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 kattanna on 9/21/2012 10:01:59 AM , Rating: 1
It is stupid to sell a product in your store that upon opening takes business away from your store

and how is the ipad any different? walmart isnt going to be getting any cut of sales from itunes or its app store now is it?

no different then the kindle. or any andriod tablet for that matter

Im always amused when I see amazon gift cards at stores

the key thing your not understanding here is the word GIFT in gift cards. When someone is buying a gift card for someone else there is a good chance that the receiving person will not be using said card in that store anyways. so why not make a little money off someone shopping elsewhere?

RE: Duh
By Old_Fogie_Late_Bloomer on 9/21/2012 12:39:40 PM , Rating: 2
and how is the ipad any different? walmart isnt going to be getting any cut of sales from itunes or its app store now is it?

Walmart doesn't sell iPad apps, and I don't believe music or movie sales make up a huge part of their overall revenue. People were going to buy an iPad somewhere, and they were still going to use iTunes; they might as well get it from Walmart.
no different then the kindle.

That's where you're wrong. Amazon competes with Walmart on almost every product Walmart sells, unlike the iTunes store. If you see you're getting low on diapers and you can grab your tablet and tap the screen a few times to order some, that's an indisputable lost sale from some B&M store...and let's face it, if you bought your Kindle from Walmart, you were probably buying diapers at Walmart, too.

Amazon sells food, clothing, televisions and other electronics, stuff for your home and's really insane that Walmart even started to sell a device that sucks you into the store of a direct competitor.

"If a man really wants to make a million dollars, the best way would be to start his own religion." -- Scientology founder L. Ron. Hubbard

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