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Walmart Abandons Amazon's Kindle Lineup

Soulskill posted about 2 years ago | from the clash-of-the-titans dept.

Businesses 104

New submitter kiriath writes "Walmart has followed Target in ceasing to sell the Amazon Kindle product line. This is not terribly surprising, since Amazon and Walmart are major competitors. From the article: 'The world's largest retailer, which has been trying to catch up to Amazon in online sales, said the decision was consistent with its overall merchandising strategy. ... Now, with two large chains no longer selling Kindle, speculation has grown that the dominant online retailer could open its stores where shoppers could try out and buy Kindles. Amazon "is a little bit of a Trojan horse" when the Kindle is sold in other stores, said Sucharita Mulpuru, retail analyst at Forrester Research. "They should have made this decision to not carry the Kindle a long time ago."'"

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No Surprise (5, Insightful)

oakgrove (845019) | about 2 years ago | (#41415575)

Huge multi-national discount chain doesn't want to sell a product the sole purpose of which is to get people to spend money somewhere else. News at 11.

Re:No Surprise (0)

Anonymous Coward | about 2 years ago | (#41415971)

Walmart sell iStuff, the world's most successful single vendor lock in environment. Guess that renders you utterly wrong.

Shame on you dimwits for modding the OP "Insightful".

Re:No Surprise (2)

jittles (1613415) | about 2 years ago | (#41416045)

Except that iStuff that you buy thru Apple is not a tangible good. As far as I know, Walmart only sells tangible goods. They sell books, which may compete with iBooks or Kindle mobi files, but most of AMazon's products compete directly with Walmart. Very few of Apple's do.

Re:No Surprise (1)

justcauseisjustthat (1150803) | about 2 years ago | (#41416063)

But Apple doesn't sell clothing, furniture, kitchen appliances, drugs, food, etc....

Amazon sells everything that Target, Walmart, Kmart, Sears, etc , to sell a device that undermines your business is stupid!! It's like Apple selling Kindle app or Google youTube app or Amazon Mobile app, etc! Oh wait, never mind

Re:No Surprise (1)

UnknowingFool (672806) | about 2 years ago | (#41416149)

The profit on Apple products is hardware and accessories. This is not a huge surprise. They make some profit on content but not much. For the Kindle the reverse is true.

Re:No Surprise (1)

lister king of smeg (2481612) | about 2 years ago | (#41416597)

they also sell droid based units what is going on here is they don't want to sell a platform made entirely to act as a store front (that happens to also be able to play angry birds) for their on-line competitor. Apple doesn't sell anything but computers tablets phones and music players and digital downloads. wallmart sells everything so does amazon. All this will do is get amazon to sell the kindle, kindlefire at radioshacks and insert_mobile_service_provider_here store and staples.

Re:No Surprise (1)

hairyfeet (841228) | about 2 years ago | (#41416975)

Besides we recently saw more and more users are even bypassing the search engines and going straight to Amazon and the Kindle just makes that process that much easier.

What worries Walmart is the simple fact for goods you really don't need to try, blank DVDs or cans of soup or diapers or motor oil or books by your favorite authors Amazon is just too damned easy to use. Why should I go get in the truck, waste gas to drive to Wally world, fight the crowds, and go through all the BS along with higher prices when i could just sit on behind with a Kindle and order a pack of blank DVDs or whatever and have it dropped at my doorstep?

Hell since Wally World became just another ChinaMart between NewEgg, Tigerdirect,Steam, and Amazon the only thing I really buy there anymore is cold meds when my sinuses act up and the occasional bakery item. For everything else its just too easy to push a button and have it delivered.

Re:No Surprise (1)

zippthorne (748122) | about 2 years ago | (#41418085)

Why bother for the cold meds? The pharmacy counter of a typical drug store ( like cvs or walgreens) is a lot closer to the entrance, and much, much closer to your parking space, and the parking space is usually closer to your home. And the lines are usually shorter, too.

I can see the bakery items. They're usually a lot cheaper than you get at a real bakery, but the product is different, too. That box of sudafed is the same no matter where you buy it, so the prices are similar everywhere.

Re:No Surprise (2)

hairyfeet (841228) | about 2 years ago | (#41418759)

Because the Walgreen's here charges $7 a box for the same box I pay $2.50 for at the Wally world? And both are open 24/7 so its not like I have to go Walgreen's at 3AM.

So while I wouldn't mind a LITTLE markup, triple the fricking price? Even though I live just a block from the Walgreen's and 7 miles away from the Wally world I'll take Wally over Walgreen's any day of the week, that's just highway robbery.

Re:No Surprise (3, Interesting)

Sir_Sri (199544) | about 2 years ago | (#41416101)

Believe it or not Walmart is actually pretty good to deal with in that regard. If they can sell it at a profit they don't seem to care. Have a game that uses steam, or an item that connects you primarily to an online store that would cut walmart of the process? No problem, as long as the product in question can make money.

