Amazon is much more than just an eCommerce platform where customers can buy products. On top of endless items, Amazon frequently expands its business into services, too, like video streaming and book rentals.
If you have been an Amazon customer for several years, you may have remembered Amazon Local. But, what was Amazon Local, and why doesn’t Amazon have the service anymore? I was curious about the same thing, so here is everything I discovered about it through my research!
What Was Amazon Local?
Amazon Local was a daily deals service that targeted a customers’ specific area code, offering discounts on vacations, dining, entertainment, food carryout in some locations, and much more. Amazon Local failed because it wasn’t profitable, and the daily deals industry was dying. Amazon launched the service in 2011 and closed it on December 18, 2015.
If you want to learn more about Amazon Local, if its failure impacted Amazon, whether or not the closure came as a surprise, and if Amazon Local Selling is the same thing, keep on reading. I have looked into everything you need to know!
When Did Amazon Launch Amazon Local?
Amazon launched Amazon Local in June 2011 in the form of a mobile application for smartphones as well as a website.
What Company Did Amazon Local Partner With?
To help ensure Amazon Local had the proper infrastructure to operate efficiently, the company bought famous Washington-based daily deals company LivingSocial.
That said, LivingSocial was very similar to Amazon Local, so it was more straightforward to implement its software into Amazon’s platform.
Why Did Amazon Local Fail?
There were a few reasons Amazon Local failed and was forced to shut down. For example, the most obvious reason is that the service was not making enough of a profit to stay open.
With that, it simply did not make any sense for Amazon to continue operating Amazon Local because it was not making considerable profits.
On top of that, the industry in which Amazon Local conducted business was failing as a whole. At the time, LivingSocial laid off 200 people, and Groupon laid off over 1,000 employees.
Therefore, the daily deals business wasn’t as lucrative as it once was, and the industry was starting to lose steam.
Finally, Amazon continued to offer occasional deals on its main website in the form of the Deal of the Day, Gold Box Deals, and Kindle Daily Deals.
So, even though Amazon Local wasn’t going to offer any more savings, Amazon still presented ways for customers to save some money.
Did Amazon Local’s Failure Come As A Surprise?
No, when Amazon Local failed, it did not come as a surprise, mainly because other companies in the daily deals industry were also dying at the time.
As previously mentioned, both Groupon and LivingSocial were forced to lay off employees because the companies were not making as much money.
Additionally, Groupon decided to switch its business focus away from daily deals in order to stay afloat.
Still, Amazon representatives stated that the company learned a lot from the venture and planned to apply those lessons to future business decisions.
When Did Amazon Shut Down Amazon Local?
Amazon officially shut down its daily deals service Amazon Local on December 18, 2015. Still, Amazon allowed any deals purchased before the closure to remain active after the company closed.
Where Was Amazon Local Available?
The Amazon Local service was available in about 40 markets across the United States. As you can see, it wasn’t a massive operation, so the company didn’t lose too much money by shutting it down.
How Much Did Amazon Local’s Failure Impact The Company?
In the long run, Amazon Local shutting down did not really impact Amazon that much because the company is one of the most profitable companies in the world.
Also, Amazon frequently tries out new business ventures to better compete in different industries beyond its eCommerce platform. On top of that, Amazon Local wasn’t the company’s primary source of income.
Are Amazon Local And Amazon Local Selling The Same Thing?
If you sell products on Amazon, you may have seen a service called Amazon Local Selling. However, Amazon Local Selling and Amazon Local are not the same things.
With that, Amazon Local Selling is for third-party sellers and small businesses that are selling products through Amazon’s platform.
As previously mentioned, Amazon Local was a daily deals service targeted to a customers’ local area.
What Is Amazon Local Selling?
Amazon Local Selling gives small businesses access to order tracking solutions that make local deliveries and in-store pick-ups more accessible for customers.
With that, Amazon Local Selling offers a business’s products to Amazon customers who live within a 25-mile radius and specific zip codes close to the retail stores or warehouses.
Additionally, this service is available for select sellers that provide delivery services and “buy online pick-up in-store” (BOPIS).
With Amazon Local Selling, customers receive up-to-date messages about delivery options, order timing and processing, and pick-up locations to help business orders be more streamlined.
How Does Amazon Local Selling Work?
Small business owners must apply and submit an application to use Amazon Local Selling.
Then, someone from the Amazon team contacts the business if they are approved to launch their products and inventory on the site.
After a company gets approved, they must prepare orders for home delivery or in-store pick-up and fulfill the orders.
When it comes to providing customer delivery updates, the Amazon Local Selling technology handles that end of the business.
Amazon Local was a daily deals service that was targeted to a customers’ specific area code similar to Groupon. That said, the daily deals were for services in industries like music, entertainment, and dining.
Moreover, Amazon Local failed because the daily deals industry was failing as a whole at the time, and Amazon was not making enough money to continue operations.