Print 43 comment(s) - last by bah12.. on Sep 24 at 11:26 AM

Competition between the two has come to this

Wal-Mart reported that it will no longer sell Amazon's e-readers and tablets online or at its brick-and-mortar stores.

Amazon, which makes Kindle e-readers and Kindle Fire tablets, had its products booted from Wal-Mart due to the fact that Amazon is a strong competitive force against brick-and-mortar stores.

Physical retail stores like Wal-Mart and Target have faced tough competition against Amazon in recent years. The huge e-tailer has offered the same products at lower prices, (often) no sales tax and for fast, cheap delivery.

This obviously made it hard for the brick-and-mortars to compete. Stores like Best Buy, Wal-Mart and Target complained that Amazon's lack of sales tax collection in most U.S. states was unfair, leading to more and more states demanding that Amazon start collecting (mainly to cover the states' own budget crisis').

At long last, Wal-Mart and friends got their wish when Amazon agreed to start including sales tax in customer orders; however, the e-tailer did so in exchange for more distribution centers throughout the U.S. so that it could launch a same-day shipping feature -- a whole new competitive edge in favor of Amazon.

To top it all off, Amazon's e-readers and tablets have been a hit. In fact, Amazon's Kindle Fire tablet has been the only other tab to take a chunk out of the iPad's market share.

Amazon just announced a whole new generation of Kindle Fire tablets (Kindle Fire HD), including an updated $199 7-inch Fire; an 8.9-inch version for $299, and a 4G LTE model for $499. On top of that, Amazon is offering 250MB of bandwidth per month, 20GB of cloud storage space, and a $10 in Appstore credit for only $50 per year.

It's easy to see why Wal-Mart is a little upset. It's competition is growing and offering even better offers all the time, leaving the brick-and-mortars in the dust. But there is another side to this -- the Kindle Fire was the hottest holiday gift in Q4 2011, racking up tons of sales for not only Amazon, but the physical stores like Wal-Mart too. With the Kindle Fire HD line launching either September 14 or November 20, Wal-Mart could lose out on the huge sales that these tablets could potentially draw. 

Target stopped selling the Amazon Kindle line this past Spring as well.

Source: Reuters

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RE: Duh
By semiconshawn on 9/21/2012 2:24:06 AM , Rating: 1
Great but the Acer monitor doesnt take away sales from Wal mart as soon as you open it and start using it. Really you dont get it? but you can still type? amazing.

RE: Duh
By MadMan007 on 9/21/2012 3:38:09 AM , Rating: 4
You're right, you have to open it then start the web browser on that PC for it to take sales awat from Walmart.

RE: Duh
By BillyBatson on 9/21/2012 3:59:59 AM , Rating: 2
He is right... Because when you open that browser and choose a shopping portal you're making that conscious choice while the kindle helps make the decision for you... Shoppers are guilable and often the first thing you see or site you see it on ends up being chosen.

RE: Duh
By Cypherdude1 on 9/21/2012 12:33:02 PM , Rating: 2
Wal-Mart doesn't really have anything to complain about. They occupy the low-end niche. You go to Wal-Mart to buy inexpensive goods and the lowest prices. Wal-Mart does not have the largest selection of books. Whenever I build a new PC system, I don't go to Wal-Mart. I am very particular about which components I use when I build a new system. Wal-Mart is not going to have them. I only use the best components. Only Amazon, Newegg, and Tiger Direct will have them.

Amazon also has free 2 day shipping which Wal-Mart does not have.

RE: Duh
By Noya on 9/22/2012 8:41:02 PM , Rating: 2
Amazon also has free 2 day shipping which Wal-Mart does not have.

When did they start that?

I haven't used Amazon in a few months, and the last time I did it was free shipping over $25 and it took 9-days to get my order (and I live on the I-5 corridor). The cheapest pay option was 3-5 day for $5-7.

RE: Duh
By bah12 on 9/24/2012 11:26:55 AM , Rating: 2
With Amazon Prime it is free, and overnight is $4 per item. If you do much shopping at all on Amazon, and need fast delivery it is a pretty easy sell for $70/year. Not to mention the other perks, such as movies and storage.

But you are correct Amazon quickly loses it's appeal if you don't have Prime.

RE: Duh
By Kenenniah on 9/21/2012 3:33:59 PM , Rating: 2
The real question is how much will Walmart not selling Kindles will affect the overall sales. Where a user purchases a Kindle from won't change how they consume content with the device, so unless this drastically influences the total number sold Walmart is purely losing money by not getting anything from the sale of the device itself.

It all depends on how many sales of Kindles would have been created by consumers just happening by the product at the store. Anyone that already knows they want a Kindle would have no problems just ordering from Amazon.

“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls

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