I bet walmart would sell amazon gift cards if they exist (I don't know if there are physical amazon gift cards like there are for itunes, if they exist they might just not be where I am in canada).

Walmart are assholes about commoditized goods, if your toaster isn't the cheapest toaster on the market, or you don't expect to sell a million of them they won't talk to you, or they'll demand you lower the price. And if you order 40 000 toasters to put in their stores they can change their mind if and leave you stuck with them. But if they think they'll make money on maps to the nearest costco they'd probably sell them to you.

Re:No Surprise (1)

gander666 (723553) | about 2 years ago | (#41416593)

Yes, there are Amazon gift cards. Physical cards. And I do believe I saw them at Walmart too.

Re:No Surprise (1)

Scorch_Mechanic (1879132) | about 2 years ago | (#41418477)

Correct. I have one.

Any idea what to spend a $25 Amazon gift card on that's not a video game, now that I have the "pleasure" of paying sales tax on it?

I mean really. What should I get? Ebooks? A life time supply of aglets?

Re:No Surprise (1)

thePowerOfGrayskull (905905) | about 2 years ago | (#41420439)

While some states may have different requirements, typically gift cards are not taxable sales.

This is because you potentially end up paying sales tax twice - once when you purchase the card, and then again when the card is used.

It's entirely possible that this is changing as legislators become aware of the tax loophole created when you sell gift cards for *other* companies (which may have locations in tax-free states, or be online-only) - but to my knowledge it's not happening in most states yet.

Re:No Surprise (1)

mysidia (191772) | about 2 years ago | (#41416189)

Huge multi-national discount chain doesn't want to sell a product the sole purpose of which is to get people to spend money somewhere else. News at 11.

That could have been money for Walmart, if they made a deal with Amazon, where Walmart would take a cut of the digital sales from units sold at their stores.

Re:No Surprise (1)

shentino (1139071) | about 2 years ago | (#41416653)

Hell still hot: Coca Cola refuses to let Pepsi sell soda in their office vending machines.

Hell still hot: Olympic games sponsored by Visa don't allow Mastercard to be used for paying concessions stands.

General principle: When you're playing on someone else's turf, you abide by their will, and if they kick you out anyway, tough shit for you.

Re:No Surprise (0)

Anonymous Coward | about 2 years ago | (#41416961)

Hell still hot: Coca Cola refuses to let Pepsi sell soda in their office vending machines.

Hell still hot: Olympic games sponsored by Visa don't allow Mastercard to be used for paying concessions stands.

General principle: When you're playing on someone else's turf, you abide by their will, and if they kick you out anyway, tough shit for you.

Oh contraire! Actually, Hell is COLD! Very, VERY, COLD!

And NO comforter for YOU!

Come, take my hand... I know the way... VERY WELL!!!

Affectionately, YOUR FUTURE LANDLORD!!!

Re:No Surprise (1)

zippthorne (748122) | about 2 years ago | (#41418091)

Wait.. aren't Visa and Mastercard both part of the same consortium?

Re:No Surprise (0)

Anonymous Coward | about 2 years ago | (#41420889)

Amazon doesn't need those retailers. That is exactly why they are getting banished from their stinky-bricks and-mortar competition. Amazon is going to own Wal-mart online, and Target. The fact that Wal-Mart thinks they can come close to Amazon in the digital space is a real snicker and turn.

Kindle is great for reading books (0)

Anonymous Coward | about 2 years ago | (#41415585)

For those who want to simply read books, the Kindle is phenomenal and serves its purpose. Now only if they'd stop charging you outrageous prices for e-books to maintain a status-quo of profits for the middle-men.

Re:Kindle is great for reading books (0)

Anonymous Coward | about 2 years ago | (#41416115)

Amazon doesn't have a choice in most cases. Apple made a deal with the major publishers to fix the prices on e-books when iPad was launched and it got forced on everyone.

Re:Kindle is great for reading books (0)

Anonymous Coward | about 2 years ago | (#41418587)

wow, you couldn't be more wrong, but nice iHate.

assholes do something nobody gives a crap (-1)

Anonymous Coward | about 2 years ago | (#41415597)

wallmart the worst company in american history does something (nobody gives a crap about the assholes called wallmart)

So they closed ONE Path (1)

rsmith84 (2540216) | about 2 years ago | (#41415669)

But seem to have failed to realize that you don't need a Kindle to download the Kindle app to any Android or iDevice and connect with your Amazon.com account. Hell, I have the Kindle App on my Motorola Droid phone and get my books for it on there without shelling out the higher $$ for the physical Kindle device. Since Walmart and Target also sell Android tablets and smartphones I guess it won't be long before they stop that too?

