It is becoming more clear just how Amazon is viewed by retail competitors such as Walmart and Target. Today, for example, Walmart sent out an email explaining how they will no longer carry Kindle Fire and Kindle e-reader devices. This is a pretty big deal actually, and Walmart isn’t the first major retailer to take these steps. Back in May, Target gave all Kindle Fire and Kindle e-reader devices the boot as well.
So what’s the cause behind Walmart and other big box retailers putting a stop to selling the Kindle Fire? It’s because the Kindle Fire, and now the Kindle Fire HD line of tablets, are becoming so widespread. And with the growing user base, more people have access to products that are a lot cheaper on Amazon.com than in Walmart Stores – which is to say that Amazon is now viewed as a direct competitor.
It’s also the whole reason behind Amazon selling the Kindle Fire HD, and their line of Kindle e-reader devices, at a loss in most cases. Amazon is willing to take a loss on the physical hardware because they know they’ll make a whole lot more money from people buying items and downloading content.
All of which is reaching a point where Walmart, Target, and other big box brands are starting to take steps to try to squelch Amazon’s momentum.
The big question is whether or not this strategy will work against Amazon. My guess is that it won’t because the people who buy things – both physical and digital items – from Amazon are buying them directly on Amazon.com. So the big box retailers aren’t impacting that buying process whatsoever.
What we are likely to see in the very near future are Amazon retail stores. So one day – probably sooner rather than later – you may be able to drive down to your local Amazon store to do your Christmas shopping.