the first tire retailer that came up on google
this is AMZN capturing top of funnel purchase intent for what has historically been an area less impacted by ecommerce: integrating a physical materials purchase with a related service, eg assembly or installation
tire stores dont make much margin anyway on tires themselves (10-15% gross profit margin?) & AMZN doesnt need to make any margin on tires - they want to capture as much data as possible on Prime member shopping habits & sell high margin ads against that data
For product/service bundles where product is majority of overall cost, if AMZN controls intent for where a consumer has related service work performed, AMZN effectively becomes a franchisor for a large amount of light industrial / retail real estate... "CAC is the new rent"
in the short term, existing tire manufacturers and tire service centers are accelerating share gains against any remaining mom & pops w/o a digital presence; in long term, seems like it will cede economics away from your core service business
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