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Mattress start-up doubles down on Amazon relationship for store success

8/1/2017

Amazon is extending its brick-and-mortar brand exposure, once again — albeit in an unconventional way.



Mattress retailer Tuft & Needle will open its newest store in October, in Seattle. And the self-funded specialty retailer is relying on Amazon’s technology and services to drive its success, according to ReCode.



Tuft & Needle already has 25% of its sales filtering through Amazon. To keep up the momentum, the startup is outfitting its newest location with other Amazon-branded solutions, including tablets where customers can read product reviews found on Amazon; Alexa-powered Echo devices that answer customer questions, and QR codes that enable one-click purchasing through the Amazon app, the report said.



Initially, customers who order at the new Seattle store will receive one-day shipping through Amazon Prime, if they are members. Looking ahead, the company also hopes to integrate two-hour deliveries through Amazon’s Prime Now service, the report said.



Tuft & Needle operates three other locations in Phoenix, Scottsdale, and San Francisco. The retailer tested two-hour Prime delivery in its Phoenix location, a move that not only boosted sales by 50%, but also prompted Tuft & Needle to offer two-hour Prime delivery in all three locations, according to Mashable.



Daehee Park, Tuft & Needle’s co-founder said in ReCode’s report, “We’ve had a lot of internal debate about this since the beginning: The approach to resist Amazon as a force and see how we can go head-to-head against it. But where we’re at right now, we’ve decided why not just embrace them. It is the future of retail and e-commerce. We focus on what we’re good at, and plug in Amazon technology for the rest.”



Tuft & Needle is joining a growing list of brands, such as Nike and Sears, that recently decided to join forces with Amazon rather than compete with the online retailing giant. It is a strategic move that benefits both Amazon and Tuft & Needle.



Besides giving the mattress retailer a leg up on its primary competitors which also sell through Amazon’s Launchpad, the joint effort will help Amazon get a stronger hold in the home furniture category, Mashable said.
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