Slashdot Mirror
Wal-Mart, Amazon Battle For Online Retail's Future
Hugh Pickens writes "The NY Times reports that Amazon and Wal-Mart are waging a price war for the future of online retailing that is spreading through product areas like books, movies, toys, and electronics. The tussle began last month over which company had the lowest prices on the most anticipated new books and DVDs this fall, but has now spread to select video game consoles, mobile phones, even to the humble Easy-Bake Oven. 'It's not about the prices of books and movies anymore. There is a bigger battle being fought,' said Fiona Dias, executive vice president at GSI Commerce, which manages the Web sites of large retailers. 'The price-sniping by Wal-Mart is part of a greater strategic plan. They are just not going to cede their business to Amazon.' Wal-Mart, with $405 billion in sales last year, dominates by offering affordable prices to Middle America in its 4,000 stores, while Amazon, with $20 billion in sales, caters mostly to affluent urbanites who would rather not push around a cart. But Amazon is expanding its slice of the retail pie at an alarming rate — its sales shot up 28 percent in the third quarter of this year; and sales in Amazon's electronics and general merchandise business are up 44 percent. 'We have to put our foot down and refuse to let them grow more powerful,' says Dias. 'I applaud Wal-Mart. It's about time multichannel retailers stood up and refused to let their business go away.'"
I like when things arrive damaged. I can complain to Amazon and they'll usually give it to me free. Good luck getting anything free from Walmart, who will usually give you a store credit (gift card) instead even when you deserve a refund
"I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
Why should Amazon's owner, a citizen of California, be subject to a Massachusetts government ~2500 miles away? That's akin to saying somebody in Portugal citizen-seller should have to pay tax to the Lithuania government. It makes no sense to allow governments to extend their laws beyond their own borders.
Especially when the Californians/Portuguese citizens have no voice in the Massachusetts/Lithuanian Legislatures. That's taxation without representation.
"I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
Neither the U.S. Constitution nor the EU Lisbon Treaty allows Massachusetts (Lithuania) to bar Californian (Portuguese) sellers to sell their goods into their respective territories. These were the terms of the Confederation these states agreed to.
And as for the tax, only the central government can tax across state lines. Citizens of one member states are not subject to the sales laws of the other state. Each state's laws end at the border.
Being a Virginian I don't recognize New York's authority to subject me to their laws.
"I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall