Reading time: 3 minutes

Tech disruptors thrive on creating a new market for a product with a view to disrupting an existing market. The media describes tech-driven businesses as innovative, bold and revolutionary. So why then has online retailer Amazon decided to open its first bricks and mortar store, with further plans to open between 300 to 400 more retail stores. A move that seems counter-intuitive at first blush may, in fact, forge a new path for the next generation of tech disruptors. Below, we look at why and ask whether Australian retailers may adopt a similar move.

The Rise of Amazon

First established as an e-commerce and cloud computing company in 1994, Amazon has continued to diversify its product offerings to now be considered the largest internet based retailer in the United States. Although, virtually no corner of the world is left untouched with their international shipping offer and competitive rates. 

Amazon’s rise forced small independent bookshops to close up shop. Despite the recent failure of other large bricks & mortar retailers, in November 2015, Amazon opened its first physical store in Seattle, Washington State. There are plans afoot to open between 300 to 400 more stores across America shortly.

But what makes Amazon so sure this move will succeed where others have failed before them, largely at the hands of Amazon and its tech disruption?

Data Collection

Since it inception, Amazon has used its online platform to collect data from every customer including: 

  • The customer’s age; 
  • The type of product the customer purchased; and 
  • The geographical region where it was purchased.  

In short, Amazon has 22 years of data mining and solid market research that they can exploit to open physical stores. In practical terms, this aids Amazon with selecting their preferred location in a popular suburb for each new store, and to stock the store with items that they know potential customers in that location will like. Amazon is confident that they can use this data to attract customers and avoid the old stock that doesn’t sell by tailoring the products they stock. 

Low Prices

Having already disposed of many of their competitors over the past 22 years of online trading and tech disruption, Amazon are now large enough to negotiate deals with publishers and keep their overheads low.

Select Stock

In addition to the data collection, Amazon’s online review system will assist the Company in identifying popular books and there is a plan to only stock the bricks and mortar stores with books holding an average customer review of at least 4 stars.

Trend Setters

In the United States, stores such as Bonobos menswear and Birchbox cosmetics have also recently moved their e-commerce operations to bricks and mortar stores, after first creating a market online.

This raises the question as to whether Australian online retailers will also attempt the move. Could we see online stores such as and open a physical space and add to their already impressive online sales? LegalVision will closely watch this space and keep you updated!


Tag us on Twitter @legalvision_au and let us know what you think or ask our online business lawyers on 1300 544 755.


Redundancies and Restructuring: Understanding Your Employer Obligations

Thursday 7 July | 11:00 - 11:45am

If you plan on making a role redundant, it is crucial that you understand your employer obligations. Our free webinar will explain.
Register Now

How to Sponsor Foreign Workers For Your Tech Business

Wednesday 13 July | 11:00 - 11:45am

Need web3 talent for your tech business? Consider sponsoring workers from overseas. Join our free webinar to learn more.
Register Now

Advertising 101: Social Media, Influencers and the Law

Thursday 21 July | 11:00 - 11:45am

Learn how to promote your business on social media without breaking the law. Register for our free webinar today.
Register Now

Structuring for Certainty in Uncertain Times

Tuesday 26 July | 12:00 - 12:45pm

Learn how to structure to weather storm and ensure you can take advantage of the “green shoots” opportunities arising on the other side of a recession.
Register Now

Playing for the Prize: How to Run Trade Promotions

Thursday 28 July | 11:00 - 11:45am

Running a promotion with a prize? Your business has specific trade promotion obligations. Join our free webinar to learn more.
Register Now

Web3 Essentials: Understanding SAFT Agreements

Tuesday 2 August | 11:00 - 11:45am

Learn how SAFT Agreements can help your Web3 business when raising capital. Register today for our free webinar.
Register Now

Understanding Your Annual Franchise Update Obligations

Wednesday 3 August | 11:00 - 11:45am

Franchisors must meet annual reporting obligations each October. Understand your legal requirements by registering for our free webinar today.
Register Now

Legal Essentials for Product Manufacturers

Thursday 11 August | 11:00 - 11:45am

As a product manufacturer, do you know your legal obligations if there is a product recall? Join our free webinar to learn more.
Register Now

About LegalVision: LegalVision is a commercial law firm that provides businesses with affordable and ongoing legal assistance through our industry-first membership.

By becoming a member, you'll have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal assistance your business needs, for a low monthly fee.

Learn more about our membership

Need Legal Help? Submit an Enquiry

If you would like to get in touch with our team and learn more about how our membership can help your business, fill out the form below.

Our Awards

  • 2020 Innovation Award 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice Award 2020 Employer of Choice Winner – Australasian Lawyer
  • 2020 Financial Times Award 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year Award 2021 Law Firm of the Year - Australasian Law Awards
  • 2022 Law Firm of the Year Winner 2022 Law Firm of the Year - Australasian Law Awards