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As a brick-and-mortar retailer, would you let Amazon handle your checkout system?
venturebeat.com ^ | 1/30/2014 | Barry Levine

Posted on 02/01/2014 2:51:31 PM PST by RoosterRedux

Having raised existential questions about why we need brick-and-mortar stores, Amazon is now looking to help out its physical competitors. The e-tailing giant is reportedly planning to offer its popular Kindle tablet as the centerpiece of a new checkout system.

On Thursday, the Wall Street Journal reported that the plan will provide credit card readers as well as Kindles. Citing “people briefed on the company’s plans,” the Journal noted that the rollout is not yet set in stone and could be “delayed, altered, or canceled.” On the other hand, it could be ready as soon as the summer.

In December, Amazon bought the technology and engineering team of the San Francisco-based startup GoPago, a mobile payments company that developed point-of-sale systems designed around smartphones and tablets. The GoPago system included an app, a tablet, a credit card reader, a locked cash box, a printer, and even insurance. The GoPago business and customer relationships were purchased separately by mobile payments service provider DoubleBeam.

Smaller retailers first

Given that the world’s largest virtual store has no significant brick-and-mortar retailing experience, Amazon would likely have to leverage its online presence with retailer coupons or discounts to compete with the likes of NCR, VeriFone Systems, Square, and others. Smaller retailers are expected to be the initial targets and, to entice the pitch, Amazon might also offer website development, data analysis, and other services.

(Excerpt) Read more at venturebeat.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS:

1 posted on 02/01/2014 2:51:31 PM PST by RoosterRedux
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To: RoosterRedux

Amazon plays a smart game.


2 posted on 02/01/2014 2:59:13 PM PST by The Duke ("Forgiveness is between them and God, it's my job to arrange the meeting.")
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To: The Duke
Bezos has his head on straight.

That said, I think the drone delivery thing was just for fun (though it may come about some day).

I am surprised that he hasn't sold physical franchises (locations) that can receive bulk shipments overnight and thereby offer free next day shipping to most cities and small towns. Shipping (cost and time) is the primary problem with buying on Amazon.

Otherwise, Amazon is the best. Great service, great array of products.

I own ETF's that own Amazon, but I don't own any shares directly.

3 posted on 02/01/2014 3:05:42 PM PST by RoosterRedux (The only true wisdom is in knowing you know nothing -- Socrates)
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To: RoosterRedux

I’ve been thinking about this inevitable outcome for years. We use a system of payments that others built on the cheap without needed security, and when it bites us in the axx we’re (consumers) are told to buy ID protection at $20/month. This is total BS. The retail sector and their bankers need to protect us on their dime, or we should never be suckered into using their system again.

The big box stores and internet retailers and credit card companies need to be held accountable for the loss of consumer identification data through their el cheapo security measures.

This policy of putting even a small burden on consumers because of poor security could be ended near term if only the CEOs of these companies were charged and held personally accountable. Their goal is to make us buy spontaneously thinking that their system poses no threat to us personally.

Wrong! Their system does pose a threat. The success of America depends upon confidence in our institutions and politicians. I have lost confidence in both. They are out for short term profits and $$$ while we all face the consequences.


4 posted on 02/01/2014 3:11:10 PM PST by apoliticalone
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To: The Duke

If you write an ebook and market it online with them they roughly take 2/3 and give you the remaining 1/3. Pretty greedy suckers if you ask me...


5 posted on 02/01/2014 3:12:39 PM PST by jsanders2001
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To: apoliticalone
The market will take care of this.

I am sure Target has lost tons of customers because of their information theft issues.

6 posted on 02/01/2014 3:14:25 PM PST by RoosterRedux (The only true wisdom is in knowing you know nothing -- Socrates)
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To: RoosterRedux

Absolutely not.


7 posted on 02/01/2014 3:15:57 PM PST by real saxophonist
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To: RoosterRedux
would you let Amazon handle your checkout system?

No, I'd much rather have the government run it. It will save me $2500 a year and it will be free. Also, it I like my business even though I didn't build it, I can keep it!

8 posted on 02/01/2014 3:36:44 PM PST by Right Wing Assault
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To: RoosterRedux

Bezos will mine your data to find out what your best sellers are and then compete with you and kick your ass to the curb.

