Amazon’s Big Letdown

Amazon (NASDAQ:AMZN) has been conducting a little experiment to determine whether a system of storage lockers would be an efficient method for consumers to receive items purchased online instead of having items delivered to homes and offices. So far, the idea is not gaining traction.

Amazon has set up eight known locker locations in the Seattle area, including two on Amazon’s new South Lake Union campus. In addition, lockers have been reported in New York City and London. According to Amazon, the lockers can be located near ATMs, outside buildings, and in grocery stores.

Amazon will pay businesses a monthly fee to accommodate the storage space. 7-Eleven has agreed to the arrangement hoping that the system will boost business, but that additional traffic does not seem to be happening. Amazon has established a lot of potential locker space, but customers are not interested.

Eligible Amazon customers will see a local locker as an “alternate delivery address” at checkout. Usage has been limited to those eligible to test out the locker retrieval system. So far, criteria for eligibility is unknown.

Amazon had no comment on the locker system. However, the retail giant is still determined to expand the retrieval experiment even if people have not been using the lockers.

To contact the reporter on this story: Diallah Haidar at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com