Walmart vs. Amazon, it's war!
Filed under: Shopping, Technology
Walmart fired a deafening shot at Amazon.com Thursday, announcing plans to sell 10 hot new books for just $10 at its Web site, Walmart.com. Yep, that's right, hardcover books from bestselling authors like Dean Koontz and James Patterson for just $10. And here's the fun part: When Amazon said it was matching those prices, Walmart dropped its prices again, to $9 per book. It's a price war on the tallest order. (You can already preorder books).
"If there is going to be a 'Wal-Mart of the Web', it is going to be Walmart.com," said Walmart.com CEO Raul Vazquez in an interview with the Wall Street Journal (subscription required). "Our goal is to be the biggest and most visited retail Web site."
I'm convinced a lot more of us will be shopping online this holiday season, and saving money is only one reason why. More and more, we turn to the internet to research products, read reviews and compare prices. Driving traffic to Walmart.com with some eye-popping deals will logically lead to higher click through rates. Meaning, customers will buy the book and then some.
Convenience and low prices online, that's been one of Amazon's strengths since its inception. Competing more directly with Walmart on this was only a matter of time. Shortly after the book announcement, Amazon unveiled plans to offer same day delivery in seven cities including New York, Seattle and Las Vegas.
Walmart doesn't always win these battles. In 2003 it launched a DVD rental service to counter Netflix but shut it down less than two years later, directing subscribers to the very company it hoped to beat: Netflix. It also backed off selling movie downloads after less than a year of trying.
Walmart does a lot of things well, but not all. Trying to capture market share from a competitor is good business and par for the course. But usually that happens when a competitor is weak or a product category is undergoing some change.
Consolidated sales were up 14% for Amazon's last quarter ended in June, although I think there's some seismic activity going on in the category. Electronic readers are starting to move beyond novelties and become a genuinely viable business. Downloadable versions of books, both new releases and the classics, are causing publishing companies to rethink business models and digital rights are now an issue among authors.
It's a lot like the advent of digital music files.
Amazon has an early start in this. Its Kindle is the leading reader, and while it's an amazing device, it hasn't had much competition. That's about to change. Sony has a new Reader, Google is getting in the game and Barnes & Noble has one on deck for the holidays.
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Reader Comments (Page 1 of 2)
10-16-2009 @ 10:00PM
Eric said...
The advantage that Wal-Mart has is that you can return to a brick and mortar and not get hit with shipping charges. Amazon is great if you know exactly what you want and are lucky enough to have no problems with it. Anything bigger than a DVD, I stick with Wal-Mart.
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10-17-2009 @ 11:35PM
Justin said...
I would rather pay double to anyone to avoid doing business with wal-mart. Wal-mart has cost tens of thousands of U.S. jobs in it's bullying of companies forcing them to move to China. Wal-mart declaring war on all of it's competition will ultimately result in costing consumers more. Once the competition is eliminated, wal-mart can charge whatever they like, and believe me they will. These are ruthless, bottomfeeders as far as I'm concerned and will NOT receive one cent from me. This is not the company that Sam Walton started and I will happily patronize their competition. Thankfully the movement to boycott wal-mart is gaining momentum.
10-18-2009 @ 8:47AM
Kyle said...
I heard the same thing 20 years ago that consumers would pay in the end about wal-mart! LOL....Well here we are...I am better off with Wal-mart...period
Wal-mart is a business. Businesses compete amongst one another. It has always been that way. Comsumers WIN in the end due to lower pricing, better service etc.
Wal-mart does'nt get in bed with the other retailers and jack prices up with "price fixing". They Bring customers to them with beating competetors prices. That is what business is about, offering services and pricing to gain market share of consumers.
I don't think it wise to pay "Double" to anyone rather than shop at wal-mart unless you are filthy rich, of course. You are paying a business "Double" to rip you off???? And not buying from the business that was charging you a lower price.
And no, wal-mart is not the only retail that bought goods over seas...lol...we as a people are so naive.
10-17-2009 @ 8:27PM
nofel said...
when will people realize that the stores like walmart are only hurting our economy we are paying for the insurance through government plans while the owners are making money .shop union stores for the america and all you entertainers that are in the union respect the union and only release movies and dvds throught the union stores you are in a union too
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10-17-2009 @ 8:58PM
rick said...
when will people wake up about walmart and quit giving them so much money
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10-17-2009 @ 9:17PM
Bob said...
Go to wal-mart and buy only things made in the USA.
10-18-2009 @ 6:26AM
kyleclay said...
When wal-mart raises their prices and gets in bed with other retailers and begin "Price Fixing".
10-17-2009 @ 9:13PM
Jeff McCaffrey said...
