Is Amazon the new Walmart?

[11thHour]

He said that Amazon is setting the wholesale rate, similar to what Walmart does. There is no evidence of that. If there was, earnings, or lack of, would certainly not be such an issue (Amazon reported less than expected EPS last quarter). As someone else said above, their earnings do not support the share price.

I would also add that, unlike Walmart, there are thousands of sellers using Amazon's portal/website. For almost every item, there are alternative sellers you can choose from. Amazon doesn't force you to purchase from them.

You're not familiar with selling on Amazon. I can't say for all accounts, as there are different levels and different associated features (such as richer product display abilities with higher end accounts etc), but they take x% off your retail price, that is what they pay, non-negotiable period. The x% varies by product category.

 

[CPA]

You're not familiar with selling on Amazon. I can't say for all accounts, as there are different levels and different associated features (such as richer product display abilities with higher end accounts etc), but they take x% off your retail price, that is what they pay, non-negotiable period. The x% varies by product category.

I know there are, but that doesn't invalidate the point that you are free to choose another retailer on the Amazon site to make sure purchase. Those retailers still make a profit, even with their fee to Amazon.

 

[11thHour]

I know there are, but that doesn't invalidate the point that you are free to choose another retailer on the Amazon site to make sure purchase. Those retailers still make a profit, even with their fee to Amazon.

You're talking about the end-user, I'm talking about the manufacturer and it's business. Can a manufacturer sell on Amazon without selling to Amazon? Sure. Will it affect the manu. adversely? Sure. Less exposure in the search results, less capability in the product pages, such as rich formatting, video, flash, access, etc. Not showing up in the 'customers who purchase this also purchased [your product]'. Not showing up as a ''recommended', not showing up in marketing emails with 'suggestions' etc.

A 3rd party seller can also have a much better price, and Amazon will still show up as the primary seller on a product page, simply under the guise that it shows 'prime' eligible products first. This is another method to get sellers to use amazon's fulfilment as well, which amazon of course sets the rate. Amazon does quite a bit in the background that users don't see to exert and leverage it's influence. Maybe 'the next walmart' isn't as appropriate a suggestion as 'the next microsoft' because microsoft has really been more of a posterchild for gaining incredible influence, then tailoring a business plan around exploiting it. Anyways, amazon has been an excellent company for customers to this point and I'm a loving amazon customer. It remains to be seen where they take their growing influence, and what that means to the customer as it continues to have a major and expanding effect on amazon's competitors (and with amazon's proclamation they want to sell "everything", all retailers become their competitors.)

 

[13Gigatons]

I hate Amazon.
I hate the layout.
I hate that they use warehouse slavery to profit.
I hate that they sell things from OTHER stores.

They stole something good and perverted it, like every GREEDY corporation.

PS: If we had a real government still they would break up monopolies. Last time that happened was AT&T I believe.

Sigh....

 

[SP33Demon]

Amazon charges sales tax in my state now, so might as well buy it at Wal-Mart (or some other local store if Wal-Mart doesn't have it).

That shouldn't matter. Amazon gets around the tax issue with small business sellers who have the same product (click other options/sellers). Usually there is another seller for the same exact price without tax, but it may not be eligible for prime (no bid deal for me) 2 day (but still usually free). If you need it right away, then you will probably have to pay the tax but Amazon has sneakily circumvented the sales tax issue if you don't need the item right away.

 

[SparkyJJO]

I hate Amazon.
I hate the layout.
I hate that they use warehouse slavery to profit.
I hate that they sell things from OTHER stores.

They stole something good and perverted it, like every GREEDY corporation.

PS: If we had a real government still they would break up monopolies. Last time that happened was AT&T I believe.

Sigh....

Amazon is not a monopoly, so that has no bearing on anything here.

Also, I assume you buy only local stuff from small places right? Given how you rant against these "evil corporations."

 

[Kaido]

Amazon is the new Newegg.

+1

 

[13Gigatons]

Amazon is not a monopoly, so that has no bearing on anything here.

Also, I assume you buy only local stuff from small places right? Given how you rant against these "evil corporations."

I try to buy American made products from small local stores.

It's getting really hard too do that now though.

 

[JM Aggie08]

I have no real use for Walmart. Taget + HEB -> Everything I need.

 

[nickbits]

They stole something good and perverted it, like every GREEDY corporation.

Stole what from who?

 

[Sonikku]

I saw what must have been a 13 year old girl with a big pregnant belly the last time I was at walmart. The people you see there...

 

[desura]

Well,

Walmart used to be kind of impressive. Amazon *is* impressive.

Last time I went to Walmart I cringed. It's just a mess, understaffed, junk in the aisles, and most importantly...the prices suck. No genuine deals to be found.

 

[Blackjack200]

In fact, it's well known that Amazon's growth right now is not earnings related but future potential.

Just for the hell of it I checked out their P/E.

It's six.

Hundred. Yeah. Six hundred. For comparison, the Russell 2000 value index is eight. Just eight, no hundred.

So for Amazon to provide the return that the Russell 2000 returns, it will need to earn 75 times what it earns now, or more than double it's earnings SIX times.

Holy friggen hell, who owns this stock?

 

[Imp]

Amazon will rule the world... Didn't you know?

I love Amazon, but everyone's getting in on the action now. Both Wal-Mart and Best Buy now sell practically anything and everything online -- and this is in Canada where options are usually limited and we're years behind the US of A.

 

[jpiniero]

Not entirely. Amazon still really isn't in the grocery business.

Holy friggen hell, who owns this stock?

There's a reason why Congress won't legalize gambling - Wall Street doesn't want the competition.

 

[Cheesemoo]

speaking of Wal-Mart and american made etc. what do yall think about Walmarts new push?

http://www.walmart.com/cp/1104053?po...8+1139.4564-L0

 

[SparkyJJO]

I have no real use for Walmart. Taget + HEB -> Everything I need.

I hope you don't use your credit card at Target

 

[Wyndru]

Amazon is the new Newegg.

:hmm: Newegg came online about 6 years after Amazon did. Newegg has been emulating Amazon for a long time now. IIRC Newegg shortly followed Amazon with the marketplace model, where you can buy items from other merchants.