Re:So they closed ONE Path (1)

Cinder6 (894572) | about 2 years ago | (#41415759)

That's like saying they shouldn't sell computers because you can shop online with them. Android/Apple phones and tablets can also access the Walmart app and visit walmart.com. So can Kindle tablets, by the way. The difference is that the Kindle devices are much more proactive about you trying to buy from someone that isn't Walmart.

With that said, I'm sure there's another (possibly bigger) reason for the decision. Retail stores have to maximize earnings per square foot. The Kindle either didn't sell well enough in Walmart stores, or the margins on the sales were too low (or some combination of the two). That makes sense to me--someone who wants to buy an Amazon tablet likely already shops at Amazon, and will just buy it directly from the amazon.com website.

Re:So they closed ONE Path (0)

Anonymous Coward | about 2 years ago | (#41415873)

Yeah - they probably had a lot of stationary inventory. People would possibly try it out but then decide to purchase later and just pull the trigger online

Re:So they closed ONE Path (1)

farble1670 (803356) | about 2 years ago | (#41416829)

studies showed that people would come into retail stores and play with the kindle, then return home and buy it online. now that's wasted retail space.

Re:So they closed ONE Path (1)

Cinder6 (894572) | about 2 years ago | (#41418485)

That sounds strange at first glance. I'm guessing the reason is taxes. I wonder if that metric would change at all, now that Amazon is collecting tax in more states. I know that Amazon has lost some of its edge for me in California, especially if the items are the same price in-store and online.

Re:So they closed ONE Path (1)

contrapunctus (907549) | about 2 years ago | (#41421517)

I bought a kindle fire (original) at a physical store solely because online reviews said that amazon associates your kindle to your account before shipping it to you. so if it got stolen in the mail or by the door (because of the stupid kindle sticker on the box), the thieves can buy crap on you amazon account.

I regret buying it though, since the kindle app on an ipad is more user friendly (for example, it takes fewer steps to change brightness within the kindle app on the ipad than on the kindle fire).

Re:So they closed ONE Path (1)

drinkypoo (153816) | about 2 years ago | (#41417109)

It's a combination of things. One, if you get a Kindle you are led to Amazon. Two, they already sell other e-Book readers, so someone coming in to make an e-Reader impulse buy has other options and won't necessarily leave with a device that encourages users to bypass Wal-Mart. Three, as siblings state, people would not only buy it from Amazon, but they would go look at it at Wal-Mart first and then not buy it. And I don't know about you, but as I have standards I can go look for ten things Wal-Mart ought to have and indeed does have and yet not buy any of them because they are all shit.

Who's affected? (2, Insightful)

camperdave (969942) | about 2 years ago | (#41415691)

Who would even buy a Kindle from WalMart or Target in the first place? That's a purchase for an electronic appliance store like a Future shop or perhaps one of the many bookstores that carry them. Walmart is for your cheap, disposable type items like beach towels, laundry baskets, desk organizers, flashlight batteries and the like; things that you don't care where you got them because you're going to replace them when they break.

Re:Who's affected? (2)

platypussrex (594064) | about 2 years ago | (#41415727)

things that you don't care where you got them because you're going to replace them when they break.

Sounds like a Kindle to me ;-)

Re:Who's affected? (4, Insightful)

tlhIngan (30335) | about 2 years ago | (#41415877)

Who would even buy a Kindle from WalMart or Target in the first place?

People who shop at Target and Walmart? People who broke theirs and need a replacement immediately? People who wants theirs immediately? (It's the same price, after all)

Thing is, there are a LARGE number of people who don't shop online. They'll purchase stuff from curated stores (Amazon, Apple, etc), but they won't go open a browser and type www.amazon.com, click through and check out. They will however find a book, see "buy it", tap it and boom, book is on their device.

Thing is, a lot of other countries don't often have strong online shopping cultures (mostly due to lack of a decent Amazon, and competitors that charge shipping and taxes), so being able to buy it in a retail store for the same price is often quite appealing.

Re:Who's affected? (1)

sootman (158191) | about 2 years ago | (#41420531)

>> Who would even buy a Kindle from WalMart or Target in the first place?

> People who shop at Target and Walmart? People who broke theirs and
> need a replacement immediately? People who wants theirs immediately?
> (It's the same price, after all)

People who hate the thought of having to deal with shipping something back to a retailer if there's a problem? (Me.) People who bought it on sale? ($79 and got a $30 gift card -- also me.) People who save 5% by using their Target card? Etc etc etc.

Re:Who's affected? (1)

datavirtue (1104259) | about 2 years ago | (#41420973)

All of these reasons defy logic, but I can see your reasoning. Just as much trouble to take it back to the store, Amazon is a much better experience. Don't know what you're saying about the gift card. I can save more than 5% at Amazon--include gas and my time and there is no comparison.

Re:Who's affected? (1)

confusedwiseman (917951) | about 2 years ago | (#41415929)

I bought one from Target when I accidentally broke mine the day before a flight. Next day shipping would have been too slow, and I wanted it to entertain me on the fight. Granted, I could have had amazon ship it to my hotel, and I would have been fine, but for the same price, I wanted it immediately.