Perhaps with the money Wal-mart makes from taking business away from Amazon they can pad there executives salaries one last time and then take down the walls to labor organizing for the UFCW. That would allow this gigantic corporation to finally be a part of the solution to America's middle class woes by helping to drive the American Dream.
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10-17-2009 @ 9:09PM
Tommy said...
This is for Eric; The disadvantage of CHINAMARTS is that if you want an item made it China that won't last any length of time. CHINAMARTS is great for this. Anything with any longevity at all I stick with the other retailers.
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10-17-2009 @ 9:08PM
Tommy said...
Rick, you hit the nail right on the head!
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10-17-2009 @ 9:39PM
Gary-BG said...
Another trick they employ is price changes I worked for a major Grocery Store at one time as a stock person. They had us do price changes on Wednesday and Thursdays knowing that most people shop Fridays being payday of course.The trick is this being a big chain they would raise the price on about 200 items then lower the prices on 200 more. Raising the price on say spaghetti sauce and lowering the price on noodles or vice versa. You can do the math for all the items you may purchase just the spaghetti one would include garlic bread , Parmesan cheese and some spices so you can see if you need to purchase things for a meal you may end up paying substantially more when all totaled even though you got certain items on sale.Then using placement they can make sure you get enough sale items in the right order to make you feel you've saved money when you've paid more.
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10-17-2009 @ 10:12PM
Chris said...
rick said...
when will people wake up about walmart and quit giving them so much money
Answer: When there are American made products sold that do not bankrupt the average consumer.
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10-17-2009 @ 11:35PM
jeo said...
Not gonna happen.The advantage third worl countries have over the U.S. is such that we as a nation will never compete.18 work days,2$ an hour,no pollution standards to speak of.I bought a sony walkman at Wal Rot when i was a kid,It was made in Japan.I still have it today,still works.On the other hand I have 5 junk Mp3 players of different brands bought at walmart that do not work.50$ walkman that lasted 20 years or 100$worth of defective mp3s that lasted about long enough for the warranty to run out.Do the math,Time to wake up.
10-17-2009 @ 11:02PM
Hippie said...
Wal-Mart is NEVER GOOD FOR ANYONE!!! Ya know why you get such good deals there? It's because Wal-Mart FALSLY ACCUSES there EMPLOYEES at random of all types of THEFT! They try to EXSTORT money out of there EMPLOYEES. So when you get that great deal at Wal-Mart, just know it's coming off the back of a Wal-Mart employee! I know, they did it to me!!! Amazingly, for all the evidence Wal-Mart CLAIMED they had against me-NO EVIDENCE EVER APPEARED, I was NEVER CHARGED! My experience was politically motivated because they were pissed off that I took a day off to buy a car when I found out my car was a loss and unsafe to drive. I don't know about every case but I know that in my case after working for them for 1 1/2 years with no past disipinary action against me-this was the THANK YOU I got from them!!!! In my case, Wal-Mart Corporation was nothing more then EXTORSIONISTS!!!!
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10-18-2009 @ 5:23AM
Dave said...
Or could it be that you were a bad employee and could not spell?
10-17-2009 @ 10:24PM
bob said...
i just hate walmart. they cliam they have low prices but i'm more into electronics like games and cds. i hate buying cds from walmart really cus they're edited. as for games there's gamestop andgamecrazy for that. malls and best buys for cds as well for games to. walmart is just like anyother store they say they have lower prices but they're same as anyother store. recently they've made walmart sell food products. its just another way to gain customers. movies i don't know any good dvd stores. walmart sucks. not as bad as kmart though. but still i hate walmart.
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10-17-2009 @ 11:38PM
joe said...
I hate wal-mart.They are the company largely responsible for flooding the market in the US with Cheap Chinese junk.Thier predatory approach to thier competitors is shamful.I believe in capitalism but to empower a communist nation responsible for million of deaths to its own people in the past decades to undercut its competitors is not what capitalism should be,Not to mention how many job this country has lost in its wake.
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10-17-2009 @ 11:31PM
mezl said...
this isn't really relevant to the article, but i find it annoying. the phrase "pre-order". you can NOT possibly, physically, even if you build a time-warp machine, "pre-order" any thing. how do you order some thing BEFORE you order it? "god", that annoys me!!!!!!!!!! you either ORDER some thing or you DON'T. you do NOT, CAN not, "pre-order", "pre-qualify", "pre-" NOTHING!!!! you either order or you don't, qualify or not. PERIOD.
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10-17-2009 @ 11:43PM
chris said...
The major problem is that there an international company so theye don,t comletely rely on the american consumer just like mcdonalds.
P.S. does anyone else notice the free item in the picture
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10-18-2009 @ 1:53AM
maeri554 said...
I have visions of one day going to Walmart and buying a car at a kiosk. Soon Walmart will take over everything and everybody.
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