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Amazon and Walmart Are In An All-Out Price War That Is Terrifying Big Brands (recode.net)
gollum123 quotes a report from Recode: Last month, Walmart gathered some of America's biggest household brands near its Arkansas headquarters for a tough talk. For years, Walmart had dominated the retail landscape on the back of its "Everyday Low Price" guarantee. Walmart wants to have the lowest price on 80 percent of its sales, according to a presentation the company made at the summit, which Recode reviewed. To accomplish that, the brands that sell their goods through Walmart would have to cut their wholesale prices or make other cost adjustments to shave at least 15 percent off. In some cases, vendors say they would lose money on each sale if they met Walmart's demands. Brands that agree to play ball with Walmart could expect better distribution and more strategic help from the giant retailer. And to those that didn't? Walmart said it would limit their distribution and create its own branded products to directly challenge its own suppliers. But this time around, Walmart's renewed focus on its "Everyday Low Price" promise coincides with Amazon's increased aggressiveness in its own pricing of the packaged goods that are found on supermarket shelves and are core to Walmart's success, industry executives and consultants say. The result in recent months has been a high-stakes race to the bottom between Walmart and Amazon that seems great for shoppers, but has consumer packaged goods brands feeling the pressure.
I used to be willing to shop at Walmart, but with their race to the bottom it's become an unbearable place to shop. Their rock-bottom pricing gospel has always attracted people who can't afford to pay anything more than that. Of course this includes many decent people of modest means and quite a few thoroughly unpleasant people. It used to work out well enough when the stores were reasonably staffed and they could keep things in check, but now it seems most of them are being run by a skeleton crew and the damages of the resulting circus are being considered just a cost of doing business. With Amazon, you never have to see these people and suffer the misery of queuing for 15 minutes just to check out. With Walmart, the experience is horrible. So if I'm looking to cheap-out on regular supplies, you can bet I'm going with Amazon. That's why I think they will win out in the end.
Odds are that a long time ago the friends you had were Walmart sales associates, and today your friends are Amazon techies. Just for fun compare the same kind of job levels and you'll be surprised how Walmart employees at the bottom of the pyramid have more opportunities than those at Amazon.
Almost all top managers at Walmart HQ started in Walmart stores. How many top managers at Amazon started in the fulfillment centers?
lucm, indeed.
Walmart 2-day shipping is a lie. There. That is the difference.
When you order from Amazon with a two-day delivery, you can reasonably expect Amazon will hit that goal, pretty much all the time. It's extremely dependable.
When you do an equivalent order from Walmart, well... they may not even ship it for two days, and it may ship ground from halfway across the country, and may show up for in-store pickup in five or seven days.
I ordered a TV with two-day delivery a couple summers ago, so not during Christmas or any rush period. Silly me, I assumed two-day meant two-day. In reality, they shipped it via Fedex Ground from over 1000 miles away, and it took five whole days, not two, and then I had to stand in line in the store for 45 minutes behind people doing returns and buying Western Union and money orders, just to claim my item, which they initially could not find. Mind you, it was a 40" TV so not small or anything. It turned out they had been using my TV box to prop open the door to the pick-up area.
More recently, I tried to order a smartphone for in-store pick-up. It was supposed to be at the store and I could just walk in and get it, but I did pick-up just to save time. Paid for it online before the store opened for the day and waited for the email to come pick it up. Never got the email. So I called them. And well, they never bothered to go fulfil the online orders that morning and the stock they had, including the one I had already paid for, got sold when the doors opened and regular customers came in. And now they were out of stock and sucks to be me. Nobody in the store gave a shit. Online is a whole other department and nobody in the store felt any responsibility to do anything for them. At best, they worried only about their own store stuff, not online orders, so nobody even cared that they had failed to secure an item that had been paid for. Oh well.
This happens so often, the online side instantly refunded the money the moment I asked. That's the only thing that actually happened as promised. Refunds.
tl;dr Walmart has grand goals to be like Amazon but they drop the ball in making it happen. Their ads promise what they can't deliver, so no, it's not equivalent
at all.
Sig for hire.
Granted, a portion of the blame here also resides with PayPal, but still extremely frustrating. I burned up almost all the minutes on my then pre-paid flip phone with Walmart and Paypal trying to resolve it.
Side note, it is hard as fuck. But even with a decade in prison, and a felony record, I now have a great job, a side business, bought a new car 2 years ago and now own a home. All in a bit over 5 years. It took a lot of luck, good friends, and a pile of hard work. So if you are unemplyed, have strikes against you etc, don't give up.
Silence is a state of mime.