Re:Who's affected? (1)

denvergeek (1184943) | about 2 years ago | (#41416005)

I bought one in a Target for the instant gratification, and I was about to leave on a trip.

Re:Who's affected? (1)

geekoid (135745) | about 2 years ago | (#41416109)

People going to Target or Wal-Mart? I know, crazy huh.

Lets see:
People back to school shopping, people buying clothes, people buying groceries, people looking at things there going to buy online.

Re:Who's affected? (2)

bobstreo (1320787) | about 2 years ago | (#41416161)

Because I want it now, not in some random number of days, with it stuffed under a rug on my porch.

Sometimes I'm more willing to pay a bit more for immediacy.

Re:Who's affected? (1)

farble1670 (803356) | about 2 years ago | (#41416871)

Sometimes I'm more willing to pay a bit more for immediacy.

ever heard of 2-day or next day shipping?

that might be more than a "bit", but you also have to factor in your time driving, gas, waiting for some clerk to find the key to open the locked cabinet where they keep them, standing in line to check out, and so on.

Re:Who's affected? (1)

datavirtue (1104259) | about 2 years ago | (#41421019)

Yes, Amazon is extremely efficient. Walking into a store is a crap-shoot that usually results in horrible customer service, wasted time, and a negation of other random benefits. The world is moving very fast, wasting an hour fucking around in Wal-Mart is not a smart economic decision--unless your time is only worth $9 a hour. I still have to shop for groceries--this takes enough time as it is. In an hour I can become acquainted with a new technology or gain more insight into my industry.

Re:Who's affected? (1)

datavirtue (1104259) | about 2 years ago | (#41420987)

These channels are diverging. People need things immediately, but in the future the price for this convenience is going to increase by several factors.

(1) play with demo model before buying (1)

peter303 (12292) | about 2 years ago | (#41416205)

In rural areas Walmart is all there is. (2) Spur of moment last minute gift. Amazon ships fast, but not that fast.

Re:(1) play with demo model before buying (2)

kiriath (2670145) | about 2 years ago | (#41416267)

Amazon ships really fast... take this for example [youtube.com]

Re:(1) play with demo model before buying (1)

datavirtue (1104259) | about 2 years ago | (#41421033)

Edge case. Sounds like the argument of an OCD pedant.

Re:Who's affected? (2)

SeaFox (739806) | about 2 years ago | (#41416513)

Who would even buy a Kindle from WalMart or Target in the first place? That's a purchase for an electronic appliance store like a Future shop or perhaps one of the many bookstores that carry them.

Why would you want to buy one from FutureShop or a bookstore? It's not like the quality of the device is different if you get it from Target or from Fry's. A Kindle is a Kindle. The sales staff at all the retailers will be equally clueless, and as a geek you don't care about that anyway because you already know more about the product than they do. You're not there to shop and decide. You're there to buy.

The only difference is the price and return/exchange policy. Wal-Mart being Wal-Mart, the price will be lower there. You can return/exchange an item at any other Wal-Mart with your receipt, and there are a lot more Wal-Marts than FutureShops.

So yeah, who would even buy a Kindle from WalMart or Target in the first place?

Re:Who's affected? (0)

Anonymous Coward | about 2 years ago | (#41416949)

He's delusionaly still living in the world where average people go to stores specifically focused on the type of item they want, and make informed decisions about what they buy; not the real world where average people just buy everything at Walmart and buy whatever has the prettiest display even if they didn't want it before coming in.

Re:Who's affected? (1)

farble1670 (803356) | about 2 years ago | (#41416843)

did you know that you get the same kindle regardless of where you buy it? people are going to purchase where it's most convenient. stores like target and walmart have much higher traffic and than some specialized gadget store.

Re:Who's affected? (1)

Oliver Wendell Jones (158103) | about 2 years ago | (#41416897)

Those of us who live in small towns in the Midwest where Walmart K-mart or Target are your only real options for modern day electronics, unless you feel up to a 75 minute drive to a "big city" that has an electronic appliance store. If I'm going to waste that much gas and time, I'll just have it shipped Next Day Air - or go to Wal-Mart and get it right now.

Re:Who's affected? (0)

Anonymous Coward | about 2 years ago | (#41416905)

People that happen to see it while shopping for other things. People that want to try it out without buying one and returning it to Amazon if they don't like it.

By the way, Walmart and Target have become the pretty much everything stores, since Walmart has put most other stores out of business. There are no longer any bookstores around me (though that one is largely due to Amazon) and the only electronic appliance store left (Best Buy) has become little more than a cellphone store. There's a large amount of people that will see a Kindle while grocery shopping at Walmart and consider getting it. This hurts Amazon more than it hurts consumers, but it's not going to make a noticeable dent in them.

