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Problem for Bezos: Mall Becoming Cheaper Than Amazon
http://blogs.wsj.com/corporate-intelligence/2013/08/19/a-problem-for-jeff-bezos-the-mall-is-becoming-cheaper-than-amazon/?mod=WSJ_hppMIDDLENexttoWhatsNewsSecond ^ | 8/20/2013

Posted on 08/20/2013 12:55:21 PM PDT by redgolum

You might think the biggest challenge for Amazon founder Jeff Bezos is figuring out how to make money running a print newspaper, but here is a risk hitting much closer to home: Brick-and-mortar retail stores are becoming cheaper than Amazon

(Excerpt) Read more at blogs.wsj.com ...


TOPICS: Business/Economy
KEYWORDS: amazon; amazonprices
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1 posted on 08/20/2013 12:55:21 PM PDT by redgolum
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To: redgolum

Good, I hate Amazon.


2 posted on 08/20/2013 12:56:49 PM PDT by Pietro
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To: redgolum

Rather pay the difference and stay with Amazon.


3 posted on 08/20/2013 12:56:54 PM PDT by VanDeKoik
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To: redgolum

Amazon is hindered by the fact that they have to pay to ship individual items, but stores only have to pay for the shipping of multiple items once.


4 posted on 08/20/2013 12:57:11 PM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults)
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To: redgolum

The instant gratification of brick and mortar stores vs internet wins out over the “I bought this on the internet.” ........


5 posted on 08/20/2013 12:57:22 PM PDT by Red Badger (Want to be surprised? Google your own name......Want to have fun? Google your friend's names........)
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To: redgolum

I don’t have to burn $4 a gallon gas to get to my Ipad.


6 posted on 08/20/2013 12:58:55 PM PDT by Argus
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To: redgolum
So? That's what open market competition is all about.
If government had started regulating online sales both Amazon and *-mart would more expensive.

7 posted on 08/20/2013 1:01:56 PM PDT by BitWielder1 (Corporate Profits are better than Government Waste)
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To: Jonty30

Amazon Prime truly pays for itself quick, especially the student discount. 2 day for free on all orders for a year is crazy.


8 posted on 08/20/2013 1:02:56 PM PDT by Monty22002
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FReepathon
Day 51.

Please donate today.

9 posted on 08/20/2013 1:03:03 PM PDT by RedMDer (http://www.dontfundobamacare.com/)
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To: redgolum

I like paying a premium to NOT drive and not go in a mall with a bunch of people that look like a casting call for the Jerry Springer show. I hate having to talk to idiot/lazy/uninterested/gum-smacking/phone texting tattooed employees that can’t answer any questions about the products or merchandise.

In fact I’m betting that the business model for Amazon is to not be cheaper but to be more convenient and see how much they can charge before they lose enough business that it affects the bottom line. That’s what I would do. Once you add on gas and time to a product, then you get the true price.


10 posted on 08/20/2013 1:03:37 PM PDT by Dick Vomer (democrats are like flies, whatever they don't eat they sh#t on.)
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To: redgolum

Amazon stopped fighting internet sales tax and eventually became rather supportive (now collecting it for Texas and California I believe) becuase they figured the tax will cripple small competitors. Now that I have to pay shipping and tax on everything I get from Amazon, the price difference is often not enough to prevent me from buying at a store.


11 posted on 08/20/2013 1:04:52 PM PDT by RightOnTheBorder
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To: redgolum
There are pluses and minuses to both.

I buy staples at the big box stores. But I'm not going to burn gas to find a specialty item. Who has the time?

12 posted on 08/20/2013 1:04:54 PM PDT by St_Thomas_Aquinas (Isaiah 22:22, Matthew 16:19, Revelation 3:7)
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To: Monty22002

Amazon Prime truly pays for itself quick, especially the student discount. 2 day for free on all orders for a year is crazy.


Not to mention all the free TV episodes and movies you get with Prime. Joined before Christmas last year and Prime paid for itself in the orders I got free 2 day shipping on in a matter of days.


13 posted on 08/20/2013 1:05:42 PM PDT by MWestMom (Psalms 109:8)
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To: MWestMom

I don’t use instant watch that much, since I had Netflix and they typically have a bit better selection. But that is a nice bonus as well.

For me the 2 day free shipping is just outstanding. I get sales tax added, but it’s still cheaper usually to order most things on there.


14 posted on 08/20/2013 1:08:41 PM PDT by Monty22002
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To: Red Badger
The instant gratification of brick and mortar stores vs internet wins out over the “I bought this on the internet.”

Yep, On the other hand, clicking on "One-click Purchase" and watching the file finish downloading to my Kindle is even instanter gratification. "Instanter". Perhaps my next purchase should be a dictionary.

