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    The Amazon App That's Driving Retailers Crazy

    The Amazon App That's Driving Retailers Crazy

    Amazon's Price Check app lets customers use a smartphone to scan the barcodes of items they find in a retail store. The app does the comparison shopping, and tells them if a better deal on the same purchase can be had online. This is driving brick-and-mortar merchants bananas.

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    The online retail giant already enjoys a major tax advantage: in most jurisdictions, Amazon collects no sales tax on customer purchases. Now they're giving people who have already come out to stores a reason to not spend there, presenting another potential threat to small businesses in the height of their busy season. Amazon is even throwing in a 5 percent discount on items that customers scanned in-store before purchasing online.

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    Resistance is growing, the Los Angeles Times reports.

    Sen. Olympia Snowe, (R-Maine) entered the fray, calling the promotion "anti-competitive" and "an attack on Main Street businesses that employ workers in our communities."

    ...

    Snowe urged Amazon to stop the promotion being offered Saturday. "Small businesses are fighting every day to compete with giant retailers, such as Amazon, and incentivizing consumers to spy on local shops is a bridge too far," she said in a statement.

    Retail groups agreed. A spokesman for the Alliance for Main Street Fairness said "no retailer can compete" with Amazon because as an online retailer, the company is not required to collect sales taxes in many states.

    The Retail Industry Leaders Assn., which represents many big-box retail chains, said the app unfairly encourages shoppers to use bricks-and-mortar shops as "showrooms" to check out a product before buying online.

    But Amazon is not backing down, and consumer advocates told the Times that the app was good for shoppers. They're the ones who will enjoy better deals as a result. If anything, it improves the competition that business advocates say capitalism needs to thrive, one advocate told the Times. "It doesn't make sense to call it anti-competitive behavior," he said.

     

    147 comments

    • Lupis Noctum  •  5 mths ago
      The upside for independent retailers is this: any customer you lose to these kinds of antics probably wasn't a customer worth your time & energy anyway. If they're just using you for a stalking horse, chuckle at them as they wander away fondling their iPhones and turn back to taking care of your real customers.
      • . 5 mths ago
        naawww...you're wrong. Independent retailers NEED every dollar and customer they can get. There is NO such thing as, "wasn't a customer worth your time & energy anyway" for using an app. Sour Grapes.
      • Lupis Noctum 5 mths ago
        Crusher, you are correct to a point. Independent retailers do need every customer they can get. However, not every person in the store is an actual customer. Customers spend money, the legion of time wasters do not.

        Anyone who's ever worked retail knows exactly what I'm talking about.
      • YahooUser 5 mths ago
        I know of folks who nickle and dime that they would not mind returning a $1000 item if they find it selling for $5 less somewhere else. Never mind the time wasted to comparison shop, the gas expended to return the item and buy at the cheaper store.
    • PerformanceArt  •  Livingston, United States  •  5 mths ago
      There are a dozen ways to legally jam the WiFi &OR& cell-phone signals in almost any retail store. Any that do so should tell any complainers to talk to AMAZON. Any that don't do so aren't smart enough to survive in a tight economy, anyway.
      • CG 5 mths ago
        Good luck with that when there's an emergency at an aisle. Especially if there isn't an employee nearby that can run to the nearest landline. Jamming Wifi/cell-phone signals will be a good way for that multi-million lawsuit.

        Being penny-wise from jamming signals could very well be pound-foolish.
      • Drew 5 mths ago
        Gee, how did human life exist before cell phones? It's amazing we survived.
      • Tom 5 mths ago
        Having a working cell-phone isn't the "right" people seem to think it is. It's a privilege that can be taken away at any time.
    • cocheta  •  5 mths ago
      Isn't amazing that we, as consumers, gleefully participate inactivities that devastate local economies....all in the pursuit of 'the cheapest price'?

      Why is I see is less and less choice, small businesses struggling or being driven out, and local tax bases taking the hit. With the loss of those businesses go jobs, community support and a viable economic system.