Unless you manufacture what you sell, he will screw you over in six different positions.

He’s smart and slimy.


9 posted on 02/01/2014 3:37:32 PM PST by Valpal1 (If the police can t solve a problem with violence, they ll find a way to fix it with brute force)
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To: RoosterRedux

In answer to the title — Absolutely not!

My daughter got a refurbished computer from them. The mouse quite in two weeks and within a month the entire computer crashed. I had a blue screen — death screen that no one ever wants to see.

The only thing that worked was the monitor and it has marks on the screen.

I won’t order from them because they support Planned Parenthood.


10 posted on 02/01/2014 3:48:00 PM PST by Salvation ("With God all things are possible." Matthew 19:26)
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To: The Duke

When you think about it how do brick and mortar stores in business? Impulse purchases. I don’t like Best Buy, but when the wife is in Kohl’s I’ll wander over and “demo” items I might order later on Newegg, Amazon or Ebay.


11 posted on 02/01/2014 3:49:58 PM PST by miliantnutcase
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To: miliantnutcase

-— When you think about it how do brick and mortar stores in business? -—

Depends on what you’re buying. I was shoe-shopping online and couldn’t find find any good shoes marked down below retail. Then I went to DSW and found lots of great bargains. Plus I could try on the shoes, etc.


12 posted on 02/01/2014 3:57:13 PM PST by St_Thomas_Aquinas ( Isaiah 22:22, Matthew 16:19, Revelation 3:7)
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To: RoosterRedux

Amazon started collecting NC state tax as of Feb 1. Will cut into NC folk’s savings vs brick & mortar stores.


13 posted on 02/01/2014 4:02:13 PM PST by moovova
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To: RoosterRedux

Shipping is wonderful on Amazon if you have Prime. Not only do you get the movies and TV series to watch on the computer, you can borrow a Kindle book per month to read and most shipping is free for 2 day delivery. We have it and get every penny’s worth of our money. Of course, not everyone would, but it’s just my opinion on how great Prime is.


14 posted on 02/01/2014 4:05:10 PM PST by leapfrog0202 ("the American presidency is not supposed to be a journey of personal discovery" Sarah Palin)
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To: jsanders2001

Compared to what? Traditional book publishers aren’t exactly sharing the wealth with their authors either. I read that typically the author gets less than $1 per book.


15 posted on 02/01/2014 4:07:00 PM PST by leapfrog0202 ("the American presidency is not supposed to be a journey of personal discovery" Sarah Palin)
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To: leapfrog0202

Prime is excellent and more than pays for itself, especially at Christmas/holiday time. Fast, efficient, and easy returns. One point, though, we mostly use Amazon as the merchant.


16 posted on 02/01/2014 4:20:56 PM PST by madison10
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To: jsanders2001
If you write an ebook and market it online with them they roughly take 2/3 and give you the remaining 1/3. Pretty greedy suckers if you ask me...

Perhaps, but try marketing an e-book on your own. For the tiny to nonexistent investment an author has to make, it might be well worth it. It's really an amazing service.

17 posted on 02/01/2014 4:24:21 PM PST by BfloGuy ( Even the opponents of Socialism are dominated by socialist ideas.)
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To: apoliticalone

More and more I only use American Express card....because they are VIGILANT about stuff looking weird that is being charged to your account.


18 posted on 02/01/2014 4:25:03 PM PST by goodnesswins (R.I.P. Doherty, Smith, Stevens, Woods.)
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To: Right Wing Assault

If you like your checkout, you can keep your checkout.

All your checkouts are belong to us.


19 posted on 02/01/2014 4:39:30 PM PST by goodwithagun (My gun has killed fewer people than Ted Kennedy's car.)
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To: RoosterRedux

Bring the web to the brick/mortar stores. An economical COTS solution.

It might work. A concern such as Amazon could help the bookkeeping.

Stores in a chain where not all locations carry all products, or can run out, might benefit from a kiosk system within the store, if not also at the register. You would order whatever you wanted which wasn’t there on a shelf, and it would be at the store within a promised time frame. Walmart offers this as an online service, but some extra navigation within their main website is needed. The kiosk could better hold the shopper’s hand, so to speak. And often shopping in store will remind a shopper of something else desirable which, however, isn’t physically there. So why send him home to complete the order; let him complete it at a kiosk.


