But is that all there is to it?
Amazon, which opened a 3D Printer Store on its site to much acclaim in 2013, could be experimenting with a bigger concept: 3D printing is about changing the supply side of the retail business model as much as the demand side. In other words, 3D printing is not just about offering more and more consumer goods in more and more categories so that Amazon can make more and more money (although that is surely part of it). It could be that it’s about transforming the online retail model based on our changing notions of scarcity — scarcity of product as well as scarcity of shelf space – in the digital world.
In the current retail model, Internet retailers such as Amazon stockpile products, store them in a warehouse, and then deliver them once a customer orders them as quickly and cheaply as possible. Amazon has an edge over traditional retailers (i.e. mom-and-pop book stores) because it can offer more products with nearly unlimited shelf space, thereby driving down the price of its products for consumers. Instead of spending money on costly brick-and-mortar locations, Amazon can focus on increasing the efficiency of its warehouse operations in order to increase its margins on the sales of physical products.
In the new model, though, 3D printing could be used to deliver a just-in-time retail experience, in which Amazon wouldn’t need to maintain a network of warehouses around the country filled with products, and wouldn’t need to invest in drones to deliver those products. Theoretically, one day Amazon might just sell the design file for a product, and the consumer would print the design file at home with a 3D printer in the comfort of his or her living room. Presumably, these consumers would also be purchasing their 3D printers and 3D printer filament from Amazon’s 3D Printer Store.
Which is why Amazon’s new 3D printing pilot is so interesting. 3DLT, one of the five partners that Amazon has selected for the program, has hinted that the future is one in which users simply upload or download 3D design files and print them out with 3D printers. Everyday consumer products, in short, will eventually follow in the wake of plastic toys and plastic jewelry. In this radically new business model, Amazon would be selling the 3D design files and the 3D printers and the 3D printer filament, but wouldn’t be selling actual “products” as we currently think about them. The consumers would print the products, not buy the products.
That being said, we’re already starting to see increasingly creative and innovative ways that 3D printing is being used these days. We are 3D printing parts for airplanes and cars. We are 3D printing houses. We are 3D printing human body replacement parts. From that perspective, it’s easy to see Amazon selling the design files for just about anything — both organic and inorganic — from an online storefront in the future. Just as Amazon transformed the retail shopping experience using the economies of scale made possible by the Internet, it may be able to use 3D printing to transform the retail shopping experience yet again.
Disclosure: Amazon chief executive Jeff Bezos owns The Washington Post.