Amazon lockers coming to Staples
In order to avoid obscurity from providing only office supplies, Staples works out a deal that gives it a revenue boost and possibly a new customer or two.
According to Reuters, the lockers will soon appear at Staples locations across the United States.
Once installed, customers will be able to ship their products to Staples stores instead of having them shipped to their home or apartment. While the latter may seem more convenient, the locker concept was designed for those who may not be home to receive the delivery.
This might sound like a risky move for Staples, since it could theoretically drive down prices and encourage consumers to use Amazon more often. But the lockers may be a sneaky effort by Staples to win market share, since it could acquire an Amazon customer or two in the process. At the very least, Staples will receive a fee for allowing Amazon to place lockers in its stores.
It is unclear what Amazon hopes to gain from the deal. The company's lockers are typically placed in stores that are open 24 hours a day, such as 7-Eleven. This made sense because it allowed customers to pick up packages at any time. It also made sense from a competitive standpoint. As a convenience store, 7-Eleven does not compete with Amazon. They may sell some of the same items, but the customer base is vastly different. And it's not as if Amazon can ship a Slurpee or Big Gulp through the mail.
By coming to Staples, Amazon is attempting to expand its retail presence without actually opening a brick-and-mortar location. Some speculate that the company could accomplish this task (and make a ton of money) by acquiring Best Buy (BBY), but Amazon does not seem to be interested in acquiring another retailer. If it did, it could open the door for another competitor to rise up and offer lower prices by avoiding the extra costs that come with managing a physical retail outlet.
Amazon and Staples have yet to provide any commentary on the deal.
More from Benzinga
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
New study finds members of this global elite are stashing an average $600 million each in cash -- 10 times more than a year ago.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.