15 posted on 08/20/2013 1:08:47 PM PDT by Billthedrill
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To: Red Badger

Instant Gratification? Thy name is KINDLE!
Amazon for me.


16 posted on 08/20/2013 1:09:17 PM PDT by Little Ray (How did I end up in this hand-basket, and why is it getting so hot?)
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To: Billthedrill; Little Ray

But then you have to wait for it to arrive like a kid waiting for Santa Claus..............


17 posted on 08/20/2013 1:11:00 PM PDT by Red Badger (Want to be surprised? Google your own name......Want to have fun? Google your friend's names........)
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To: Red Badger

OK, yes, I will admit that was me checking my porch every 20 minutes with a new pair of binox inbound...


18 posted on 08/20/2013 1:12:47 PM PDT by Billthedrill
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To: VanDeKoik

Me too...I stick with Amazon because when you weigh time to go to a brick and mortar, gas to get you there, etc. the lack of frustration by ordering on Amazon is worth a little extra money. Customer service on returns is astounding.

I’ve taken to buying more and more things online, not just at Amazon. I use Walmarts free ship for an order over $45 to reduce our trips to Walmart.

If time is money, or it costs a little more to eliminate stress and hassle of going to a store, I’ll stay with online shopping.

One other thing that’s left out of this story, go to the mall and you’re more likely to impulse shop With online shopping, I don’t browse, I know what I want, and go in and buy it, so online I don’t buy that extra something that I probably don’t really need.


19 posted on 08/20/2013 1:13:37 PM PDT by memyselfandi59
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To: redgolum

For me Amazon Prime is the winner. I only order what I need and with the ‘Prime’ the shipping is nil. When I go to Wal-Mart I still find myself picking up ‘stuff’ I hadn’t specifically gone there to buy. And yes I do make a shopping list throughout the two week period between trips.


20 posted on 08/20/2013 1:14:42 PM PDT by The Working Man
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To: redgolum

But the mall is still the mall, with all that noise and teenagers and everything else that makes the mall suck. And of course there’s availability, and all your stuff is never in the same store. I don’t shop at Amazon for the price, if I’m willing to put effort in I can usually beat their price, I shop there for the convenience, one stop shopping don’t even have to be decent.


21 posted on 08/20/2013 1:16:01 PM PDT by discostu (Go do the voodoo that you do so well.)
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To: redgolum

Great! Glad to read that local stores have once again become competitive. When retailers compete, consumers win!

I will happily use all shopping options to my advantage.


22 posted on 08/20/2013 1:22:28 PM PDT by DakotaGator (Weep for the lost Republic! And keep your powder dry!!)
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To: redgolum

it just depends. sometimes it’s better in stores, sometimes not. sales, specials, either place may be better. but store sales taxes sometimes negate a better dal, sometimes shipping may negate a better deal.


23 posted on 08/20/2013 1:22:41 PM PDT by Secret Agent Man (Gone Galt; Not averse to Going Bronson.)
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To: redgolum
Amazon sucks.

I sell stuff on-line....Have for years.

Amazon is the most difficult place for me to sell anything.....

I quit selling there. Their format is cumbersome...confusing...And they hold my money too long.

24 posted on 08/20/2013 1:24:46 PM PDT by Osage Orange (Light travels faster than sound. This is why some people appear bright until you hear them speak.)
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To: memyselfandi59

When Walmart goes “Peapod” I’m in...........


25 posted on 08/20/2013 1:26:06 PM PDT by Osage Orange (Light travels faster than sound. This is why some people appear bright until you hear them speak.)
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To: redgolum
Let me know when the mall delivers it to my house. Besides I never encounter screaming children, rude clerks and surly teenagers on Amazon. Don't have to look for a parking space and don't have to drag my items through the store without a cart.

I love on-line shopping, whether it's Amazon or some other place.

26 posted on 08/20/2013 1:27:17 PM PDT by beandog (All Aboard the Choo Choo Train to Crazy Town)
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To: Jonty30

You got that exactly right. On an item under $100 weighing over 2 lbs, individual item shipping gets expensive.

For example I sold several used golf clubs of mine on eBay, for between $20 and $100, and the shipping runs $10-20 depending on weight.


27 posted on 08/20/2013 1:30:27 PM PDT by entropy12 (With no fear of re-election, Obama is becoming more radical left..thanks a lot all you who abstained)
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To: Argus

Exactly. The time and effort involved in buying something at a brick and mortar store is prohibitive


28 posted on 08/20/2013 1:32:28 PM PDT by rbg81
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To: redgolum

We’re over 150 miles from malls and big stores. We got the Amazon Prime this year and it has been a blessing. My wife is a baker and looking down her list of orders it is apparent how much we saved instead of driving. Yeast, vanilla, spices, all the small stuff she orders with Prime. We make the journey to town every month or two for the heavy flour and sugar and stuff.