Re:Who's affected? (3, Interesting)

drinkypoo (153816) | about 2 years ago | (#41417055)

Who would even buy a Kindle from WalMart or Target in the first place? That's a purchase for an electronic appliance store like a Future shop or perhaps one of the many bookstores that carry them. Walmart is for your cheap, disposable type items

You got this totally ass-backwards. Walmart is well-represented everywhere and has a generous return policy. Further, if you're a California resident you have additional rights, and many of us are (take a quick look at population distribution...) so there are many reasons to buy something in a store as opposed to ordering it. The same logic applies to buying from Costco. I could possibly have got an LCD TV cheaper elsewhere even with shipping, but they gave a 2 year warranty where the same model (with a different model number, but the same damn thing) at other places had only 1 year. AND, often if you bring something in to costco even after the warranty period they'll replace it just to keep you happy.

No, online is the place to buy cheap, disposable items, because you can always order up another one. Wal-mart is for buying things you think you might want to take back to the store.

Re:Who's affected? (1)

datavirtue (1104259) | about 2 years ago | (#41421071)

AND, often if you bring something in to costco even after the warranty period they'll replace it just to keep you happy.

The essence of retail service. This used to be the norm.

Re:Who's affected? (0)

Anonymous Coward | about 2 years ago | (#41421223)

Actually: Walmart has really poor return policies.
30 days to return.
IF accepted for return, you get a Walmart gift card, not cash or back on your card.
OTOH, Future Shop that you mentioned ( Part of Best Buy, BTW) gives cash refunds.

Best returns are at Costco.

Re:Who's affected? (0)

Anonymous Coward | about 2 years ago | (#41417975)

I did. Initially Walmart offered a 17$ 3 year product replacement on the Kindle Fire. A comparable plan on Amazon costs around 70$.

Re:Who's affected? (1)

citizenr (871508) | about 2 years ago | (#41418229)

Who would even buy a Kindle from WalMart ?

they would : http://www.peopleofwalmart.com/ [peopleofwalmart.com]

They still sell iPads? (2)

Cutting_Crew (708624) | about 2 years ago | (#41415707)

"Wal-Mart continues to sell iPads, Barnes & Noble Inc's Nook, Google Inc's Nexus 7, Samsung's Galaxy Tab and other tablets and eReaders"

So people cant use iPads to go shop at like say "amazon.com"(wow who would have thought?) and other websites to find the best deal on ebooks to everything else under the sun?

Of course this only makes sense if you take the "amazon is our competitor" line.

Re:They still sell iPads? (1)

frosty_tsm (933163) | about 2 years ago | (#41415797)

"Wal-Mart continues to sell iPads, Barnes & Noble Inc's Nook, Google Inc's Nexus 7, Samsung's Galaxy Tab and other tablets and eReaders" So people cant use iPads to go shop at like say "amazon.com"(wow who would have thought?) and other websites to find the best deal on ebooks to everything else under the sun? Of course this only makes sense if you take the "amazon is our competitor" line.

Kindles were specifically designed and priced to streamline the user into purchasing products (eBooks) from Amazon. iPads and the like might have their tie-in to iTunes but it's not as cannibalistic.

Re:They still sell iPads? (1)

Cutting_Crew (708624) | about 2 years ago | (#41415939)

but people that want to buy ebooks from Amazon will buy from amazon. making it easier with a kindle doesn't mean people won't buy eBooks because it takes actually going to amazon.com and buying the book.

Re:They still sell iPads? (1)

NatasRevol (731260) | about 2 years ago | (#41415821)

Or if you take the "Amazon was encouraging people to get physical prices in stores, and get a 15% discount online" as competition.

How about a taste? (1)

mingot (665080) | about 2 years ago | (#41415769)

Amazon should give the retailer who sold the kindle a little taste on each purchase that is made on the device.

Amazon is the biggest 'illusionist' around! (0)

Anonymous Coward | about 2 years ago | (#41415771)

They keep spending, just to keep the revenue going up; to hide the fact that there is little in terms of profitability.
Investors are like the bone in front of the dog, only diff is the dog might get the bone some day.

The music for Amazon stops when revenue growth y2y goes below 20%. AWS is not a viable business, and they won't
be able to compete with the likes of Google/Apple in the digital space.

Re:Amazon is the biggest 'illusionist' around! (-1)

Anonymous Coward | about 2 years ago | (#41416525)

+5 informative. Their profit margin is 0.7%. For comparison, Wal*Mart has a profit margin of 3.5%.

I wouldn't trust any of their numbers. Hell, they don't give numbers. How many kindles have they sold? They won't say.

I'm sure some retard will come along and tell us that 0.7% of $LARGENUMBER is still a lot of money. Which is true but my checking account has a higher interest rate than that. Which is to say that, economically speaking, they are not profitable since you can get a better return on investment anywhere else.

