"Amazon hasn’t dominated the clothing industry yet. Here’s why" (AMZN)

From MIT's Technology Review:

After books, movies, and groceries, Amazon has announced it’s tackling the last and toughest bastion of retail with Personal Shopper by Prime Wardrobe.

So, it’s like Stitch Fix? What Amazon is trying to do is a lot like the model of the $2.7 billion personalized clothes-shopping startup. And given the size of the opportunity, it makes sense. As Stitch Fix CEO Katrina Lake said on a recent episode of the podcast Recode Decode, Americans still buy 80% of their clothes at physical stores—despite the fact that malls are fast becoming artifacts and shopping online is the norm. 

Er, remind me what Stitch Fix is? Users take a survey identifying clothes and styles that appeal to them, with consideration given to their lifestyle and budget. The company analyzes this info and sends you a corresponding, curated box of clothes and accessories that you might like, for $20. Keep (and pay for) what you like; send back what you don’t.

The twist: Amazon’s version will also involve a survey of what you like and don’t like, which is sent along to a stylist who finds items you might be into. But there are differences: Amazon is charging a flat fee of $4.99 a month for Prime customers (versus $20 per box for Stitch Fix), and customers can see what’s in the box before it’s sent—a tactic meant to reduce returns. If you do want to send something back, you’ve got seven days and a resealable box, plus a prepaid label.

It’s still very new. It’s only available to women for now, though Amazon promises a men’s version soon. Brands include Theory, 7 for All Mankind, Adidas, Stuart Weitzman, and more....

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