29 posted on 08/20/2013 1:34:32 PM PDT by eartrumpet
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To: RightOnTheBorder

Either remove the sales tax everywhere, or apply it equally everywhere. Otherwise, you’re just subsidizing on-line retailers at the expense of local merchants. Neither should be subsidized, and neither should be targeted for taxes the other does not pay.


30 posted on 08/20/2013 1:39:45 PM PDT by USFRIENDINVICTORIA
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To: redgolum

75% of my shopping cart on Amazon always comes back as “we can’t mail to you” since I am in the Alaska bush.

They used to send everything here.

I use them less and less.


31 posted on 08/20/2013 1:44:21 PM PDT by hattend (Firearms and ammunition...the only growing industries under the Obama regime.)
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To: St_Thomas_Aquinas

I can find anything on amazon. But I really like the reviews, no tax and that I can shop for best price. Amazon has so many advantages for me in country.


32 posted on 08/20/2013 1:45:39 PM PDT by ncpatriot
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To: redgolum

Mrs. R2 bought a new printer last month. She was at Best Buy. What she wanted was $199.00.

I was at work but Amazon’d’ the same printer. $149.00.

So she told the salesguy no, her husband was gonna get it on Amazon.

They price matched it.

They verified it was the same model # and they gave it to her for the same price it was listed for on Amazon.

Way cool.

No paying for shipping and she had it home and on line the same day.


33 posted on 08/20/2013 1:49:42 PM PDT by Responsibility2nd (NO LIBS. This Means Liberals and (L)libertarians! Same Thing. NO LIBS!!)
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To: redgolum

First of all, I don’t believe that any thing at any mall is cheaper. Second, I’ve become a recent Amazon convert because I can get things there that I can’t get anywhere else and the guarantee is 100%.


34 posted on 08/20/2013 1:53:53 PM PDT by Tula Git (There IS a coup in America and it's on track and almost complete.)
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To: redgolum

If you go to the mall, you will not find the German reissue on 180-gram vinyl of an obscure 1970 psyche record issued in an edition of 500 about 3 years ago.

Amazon: copies offered by Amazon itself, and 3 different sellers.


35 posted on 08/20/2013 1:55:02 PM PDT by proxy_user
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To: Dick Vomer

I agree that the local mall is full of losers and I avoid it.

But Amazon loses me to the free-standing big box stores most of the time, like Kohls, Best Buy, Costco, Lowes.

Our family returns 1/3 of the clothes and shoes we order online due to poor fit. Books are usually ok online, but shopping in an actual bookstore is fun, not work. Other items I really need to look over before I buy. And returning stuff by mail is a hassle.

The Internet is absolute gold, though, for making reservations for events and planning trips. There is no brick and mortar place that can equal it.


36 posted on 08/20/2013 1:58:04 PM PDT by married21
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To: Tula Git

we are remodeling our kitchen with new cabinets and appliances. my contractor told me to order my appliances from Amazon if they were cheaper. The refrigerator i wanted was cheaper on Amazon and it’s being delivered today. free delivery. No free haul away as Home Depot offers, but we are keeping the old fridge as a second one, out in the garage.


37 posted on 08/20/2013 1:59:04 PM PDT by xsmommy
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To: USFRIENDINVICTORIA
Either remove the sales tax everywhere, or apply it equally everywhere.

So the stores are going to start checking the id of their buyers, charging and remitting sales tax to their customers home state/county/city?

Let me know when that happens.

But that is what they are demanding on-line stores do.

38 posted on 08/20/2013 1:59:37 PM PDT by Harmless Teddy Bear (Revenge is a dish best served with pinto beans and muffins)
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To: redgolum

I hate Amazon haters.


39 posted on 08/20/2013 2:02:48 PM PDT by Revolting cat! (Bad things are wrong! Ice cream is delicious!)
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To: hattend
...since I am in the Alaska bush.

Most of us had always referenced that by saying you were "off the deep end..." < /grinning, running >

40 posted on 08/20/2013 2:03:37 PM PDT by KC Burke (Officially since Memorial Day they are the Gimmie-crat Party.)
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To: redgolum

One of the things I like about Amazon is that you get user reviews which are useful in making buying decisions. You dont get that inside a Walmart. Sure you can read the reviews first then buy it at a big box IF they have it and the price is significantly better. Easier to just order it from Amazon if you dont need it instantly.