Re:Amazon is the biggest 'illusionist' around! (3, Insightful)

Anonymous Coward | about 2 years ago | (#41416567)

you confuse revenue with investment, and still have the nerve to call others retards?

PC's and lappy too? (1)

Eyezen (548114) | about 2 years ago | (#41415791)

Cause the last time I checked I can use those to get to amazon.com just as well.

Huh? (1)

azav (469988) | about 2 years ago | (#41415813)

What does Wal-Mart have to do with Target?

Re:Huh? (1)

Anonymous Coward | about 2 years ago | (#41416663)

What does Wal-Mart have to do with Target?

They were were selling Kindles and being used by Amazon as a showroom. Now they stopped selling kindles...

More to the story... (0)

Anonymous Coward | about 2 years ago | (#41415823)

Sounds like there is some back room pissing contest or something going on - it's not like any of the products amazon sells via the Kindle really compete with Wal-Mart (movies and music do but they aren't stopping sales of other media consumption devices so that argument is a straw man)

I don't see the problem here... (1)

JustAnotherIdiot (1980292) | about 2 years ago | (#41415845)

since Amazon and Walmart are major competitors

Uh...Walmart/Target don't make tablets to my knowledge, why not make sell (and thus make money off of) a product of a competitor in a totally different field?

Look closer... (0)

Anonymous Coward | about 2 years ago | (#41415863)

If I buy a Kindle at Walmart or Target, and I start using the Kindle to purchase books/movies/etc from Amazon, guess what I'm not buying from Walmart or Target?

Re:I don't see the problem here... (0)

Anonymous Coward | about 2 years ago | (#41416999)

If you buy a kindle you're likely to start frequenting amazon.com, which sells many physical products. It is not the Kindle that is in competition with Walmart/Target but those other products.

Re:I don't see the problem here... (1)

Cutting_Crew (708624) | about 2 years ago | (#41417589)

my point exactly. so people that buy a kindle wasn;t going to shop at walmart/target anyway. might as well sell the kindles and hope they pick up a pack of batteries, some bread and milk while they are in the store. but thats just my logic. ??

Re:I don't see the problem here... (1)

zippthorne (748122) | about 2 years ago | (#41418159)

But that's the problem. People who buy a kindle only buy it once (or once every so often when a better one comes out or they break it). But if they're using it to read books, they're buying books much more frequently. And as long as they're logged in to amazon, why not order a pack of batteries, some dry goods, (and I think amazon actually does sell milk and bread, come to think of it.)

Amazon is preparing to crush Wal-Mart (4, Interesting)

Animats (122034) | about 2 years ago | (#41415891)

Amazon is taking over more and more of retail. They've already taken over books and DVDs. They took over and re-started Webvan. [webvan.com] They're building local distribution centers for same day delivery. They bought Kiva Robotics so those warehouses won't need many people.

The glory years of store-based retail are over. No new enclosed mall has been built in the US in a decade. Most retail areas have vacant stores that will never be used again. In a few years, retail will consist of recreational shopping and convenience stores. Everything else will be on line.

Then all we have to worry about is downtime. Read E. M. Forster's "The Machine Stops".

Re:Amazon is preparing to crush Wal-Mart (1)

Cutting_Crew (708624) | about 2 years ago | (#41415983)

not that i don't believe you but can i get a link to the "no new enclosed mall has been built in a decade" bit? I am putting together a blog that talks about "the takeover of machines". ty

Re:Amazon is preparing to crush Wal-Mart (2, Informative)

rgbrenner (317308) | about 2 years ago | (#41417337)

he can't give you a link.. because it's not true. here's an article from 2009 that says a mall opened in 2006, and another was scheduled to open later that year (2009)
http://theweek.com/article/index/94691/the-vanishing-shopping-mall [theweek.com]

Re:Amazon is preparing to crush Wal-Mart (1)

Animats (122034) | about 2 years ago | (#41418619)

Yes, one new mall opened in 2006. That's it since then. The huge Xanadu mall in New Jersey that was supposed to open in 2009 didn't open. Two bankruptcies and a roof collapse later, opening is now scheduled for 2014. [wikipedia.org] Maybe.

Re:Amazon is preparing to crush Wal-Mart (0)

Anonymous Coward | about 2 years ago | (#41419577)

There would have been more if not for the commercial real estate bubble popping alongside that of housing.

Re:Amazon is preparing to crush Wal-Mart (0)

Anonymous Coward | about 2 years ago | (#41421507)

There would have been more if not for the commercial real estate bubble popping alongside that of housing.

Sorry, but in that alternate future the the food court hot dog plague arises and wipes out 15% of humanity. Society collapses as the population shies away from all processed meats.

Re:Amazon is preparing to crush Wal-Mart (1)

damnbunni (1215350) | about 2 years ago | (#41416213)

I went and took a look. This reincarnated Webvan is pretty sad. Most items I looked for are marked 'out of stock' and while they list some perishable items, they don't appear to have ANY of them stocked.

