Amazon is currently pushing its capability of shipping products to customers by building key storage facilities nationwide. By building these storage facilities, they should be able to send in almost anything to their customers in just 24 hours. Their ultimate goal is to offer wide variety of products to their customers with the promise of quick shipping. It’s a business idea that requires billions of dollars with the promise of becoming the retail giant online.
But the recent move of Amazon in the retail industry is receiving some serious backlash as this business plan is seen as a threat by other retail bigwigs.
One of the company’s that is seriously considering the competition posed by Amazon is Wal-Mart. The nationwide retail giant is known for offering practically everything to consumers including electronic gadgets including the Kindle e-book readers and Kindle Fire.
But the retail giant recently announced that they will no longer offer these products in any of their stores. It’s their response to the online retail stores plan to improve shipping and add more products in their inventory.
The move to halt the sale of any devices made by Amazon could be a huge deal breaker for the online retail store. Although Wal-Mart is not necessarily the most popular source of electronic gadgets, it’s the best place to test some devices. There are consumers who prefer to touch the device first before purchasing anything. Without Wal-Mart, Amazon will limit their ability to slowly market their devices to consumers who wants to touch these devices first.
Another challenge for Amazon after the halt of sales in the Kindle devices in Wal-Mart is the fact that holiday season is coming in a couple of months. Online shopping is on the rise but traditional hunting for the best deals is still a very popular practice. Without the Kindles displayed in Wal-Mart, Amazon is limiting their presence. The Kindle is still available in other electronics store but Wal-Mart offers wider space to try out these devices.
Last but not the least, halting the sales of Kindles in Wal-Mart could pose some problem for the Kindle HD. The latest version of Kindle offers improved graphics and hardware to support HD gaming and faster interaction. Without the Kindle HD in Wal-Mart’s inventory, sales could dip a little bit.
Amazon is currently dealing with the repercussions of their business decision. Kindle sales might dip a little bit but they are pushing their wares for customers and Kindles are naturally part of their marketing plan to improve their sales and online business.