20 posted on 02/01/2014 4:46:52 PM PST by HiTech RedNeck (The Lion of Judah will roar for you if you give him a big hug and a cheer and mean it. See my page.)
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To: goodnesswins

It varies from bank to bank for other forms. I’ve had Wells Fargo notify me about things it thought was fishy going on with my debit card.


21 posted on 02/01/2014 4:48:12 PM PST by HiTech RedNeck (The Lion of Judah will roar for you if you give him a big hug and a cheer and mean it. See my page.)
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To: leapfrog0202

Got a trial of some sort for Prime several years ago, haven’t looked back.


22 posted on 02/01/2014 4:48:40 PM PST by matt04
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To: matt04

Prime may be great if you shop a lot of Amazon. I shop Amazon less often, my circumstances currently requiring frugality. Often the things I want are covered under a “buy $XX worth, get free shipping” plan which often, if not always, turns out the most overall economical method. And then although they said it was going to be a week, the items commonly show up in two or three days anyhow.


23 posted on 02/01/2014 4:53:18 PM PST by HiTech RedNeck (The Lion of Judah will roar for you if you give him a big hug and a cheer and mean it. See my page.)
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To: jsanders2001

If you write an ebook and market it online with them they roughly take 2/3 and give you the remaining 1/3. Pretty greedy suckers if you ask me...


You need to update your facts.

Yes, from .99 to 1.99, they pay a 35$ royalty.

But from $2.00 and up, they pay a 70% royalty.

Now try finding a traditional publisher that pays anywhere near either of those rates.

Amazon has probably made more writers millionaires than all the big publishers have combined.


24 posted on 02/01/2014 6:09:43 PM PST by chaosagent (Remember, no matter how you slice it, forbidden fruit still tastes the sweetest!)
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To: RoosterRedux

“The market will take care of this.

I am sure Target has lost tons of customers because of their information theft issues.”

I hope so. The problem is that the “market” becomes our personal 401K because of short term greed and incompetence of a few.

I’d much prefer to see those that harm society (regardless of their status or politics) charged and making sand out of boulders instead of just making 35mil this year instead of 50mil last year.


25 posted on 02/01/2014 6:24:25 PM PST by apoliticalone
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To: Salvation

I will never say to anyone, or state that their beliefs are wrong. I will ask them, if that kind of economic thinking is what Americans need to get the wrong stuff fixed?

One major problem is that the bigoted, racist, typically wealthy, over class that owns our politicians, the media, and Hollywood have been working overtime putting a bulls-eye on the majority who call themselves Christians, while promoting an agenda giving others a pass.


26 posted on 02/01/2014 6:38:12 PM PST by apoliticalone
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To: St_Thomas_Aquinas

Yeah, same here.


27 posted on 02/01/2014 7:54:02 PM PST by miliantnutcase
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To: chaosagent

You need to update your facts.

Yes, from .99 to 1.99, they pay a 35$ royalty.

But from $2.00 and up, they pay a 70% royalty.

Now try finding a traditional publisher that pays anywhere near either of those rates.

It’s not that simple...https://kdp.amazon.com/help?topicId=A29FL26OKE7R7B


28 posted on 02/01/2014 8:31:18 PM PST by jsanders2001
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To: jsanders2001; Travis McGee

How about we ask the opinion of a published author who uses Amazon? Any input, Matt?


29 posted on 02/01/2014 8:42:15 PM PST by Bob
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To: Bob

The ebooks are a real licrative deal for Amazon; you do all the work and submit the finished product; they make 2/3 the profit. There’s not the usual costs of publishing and promotion as with a standard book. That’s my chief complaint. Its money for almost nothing for them.


30 posted on 02/02/2014 3:50:18 AM PST by jsanders2001
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To: jsanders2001

How do you get your ebooks publicized and sold?


31 posted on 02/02/2014 6:00:37 AM PST by Bob
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To: Bob
Jeff Bezos might be an uber-lib, but he has been the greatest thing to ever happen to indy authors. I sell printed books, e-books and audio books via Amazon outlets.

