Wal-Mart Gives Amazon Kindle Products the Boot
September 20, 2012 11:55 PM
comment(s) - last by
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.
This article is over a month old, voting and posting comments is disabled
9/21/2012 3:33:59 PM
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.
"Game reviewers fought each other to write the most glowing coverage possible for the powerhouse Sony, MS systems. Reviewers flipped coins to see who would review the Nintendo Wii. The losers got stuck with the job." -- Andy Marken
Amazon Reveals $299 8.9" Kindle Fire HD, $499 LTE Model with $50 Yearly Data Plan
September 6, 2012, 2:05 PM
Amazon Kindle Fire Sold Out, Alleged Image of Next Generation Tablet Leaked
August 30, 2012, 2:35 PM
Amazon to Offer Same-Day Delivery, Could Pummel Brick-and-Mortar Retailers
July 12, 2012, 12:33 PM
Amazon to Collect Sales Tax in New Jersey Beginning July 1, 2013
May 31, 2012, 3:31 PM
T-Mobile CEO John Legere is on the Warpath Again; Introduces $100, 10GB Family Plan
July 28, 2014, 10:12 AM
Report: All 15" MacBook Pros to Receive 16GB RAM Standard Starting Tomorrow
July 28, 2014, 8:12 AM
Sony's Xperia Z3 Gets Detailed in Leaked Photos
July 25, 2014, 2:30 PM
Heavy Users of Verizon’s “Unlimited” LTE Data Could Soon See Targeted Throttling
July 25, 2014, 1:52 PM
Motorola Moto X+1 Makes Appearance in Leaked Photos
July 25, 2014, 12:06 PM
Sony Finally Adds 3D Blu-ray Support to PS4
July 24, 2014, 3:44 PM
Most Popular Articles
JJ Abrams Unveils X-Wing Starfighter for New "Star Wars" Movie
July 21, 2014, 12:24 PM
Ford Details ’15 F-150’s 325hp, 2.7L EcoBoost V6; Demonstrates 732-lb Weight Loss
July 22, 2014, 6:55 PM
Comcast Memo: Harassing Customers During Retention Calls Actually IS Our Policy
July 22, 2014, 5:19 PM
Kindle Fire Phone Review Roundup -- A Solid "Meh"
July 23, 2014, 2:09 PM
Motorola Moto G Successor Reportedly Uncovered, Moto X Discounted by up to $75
July 21, 2014, 1:11 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information