      So, yeah...those of you who keep chasing the 'cheapest price' chimera....just keep on what you're doing, but don't complain about the condition of the economy and how so many people are out of work. You're contributing to the problem.
    • CJ  •  5 mths ago
      I only buy online if I can't get an item locally. I like having the convenience of local stores if something breaks and I need to replace them quickly. And we won't have local stores if we do all of our shopping on line. But there does need to be some equality in taxes. Either the internet stores should have to charge taxes or the local stores should be exempt from them.
    • Atilla  •  Voorhees, United States  •  5 mths ago
      Of course Amazon doesn't include the shipping costs in their on-line price comparison. You also have delays in arrival, and if you have to make a return, you have to trust the mail-in system. If you or your intended victim wants to make an Exchange - lots of luck.
    • David  •  Sherman, United States  •  5 mths ago
      Welcome to the information age. If your business model depends on uninformed consumers, you are SOL.
    • Ray  •  Austin, United States  •  5 mths ago
      I went to Best Buy to look for a software program for my computer and found it for like $100 and then I looked on Ebay found it for around $60 and no tax. Well Ebay won.
    • Jim  •  5 mths ago
      Maybe states should eliminate sales tax and then their brick and mortar store will be on the same playing field. It is always easier to blame a company like Amazon for governmental failure. It is called misdirection and magicians use it to trick an audience. In this case, the government uses it to trick the population they represent.
    • joe b  •  Virginia Beach, United States  •  5 mths ago
      how is this considered "anti-competitive" must be some more of that washington double-speak.
    • Liberaltarian  •  5 mths ago
      The free market only works effectively to the benefit of all producers and consumers when there is a level playing field. Either require the sales tax for online purchases or abolish the sales tax for brick and mortar businesses. Government Representatives need to get the job done or resign.
      • GodsHolyTrousers 5 mths ago
        The government abolishing taxes for the benefit of the shop owner and consumer?
        ROFLMAO Banksters never have enough blood money...
    • Mei Wei  •  Exeter, United States  •  5 mths ago
      Shopping on Amazon includes Shipping Fees!!! This jacks up the price COn-si-derably!
      • rico 5 mths ago
        You can drive to the local mall for free, what kind of car do you have that has no operating costs?
      • Richard 5 mths ago
        FREE shipping on Orders $25 and Over
      • Emily 5 mths ago
        I order things on amazon that include free shipping. It's much cheaper than driving 30+ miles to a store every time I need something. I live in a tiny mountain town and amazon saves me tons of money!
    • Bustersmycat  •  5 mths ago
      the only problem with this is that it allows Amazon to basically borrow a local showroom for products without paying for that. the biggest problem with online buying is that you don't get to see the item first, to evaluate its quality and so on, something that can only be done in person, at a store. This app works around that "problem", in a way. allows the person to decide while in the store, rather than after he goes back home and looks it up on the net. allows an outside competitor to be present in the store.
    • TJ  •  5 mths ago
      I doubt this senator gives a rats ass about mom and pop shops. She probably got a phone call from walmart or taget execs
    • Mom  •  Sugar Land, United States  •  5 mths ago
      Sorry, but I'm a huge Amazon supporter. Are there actually people on here complaining on how to find the best price for stuff? My guess is you're the overpaid CEO's of the large stores who are worried that you may not be able to buy your next Ferrarri. Amazon didn't kill small businesses. Giant conglomerations like Walmart did.
    • Jknows  •  Burnet, United States  •  5 mths ago
      I know a guy who finds what he wants in a local store and buys it, then he goes home and orders one online as cheaply as possible, and when it arrives he takes the one he got online back to the local store for a refund. More trouble than I'm willing to go to, but he likes getting whatever it is right now today (benefit of brick and mortar) and also getting the best price (benefit of ordering online). I can only imagine the chaos that would ensue if everybody started doing what he does. Heh.
      • DannyB 5 mths ago
        Ever notice that all bs stories start with "I know someone who..."
      • Teknikul Suppooort 5 mths ago
        And with all the returns they have to eat, people wonder why the B&M stores are charging more and can't compete?
      • Jknows 5 mths ago
        and what's amazing is that the guy I'm talking about is named Danny and his last name starts with a B.
    • Jknows  •  Burnet, United States  •  5 mths ago
      I think people shop based on four things.

      Price
      Convenience
      Delivering what was promised
      Making the shopping event a pleasant experience

      It is rare to get all four in one shopping event. I doubt that many businesses who can't get at least 2 out of four right consistently can survive, be they online or bricks and mortar.
    • Wallio S  •  Utica, United States  •  5 mths ago
      bummer maybe prices will go down
    • calven  •  5 mths ago
      I love it, i want to see business SUFFER until we can FORCE the lowest possible prices imaginable on all items--destroying capitalism overnight--and leaving only ONE giant alive. Muuhahahahaa!
    • jgast  •  5 mths ago
      Back in the day when the idea of a home PC was just taking hold, there was a PC dealer in every strip mall. People would visit the stores, make their comparisons and buy on-line or mail order. The only ones that complained then were the PC stores AND their employees. Now that AMAZON is taking that model to the next level the cry babies are coming out of the woodwork. Hey, why don't you spent your time constructively. The real problem is MILLION dollar salaries paid to professional athletes. Those guys do nothing but drain the economy and drive up pricies for the rest of us. Athletics is great during the formative years while one is getting an education. Once that is done it's time to hang up the Nike's, get a job and contribute your efforts to the success of our great country.
    • Dylan  •  Rockford, United States  •  5 mths ago
      Reminds me of our garage sale. People showed up with scanners and went through boxes of books and DVDs - checking prices. They ended up buying a lot, and we had some good conversations in the mean time, so I didn't really mind.
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