I don't care an iota about brick and mortar book sales. They are all going the way of Borders. Their dinosaur business model is dragging itself along on momentum. I don't even care what's on the back cover of my printed books, they are not sold to shelf browsers. I care much more about how my covers appear as thumbnails, that is where the decision to buy is made, or at least the decision to click on a thumbnail and continue toward a purchase.


32 posted on 02/02/2014 6:56:13 AM PST by Travis McGee (www.EnemiesForeignAndDomestic.com)
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To: jsanders2001
"If you write an ebook and market it online with them they roughly take 2/3 and give you the remaining 1/3. Pretty greedy suckers if you ask me..."

NOT TRUE. Kindle books selling for $2.99 and above are eligible for 70% royalties. That means a $6.99 Kindle returns $5 to the author.

Show me a "real" (dinosaur) publisher in NY that pays 70% royalties to new, untested, unproven indy authors. More like 10% royalties, IF they get a contract.

Below $2.99, and if an author opts to sell his books on B&N Nook, the top Amazon e-book royalty drops to 30%, but that's still better than 10% from a "real" (snicker) publisher.

33 posted on 02/02/2014 7:01:12 AM PST by Travis McGee (www.EnemiesForeignAndDomestic.com)
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To: Valpal1
Bezos will mine your data to find out what your best sellers are and then compete with you and kick your ass to the curb. Unless you manufacture what you sell, he will screw you over in six different positions. He’s smart and slimy.

How does he do that with books?

34 posted on 02/02/2014 7:02:58 AM PST by Travis McGee (www.EnemiesForeignAndDomestic.com)
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To: leapfrog0202

See #33.


35 posted on 02/02/2014 7:04:04 AM PST by Travis McGee (www.EnemiesForeignAndDomestic.com)
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To: BfloGuy

It costs zero to upload a book to Kindle. Zip, nada. It might be trash or treasure, but the “gate” is wide open to indy authors. In fact, largely due to Bezos and Amazon, the “real” publishing world gatekeepers are no longer even relevant. Anybody can publish anything, for free.

Promotion and selling is still up to the author, but at least it’s an open and level playing field. No more years wasted playing “entice an agent” and groveling on your knees up and down 5th Avenue kissing the P.C. backsides of covens of liberal witch gatekeepers.


36 posted on 02/02/2014 7:07:53 AM PST by Travis McGee (www.EnemiesForeignAndDomestic.com)
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To: Travis McGee

How does that work when you have the days that you give them away? Does Amazon do it for free as a promotional item?


37 posted on 02/02/2014 7:25:28 AM PST by Lurkina.n.Learnin (This is not just stupid, we're talking Democrat stupid here.)
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To: Travis McGee

Not arguing with you on that. You have more experience than I on selling books. I guess ebooks are a whole different venue. Anyone can publish and an automated system is set through Amazon who get to profit if your book sells without lifting a finger through their automatec delivery system. I know there’s a few admins....okay what I’ m really saying is dang I wish I’d thought of it first...: )


38 posted on 02/02/2014 8:08:23 AM PST by jsanders2001
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To: jsanders2001

It’s not that simple...

https://kdp.amazon.com/help?topicId=A29FL26OKE7R7B


Yes, I know about that very confusing chart. Even the authors don’t understand it all.

It covers every country, every language, every promotion, delivery costs to other countries, etc.

But I two friends who are best-selling Kindle authors. They been in the top ten in their genre (Murder Mysteries and Science Fiction, respectively) and on the New York Times Best Seller List. As far as the murder mystery guy, Amazon even paid to have all five of his books converted to audio books.

They will both tell you that on their $2.99 books, Amazon pays them $2.09 per copy sold.

On their $3.99 books, they get $2.79 and on their $4.99 books, they get $3.49.

Here’s a quote from a website about authors and publishing.
*******

As of this writing, royalties for paperbacks can either be approximately 8 to 10 percent of the list price or 15 to 25 percent of the net sales amount (net sales is the list price minus the production costs, which tend to be $2-4 per paperback copy).

So, if a book is $18, an author using the royalty method can expect to receive between $1.44 or $1.80, while an author using the net sales method (if the production costs are $5.00, for example) can expect to receive between $1.95 or $3.25.