Most of the products can probably be found direct on amazon.com instead.

Maybe.. not yet (4, Interesting)

rgbrenner (317308) | about 2 years ago | (#41416647)

Revenue:
Walmart: 460b
Target: 71b
Amazon: 54b

http://www.wikinvest.com/stock/Wal-Mart_(WMT)/Data/Revenue [wikinvest.com]
http://www.wikinvest.com/stock/Target_(TGT)/Data/Revenue [wikinvest.com]
http://www.wikinvest.com/stock/Amazon.com_(AMZN)/Data/Revenue [wikinvest.com]

Net profit:
Walmart: 16.4b
Target: 2.9b
Amazon: 0.38b

http://www.wikinvest.com/stock/Wal-Mart_(WMT)/Data/Net_Income/2012 [wikinvest.com]
http://www.wikinvest.com/stock/Target_(TGT)/Data/Net_Income [wikinvest.com]
http://www.wikinvest.com/stock/Amazon.com_(AMZN)/Data/Net_Income [wikinvest.com]

So Walmart is 10x larger by revenue.. and 43x more profitable.
Target is 1.5x larger by revenue.. and 7x more profitable.

Amazon has a long way to go.

Re:Maybe.. not yet (1)

hawguy (1600213) | about 2 years ago | (#41416727)

So Walmart is 10x larger by revenue.. and 43x more profitable.
Target is 1.5x larger by revenue.. and 7x more profitable.

Amazon has a long way to go.

While true, Amazon got a late start - the company didn't get off the ground until 1994, and didn't even have its first profitable quarter until 2001 when it had $1B in revenue -- Walmart hit $1B in revenue back in 1980.

Re:Maybe.. not yet (3, Informative)

rgbrenner (317308) | about 2 years ago | (#41417071)

Amazon has about the same revenue as Best Buy (50b).. but BBY made 1.28b in net profits.

Even when comparing Amazon to retail companies of similar size.. it doesn't perform well.

Let me rephrase.. even when comparing Amazon to failing retails giants.. Amazon does not perform well.

Lowe's.. 50b.. 1.8b net profits
Staples.. 25b.. 0.88b net profits

Did you know foot locker makes 278m on 5.6b in revenue.... 2/3rd the profits on 1/10th the revenue compared to amazon.

Point is... there's no indication that amazon will destroy B&M retail. So far they have not been able to show the profit margin or even just net profit that traditional retailers have been able to.

Re:Maybe.. not yet (0)

Anonymous Coward | about 2 years ago | (#41421257)

You should check your sources.
Best Buy is collapsing!

http://online.wsj.com/article/SB10000872396390444443504577602982855824216.html

http://www.forbes.com/sites/steveschaefer/2012/08/21/best-buy-profit-plunges-retailer-suspends-guidance-and-share-buybacks/

In Q1 it lost 2B and the CEO resigned.

Re:Maybe.. not yet (1)

Idou (572394) | about 2 years ago | (#41421393)

  • Perhaps Amazon is not so profitable because it is a technology firm and is expected to invest in future innovations rather than save profits for large dividends to investors (compare dividend yields).
  • Perhaps investors understand that Amazon is in the process of taking over the industry and are willing to weather lower profits now to see significant gains in value later (compare P/E ratios).
  • Perhaps brick-and-mortar stores have higher barriers to market so they can charge more monopoly rents than online retailers.

There are many reasons some companies are currently profitable, none of those reasons necessarily mean the company will be profitable in the future, especially when face with disruptive technological trends.

Re:Maybe.. not yet (1)

datavirtue (1104259) | about 2 years ago | (#41421919)

Amazon has been using all extra cash for investment. So, yes, profits are low. It is a vigorous, growing company unlike the others you cite. The retailers are making profits now and paying down equity. You can't do that and prepare for the future at the same time. The world is changing at a blurring rate of speed, and that fact escapes those who are rich. They want things to stay the same, not going to happen. Amazon is spending crazy cash to build distribution centers close to your home so you can order at 10pm and have stuff on your doorstep before you get home. Online retailers already accomplish this without these aggregated logistics facilities. Wal-Mart is standing still compared to Amazon. It is going to be fun watching them skate where the puck has been. Target executives took a sneering attitude towards Amazon because their customers were using them as a showroom for a lot of products sold on Amazon. Their answer was to put up barriers for customers. The truth is, Target and Walmart would have to spend all of their cash (profit) to begin competing with Amazon in the long run. That would upset the status-quo and make for a lot of unsettling infighting and work--so instead, management opts for the path of least resistance because they are already rich. Bezos is rich, but he is on a personal mission--get out of the way.

Re:Maybe.. not yet (1)

rgbrenner (317308) | about 2 years ago | (#41422787)

It is a vigorous, growing company unlike the others you cite.

