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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 Old_Fogie_Late_Bloomer on 9/21/2012 1:55:51 PM , Rating: 2
quote:
All of you people making claims like the moron I've just replied to are utterly bereft of any higher reasoning skills.

Wow, somebody's having a bad day. :-(

When your Dell laptop hits the Windows desktop, there's no big button in the middle of the screen that loads right into Amazon's store, is there? You have to open a browser, do a Google search or type in a URL, and you have to choose which store you actually go to. Maybe you go to Amazon, maybe Newegg, maybe Walmart.

When you start up an Android tablet, sure, there's a link right there for Google Play. Likewise the iPad gives you access to iTunes. And Walmart doesn't care about Google Play or iTunes, because you're not buying diapers from Google. You buy music, movies, e-books, and apps. These things aren't threatening Walmart's core business.

When you fire up a Kindle, there's Amazon's store, right there. And it does sell diapers. It sells a lot of things that Walmart sells. And it's easier than going to Walmart. You can have a card saved, you can hit the one-click pay option or whatever, and your stuff is on your doorstep in a few days. That threatens Walmart's core business in a way that is fundamentally different from a laptop, iPad, or other Android tablet.

But hey, I know it can be hard to think straight when you're having a bad day, so I don't blame you for having trouble understanding the distinction.

Walmart understands it, though, which is why they're no longer selling devices that actively funnel their customers to their competitors.


RE: Duh
By TakinYourPoints on 9/21/2012 3:34:16 PM , Rating: 1
quote:
Wow, somebody's having a bad day. :-(


Standard motoman, angry and stupid. Don't mind him.

Your post has some good points. Another thing to note is that the Kindle by default has ads on the lock screen. A big reason Amazon is selling Kindles either at cost or at a loss is because the device is basically a portable billboard for the Amazon and all the goods it sells.

There is a big difference between a laptop or standard tablet, and something like the Fire that basically says "BUY THESE THINGS" when you look at the lock or home screen.


RE: Duh
By Kenenniah on 9/21/2012 3:43:13 PM , Rating: 3
People do understand the distinction. The problem is you don't see the other side of the coin. It could go either way. Anyone that wants a Kindle will buy one regardless of whether Walmart sells them, and will consume content through the device exactly the same no matter which store they buy it from. In this case the loss to Walmart's sales caused by consumption through the device is the same except they gain nothing from the sale of the device itself.

The flip side is the consumers that would not have bought a Kindle if they didn't happen by it at Walmart. In those cases Walmarts decision not to sell the Kindle helps them. Whether this happens enough to truly affect the overall sales of Kindles is anyone's guess at this point. The bottom line is this decision could either help or hurt Walmart, and both opinions have a shot at being correct


RE: Duh
By Old_Fogie_Late_Bloomer on 9/21/2012 4:48:48 PM , Rating: 2
quote:
People do understand the distinction.

I understand the distinction, you apparently understand the distinction; the guy I was replying to clearly did not understand the distinction.
quote:
The problem is you don't see the other side of the coin. It could go either way.

I do see the other side of the coin; I just think it's much more likely that Walmart will be better off not selling the Kindle. In fact, I'm sure they hope everyone will follow suit, and the Kindle won't be widely available in B&M stores.
quote:
Anyone that wants a Kindle will buy one regardless of whether Walmart sells them, and will consume content through the device exactly the same no matter which store they buy it from...The flip side is the consumers that would not have bought a Kindle if they didn't happen by it at Walmart.

I imagine there's a large segment of the population that didn't/wouldn't have any awareness of the Kindle Fire if it wasn't in B&M stores for them to see and interact with. There aren't any Amazon.com stores like there are Barnes & Noble stores and Apple stores. That's why they were being sold at WalMart.

If you shop at Amazon.com, you know about the Kindle Fire; if you have a Kindle Fire, you're probably going to shop at Amazon.com. If you don't have the former or do the latter, how does Amazon reach you? It's the classic Catch-22.

And if someone doesn't know enough about the Kindle Fire to go to Amazon.com, but they've sort of heard about it, and they go to Walmart looking for it, I'm sure an employee will be happy to redirect them to an iPad.

Believe me, I'm not sympathetic to Walmart. I go there for headlights, motor oil, and antacids. But I'm certain they did their math before making this decision. They didn't get to be the cancerous growth on the face of American retail that they are today by making unconsidered, impulsive, petulant decisions.


RE: Duh
By Motoman on 9/21/2012 5:39:14 PM , Rating: 3
quote:
When your Dell laptop hits the Windows desktop, there's no big button in the middle of the screen that loads right into Amazon's store, is there?


As a matter of fact, there just might be. The last few off-the-shelf PCs I've seen have had Amazon shortcuts right on the desktop.

But that's beside the point. Someone who wants to buy from Amazon isn't going to be dissuaded because there's not a giant Amazon button in the middle of their screen. Your assertion that somehow that person won't be able to figure out how to get to Amazon is laughable.

Also...are you sure that movies and music aren't part of Walmart's core business? Pretty sure they dedicate quite a bit of space to movies and music in their stores. And in their online store.

Speaking of their online store, you can access that from any device...like a Kindle. If you want to buy something from Walmart.com, not having a giant Walmart button in the middle of your screen isn't going to dissuade you from doing so.

Your "argument" is pathetic.


RE: Duh
By Old_Fogie_Late_Bloomer on 9/21/2012 8:09:22 PM , Rating: 2
quote:
As a matter of fact, there just might be. The last few off-the-shelf PCs I've seen have had Amazon shortcuts right on the desktop.

Screenshots or it didn't happen.
quote:
But that's beside the point. Someone who wants to buy from Amazon isn't going to be dissuaded because there's not a giant Amazon button in the middle of their screen. Your assertion that somehow that person won't be able to figure out how to get to Amazon is laughable.

Someone who isn't aware of Amazon isn't going to go to Amazon to buy things. Someone who hasn't historically made purchases online who gets slipped in by the back door 'cause now they're like, "Well, I want this e-book" are more likely to make more purchases after they make the first one.
quote:
Also...are you sure that movies and music aren't part of Walmart's core business? Pretty sure they dedicate quite a bit of space to movies and music in their stores. And in their online store.

They do not take up a significant portion of the floor space in the Walmarts in my area, but I can't speak for the whole of the US.
quote:
Speaking of their online store, you can access that from any device...like a Kindle. If you want to buy something from Walmart.com, not having a giant Walmart button in the middle of your screen isn't going to dissuade you from doing so.

I just figured out where the disconnect is. You're thinking like someone who is at least a little computer-savvy. Computer-savvy people already shop at Amazon. The whole point of selling tablets at Walmart isn't to reach you, or me. It's to reach your mom, or your grandmother, people who don't habitually make online purchases.
quote:
Your "argument" is pathetic.

The fact that you have to continue to resort to slinging personal insults really emphasizes how weak your position is.


RE: Duh
By TakinYourPoints on 9/22/2012 12:13:41 AM , Rating: 2
And now you've been introduced to two of the village retards, reclaimer and motoman. Cheesew1z would have made for the trifecta, but oh well.

Enjoy your stay!


"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad














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