41 posted on 08/20/2013 2:04:04 PM PDT by Brooklyn Attitude (Obama being re-elected is the political equivalent of OJ being found not guilty.)
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To: USFRIENDINVICTORIA

Equalize the sales tax my A$$. I live in NH. We do not have a sales tax. If your state spends too much money and raises your sales tax, that is not my problem.

Sorry to be rude FRiend.

FYI, I love Amazon. They have revolutionized the way the world buys products. Along with Amazon, I have purchased a Grohe faucet from faucets.com and Hunter ceiling fans from lighting.com. just recently. I have also purchased furniture, lawn mower parts, chainsaw parts, woodworking tools, sporting goods, clothes, computers, cameras, books, cds, digital music, lights, tvs, carpets, sandpaper, garage door openers ALL OVER THE INTERNET.

I also can see the day when we will purchase groceries, with the exception of some perishables, over the internet delivered to our homes. There are many things, like paper towels, TP, laundry detergent, that I would buy in bulk if it was less expensive. Many of us do not live close enough to a Cosco, BJ’s or Sam’s Club to make it worthwhile to join and drive there.


42 posted on 08/20/2013 2:08:26 PM PDT by woodbutcher1963
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To: redgolum

Not a problem foe me. I’m overseas and sometimes on trips home mail items to my FPO - motorcycle helmet, golf club etc . It is not unusual for these items to take six weeks to get here and I’m not at an FOB in Afghanistan. However, when I order from Amazon, it’s here in ten business days tops.


43 posted on 08/20/2013 2:35:26 PM PDT by Rummyfan (Iraq: it's not about Iraq anymore, it's about the USA!)
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To: woodbutcher1963

Whoa, hold up there pardner. I didn’t say: “equalize the sales tax ...” I said: “apply it equally everywhere”. Perhaps I wasn’t clear: I meant if B&M retailers have to collect sales tax; then so should on-line retailers. Otherwise, the tax system is penalizing B&M retailers, and subsidizing on-line retailers. That’s not how a tax system is supposed to work.

The on-line retailer knows where you live (how else do you expect to get the merchandise?), you would be charged the rate that applies in your home state. If there’s no sales tax where you live, you would pay no sales tax for on-line purchases. Using about ten microseconds of computer time, the on-line retailer would calculate the total taxes collected by state, and remit those amounts to the respective states.

BTW, I also mentioned the alternative of removing all sales taxes.


44 posted on 08/20/2013 2:44:37 PM PDT by USFRIENDINVICTORIA
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To: Monty22002

Agreed it sorta “pays” for itself, but it is not free. You have paid for the “Prime” and Amazon includes some or all of the cost of shipping in the price you pay. Believe me.


45 posted on 08/20/2013 2:45:17 PM PDT by BatGuano (You don't think I'd go into combat with loose change in my pocket, do ya?)
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To: Monty22002

You do save by not burning gas. Just inconveniencing some electrons.


46 posted on 08/20/2013 2:47:28 PM PDT by BatGuano (You don't think I'd go into combat with loose change in my pocket, do ya?)
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To: Tula Git

[I can get things that I can’t get anywhere else...]

Indeed! And the reviews are worth their weight in gold!

http://www.amazon.com/Hutzler-571-Banana-Slicer/dp/B0047E0EII/ref=sr_1_1?ie=UTF8&qid=1376937194&sr=8-1&keywords=hutzler+571+banana+slicer


47 posted on 08/20/2013 2:56:53 PM PDT by glock rocks (No comment.)
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To: redgolum

I’ve saved TONS of money buying on Amazon!

I compare, so I’m not guessing.

$450 on a lawn tractor.
$50 on a chain saw.

Not to mention being able to find things that are perpetually out of stock locally.


48 posted on 08/20/2013 3:17:34 PM PDT by G Larry (Let his days be few; and let another take his office. Psalms 109:8)
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To: USFRIENDINVICTORIA

It’s already applied equally. Online retailers do not collect taxes in States where they have no physical presence. To do otherwise would make them tax collectors for the over 10,000 cities, counties, and States, along with having the burden of keeping tabs on all legislation regarding changing rates and tax impositions. This compliance nightmare would make them subject to audits from up to 46 states.


49 posted on 08/20/2013 3:19:58 PM PDT by Kaosinla (The More the Plans Fail. The More the Planners Plan.)
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To: RightOnTheBorder

Yep, Amazon made a massive strategic error there. Commercial space prices are falling and retailers are modifying their sales tactics. The market is reacting, sadly RE is crippled by massive government involvement and people cry about the government takeover of health care.

Our economy wouldn’t be in the tank now, but for government’s conspiracy to help home owners.


50 posted on 08/20/2013 3:50:28 PM PDT by 1010RD (First, Do No Harm)
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