I doubt Amazon is too concerned. I’d be shocked if physical sales (as opposed to ordering directly from Amazon) were at all substantial. And it’s hardly as if Amazon needs Wal-Mart or Target to be successful.
Frankly I’m amazed other stores carried Kindles at all. It’s hardly a screwup on Amazon’s part; the conflict of interest is pretty freaking obvious. “Buy this thing that will let you buy from another store instead of us!”
I think the big box and retail stores are beginning to resent their sales losses to Amazon. Some people go to Best Buy and try out the tv’s. Then buy the model at Amazon.
Really doesn’t make sense to make Amazon even more money by selling their Kindle.
I read advice all the time to go to a retail store to check out the Kindle, and then buy it from Amazon. I can understand why Walmart wouldn’t want to be the display showroom for another store.
Isn’t the problem that almost nobody buys a Kindle at these stores? The stores are basically just places to look at Kindle before ordering off Amazon, where they are cheaper (taxes) and come per-set up and linked to your account. I think all Kindles still come with free two-day shipping, and if not two-day shipping, it is still free.
You’re correct. The New York Times said that Target sent a letter to its vendors, “What we aren’t willing to do is let online-only retailers use our brick-and-mortar stores as a showroom for their products and undercut our prices.”
So I don’t know why you described this as a business screw-up on Amazon’s part.
Well, if Amazon discounted the Kindle’s wholesale price. Then Walmart and Target could sell just under Amazons web price. That way Walmart customers would buy it there.
Even $10 less at Walmart would be enough. Thats not going to hurt Amazon’s web sales and they get their product in all those stores. Heck doesn’t Walmart have 20 thousand or more stores?
Instead, it cost more at Walmart when you add in sales tax. Of course people bought off the web instead.
That’s the whole reason both places stopped selling them. All they were was show rooms for Amazon. People would come in to check them out, then go home and buy them from Amazon.
You know what Amazon should do? It should totally start a contractual obligation with someone that looks just like Wal-Mart, CostCo for example, and then then the middle of a business negotiation, it should totally breach that contract. Just to show them.
The real reason that WalMart stopped selling Kindles is because Amazon refused to put out. WalMart said that it had been business partners with Amazon since last spring and wanted to take their partnership to “the next level”. Amazon said it liked being business partners with WalMart but didn’t feel “that way” about the company. Things got ugly when WalMart brought up Amazon’s previous relationship with Target and accused Amazon of just forming a rebound partnership with them to make Target jealous.
To clarify, Amazon is going to start collecting California sales tax. Technically residents have always had to pay the sales tax, but I suspect in almost all cases didn’t.