*****
Note the percentages paid and the royalty per copy from a traditional publisher. Also note that one of my friends makes more per copy on a $2.99 book than a ‘published’ author make on a $18 book. And they’ve both sold tens of thousands to hundreds of thousands of copies of multiple books

Now who would you want to ‘publish’ your book? HarperCollins or Amazon?


39 posted on 02/02/2014 8:40:16 AM PST by chaosagent (Remember, no matter how you slice it, forbidden fruit still tastes the sweetest!)
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To: Lurkina.n.Learnin

How does that work when you have the days that you give them away? Does Amazon do it for free as a promotional item?


Usually the author decides to do this for two reasons.

1. Get their name out there if they are a new author, or

2. Get readers hooked on the first book in their multiple book series.

And in most cases, the author takes the hook on this, but remember, it doesn’t usually cost them anything. Just loss of sales, but if you aren’t selling much, then ...

This is also why you see authors price the first book in their multiple book series at .99 and then the rest are $2.99 to $4.99. If the book catches their interest, then most readers will spring for .99.


40 posted on 02/02/2014 8:46:33 AM PST by chaosagent (Remember, no matter how you slice it, forbidden fruit still tastes the sweetest!)
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To: jsanders2001

The ebooks are a real licrative deal for Amazon; you do all the work and submit the finished product; they make 2/3 the profit. There’s not the usual costs of publishing and promotion as with a standard book. That’s my chief complaint. Its money for almost nothing for them.


Not always true.

Check out the complete rates in postings below.

Also, what about people who have sold 10’s of thousands of .99 books. 50,000 x .35 equals over $17,000. And yes, there are people doing this.


41 posted on 02/02/2014 8:50:14 AM PST by chaosagent (Remember, no matter how you slice it, forbidden fruit still tastes the sweetest!)
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To: goodnesswins

I use American Express for everything. I watch my account online and one click to dispute the charge and it is gone. They recently called hubby and said.....are you in London? He said no and they cancelled his card and overnighted him a new one.
They are very good for any kind of fraud.


42 posted on 02/02/2014 9:24:06 AM PST by sheana
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To: Travis McGee

I was speaking of non-book retail sales. This is what he does with affiliate sellers. They find and market products on AZ and AZ then starts selling it themselves and undercuts you both in price and s/h costs. They, of course, have huge advantages of scale that small retailers can never hope to match.

AZ essentially uses affiliates as product researchers and they pay AZ for the privilege.

This is great for consumers, but if you’re in business of retail sales, think very carefully about giving this 2 ton Gorilla access to your product and sales data.


43 posted on 02/02/2014 10:06:53 AM PST by Valpal1 (If the police can t solve a problem with violence, they ll find a way to fix it with brute force)
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To: Lurkina.n.Learnin

If an author puts a title into the Kindle Prime program, there are some new deals and situations that apply. One is that your title can be “borrowed” by readers in the Prime program for 2 weeks. In a sense that is giving them away, right? But when you have 0.01% market penetration and name recognition, the key is just to get folks to read your stuff. As one book pub guy told me, “You should drop them from airplanes.” I used to worry about being pirated if I went to e-books, now I don’t even care. The more readers, the better in the end.

Titles in Kindle Prime can also be marked as no cost for 5 days out of 90. How an author chooses to use the “free run” days—or not—varies widely. Again, it’s a case of introducing more readers to your “brand,” so in the end, you will also sell more books. I like to announce them ahead of time on places like Facebook or here so that a lot of readers who are in tight times can experience them now while they are relevant. In the end, many of them will buy a Kindle e-book, printed hard copy book, or audio book. So it’s all good. A rising tide etc.


44 posted on 02/02/2014 10:49:51 AM PST by Travis McGee (www.EnemiesForeignAndDomestic.com)
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To: apoliticalone
Your post #4 contains a MOUNTAIN of TRUTH.

This especially caught my attention as I have often thought, "WHY do people NOT question this?"

We use a system of payments that others built on the cheap without needed security, and when it bites us in the axx we’re (consumers) are told to buy ID protection at $20/month. This is total BS.

45 posted on 02/02/2014 10:58:07 AM PST by VideoDoctor
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