Amazon is growing at 20% a year. On 50b in revenue, that's about +10b/year.. very impressive.

Walmart is growing at 6% a year. On 450b in revenue, that's about +27b/year. Double the growth of Amazon

http://money.cnn.com/magazines/fortune/fortune500/2012/snapshots/2255.html [cnn.com]

Re:Maybe.. not yet (1)

datavirtue (1104259) | about 2 years ago | (#41421957)

You don't have to destroy B&M, you only have to squeeze profits enough to make it unattractive to investors. The major B&Ms will be at each other's throats, one will die (Target), the other will live on profitably in a Microsoft kind of way.

Re:Maybe.. not yet (1)

datavirtue (1104259) | about 2 years ago | (#41421783)

Because raw numbers lined up always tell the whole story.

Re:Amazon is preparing to crush Wal-Mart (1)

future assassin (639396) | about 2 years ago | (#41417097)

The glory years of store-based retail are over. No new enclosed mall has been built in the US in a decade. Most retail areas have vacant stores that will never be used again.
  In a few years, retail will consist of recreational shopping and convenience stores.

That's why US retailers are coming to Canada.

Re:Amazon is preparing to crush Wal-Mart (1)

Anonymous Coward | about 2 years ago | (#41417485)

Re:Amazon is preparing to crush Wal-Mart (0)

Anonymous Coward | about 2 years ago | (#41417949)

It is called progress. At least the way I look at it. Now I can order from Amazon for a better price, with a wider selection.

I worked at Walmart for 3 years. They are behind on the times and doing a poor job to stay in the game. Look at their website compared to Amazon or Newegg. Walmart for most people around here has mainly become a grocery story.

My family's last 3 cell phone upgrades were done either on Amazon or Newegg (check their prices, much better than normal stores). Last time I went to buy blank DVDs I checked Walmart.. Their site didn't even tell how many was in a pack on some of them, it was in the comments by users along with comments on how terrible their site was. Those comments are still there today. They have had years and years to get their site reasonable.. They have a long ways to go.

What about iPads? (0)

Anonymous Coward | about 2 years ago | (#41416051)

iTunes sells music and movies, Walmart sells music and movies.

Re:What about iPads? (1)

hawguy (1600213) | about 2 years ago | (#41416773)

iTunes sells music and movies, Walmart sells music and movies.

It's likely that Apple shares more of the revenue from a $499 iPad than Amazon does on a $199 Kindle.

Plus, while Apple and Walmart both sell music and movies, Amazon and Walmart both sell music, movies, books, TV's, toaster ovens, mouthwash, pet supplies, etc -- there's *much* more overlap, and Amazon continues to expand its presence with their warehouse build out.

Short sighted (1)

geekoid (135745) | about 2 years ago | (#41416089)

They should have used their influence to work out a good online books store, and paired it with sales. Make money from value add.

Free eBook copy with every book purchase. Maybe a kiosk. People who go to wal-mart do so regulae, have a eBook of the week deal.

Re:Short sighted (2)

hawguy (1600213) | about 2 years ago | (#41416787)

They should have used their influence to work out a good online books store, and paired it with sales. Make money from value add.

Free eBook copy with every book purchase. Maybe a kiosk. People who go to wal-mart do so regulae, have a eBook of the week deal.

Which one is short-sighted? Amazon and Walmart are increasingly becoming competitors, Walmart probably saw little upside in helping their competitor sell products.

Re:Short sighted (0)

Anonymous Coward | about 2 years ago | (#41416977)

Walmart already tried doing an mp3 service, and that didn't work out... I think an ebook service from them would fail similarly.

brick and mortar (3, Interesting)

Cobble (1116971) | about 2 years ago | (#41416095)

Amazon should just buy the ailing Best Buy franchise and then they have instant brick and mortar storefronts all across America. Apparently, many people already go to Best Buy to touch the merchandise before they go online to buy it at Amazon anyway ;)

I don't get it (1)

future assassin (639396) | about 2 years ago | (#41417125)

I own a retail store and one of my competitors has a wholesale/manufacturing business. We both hate each other as I use to work for them BUT I still sell their products as "I" make money off them.

With sales tax in CA, I expect shipping next (2)

BlueCoder (223005) | about 2 years ago | (#41418517)

(I absolutely hate the short title requirements)

I expect that now that Amazon is charging sales tax in California for them to start stocking massive warehouses just outside major cites and to start running their own fleet of delivery trucks.

They could have showrooms throughout the cities and less than 24 hour delivery service. Want to try a product? Then just arrange for it to be shipped to a nearby showroom. Free returns anyone? What about a try before you buy Netflix type product a week? Try a new laptop every week.

Kindles are still in Staples stores (0)

Anonymous Coward | about 2 years ago | (#41421673)

Kindles can still be seen, handled , and tried in Staples stores...

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