Posts Tagged 'Kindle'

More on Amazon’s foray into food

Reports about Amazon developing a private-label team as it expands its grocery business prompted the following comment from a recent RetailWire panel discussion:

Selling branded goods, not its own brands (with the exception of the Kindle) is central to the Amazon brand. (Not to mention great execution, competitive prices and broad assortments.) So I’m not certain that a deep dive into private brands is as critical to the success of Amazon’s grocery business as the competitive advantages it has already developed.

The most important step Amazon can take to have an impact in the shop-from-home (and home delivery) grocery business is to focus on logistics. While Amazon is busy building huge distribution centers around the country, it may also want to consider the wisdom of buying an existing food distribution company as a partner.

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After Apple: Will e-book prices fall again?

In a widely publicized case, Apple was ruled to have colluded with e-book publishers on retail prices. The question under discussion today at RetailWire: Will this cause a massive change in e-book pricing, for the benefit of the consumer? I don’t think so, at least not as long as Amazon drives the overall tone of the marketplace:

I don’t see a big change in e-book pricing resulting from this ruling. A recent news story documented the diminishing discounts being offered by Amazon, and anybody who buys books on their Kindles can attest to this. There may be more deep discounting of a handful of best-sellers, but overall Amazon continues to gain pricing power especially with B&N pulling back from the e-reader market.

Does Best Buy belong in the tablet business?

From RetailWire, where the discussion centers around private-brand tablets (like Dynex or Insignia) at Best Buy. I think there’s a place for this kind of merchandising, even in the increasingly crowded marketplace for tablets:

To some degree, tablets are displacing not only desktops and laptops but also TV’s. It’s not news that consumers watch movies on tablets, but consumption of TV series and other cable content is growing rapidly. So Best Buy needs to get into the game, just as they carry a credible assortment of private-brand TV’s under the Dynex and Insignia labels. I agree with the assessment that $199 (not $250) is the magic price point — otherwise, why not buy a Kindle Fire or other branded tablet?

Amazon: Friend or foe?

Here’s a recent comment from RetailWire about Walmart, and its decision to drop the Kindle family of products from its assortment. This says more about the perceived threat from Amazon than it does about carrying the right merchandise:

I have the same reaction as I did a few months ago when Target announced its move: This has everything to do with e-commerce competition from Amazon, and very little to do with carrying the right merchandise. There is no doubt that the Kindle family of readers and tablets is the share leader in the category, so it sends a mixed message for the two largest discounters to drop the product. It’s all about the big box stores feeling Amazon breathing down their necks.

Should Target drop the Kindle?

From a recent RetailWire discussion, about Target’s decision to drop the Amazon Kindle from its assortment. Most comments defended Target given the increasing competition from Amazon in many product categories. I take a different view, driven by what products belong in the assortment:

I’m a little baffled by this decision, especially given the long history between the two companies — most of all when Amazon was spearheading Target’s e-commerce effort. And if dropping the Kindle is a way to punish a competitor, what’s next? Dropping the iPhone because people are using it inside Target for “showrooming”? (OK, obviously not.) To say that this decision is in the best interest of Target’s “guests” is disingenuous, considering the Kindle is the best-selling family of e-readers on the market.

Who is in Amazon’s line of Fire?

Amazon made headlines this month when they introduced the Kindle Fire at $199. RetailWire panelists weighed in on whether Apple or another competitor was the real target here. My opinion:

I agree with the premise that Barnes & Noble is the biggest short-term target of the Kindle Fire. And keep in mind that Amazon also launched three other Kindle models, including a basic wifi-only model with an aggressive price of $79. It’s a powerful flanking strategy for the Kindle brand, and also allows Amazon to develop a more sophisticated tablet in the future that can compete more effectively against the iPad.

Amazon starts a brushfire

Plenty of comments at RetailWire (including mine, below) about Amazon’s introduction of the Kindle Fire tablet. I see it as part of a broader strategy, in which Barnes & Noble (not Apple) is the real target:

I agree with the premise that Barnes & Noble is the biggest short-term target of the Kindle Fire. And keep in mind that Amazon also launched three other Kindle models yesterday, including a basic wifi-only model with an aggressive price of $79. It’s a powerful flanking strategy for the Kindle brand, and also allows Amazon to develop a more sophisticated tablet in the future that can compete more effectively against the iPad.


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