next »

[melba_frilkins]

Is Amazon the online equivalent of Walmart? They both seem to be spreading their tentacles into everything.

[bacardiandlime]

Woot! Love me some BARGAINS.

[barred_owl]

Is Amazon the online equivalent of Walmart? They both seem to be spreading their tentacles into everything.

It's possible, although the diversity of Amazon's inventory may be greater than Walmart's--if that's what you mean by "spreading their tentacles."

Although it's a slightly different genre, I'd add Ebay to the list--I forget the stats, but I think there are now more new products sold on Ebay than there are collectibles (ebay's original purpose).  And let's not forget that Paypal, which can be used as a means of paying for products purchased on Amazon and Walmart .com, is owned by Ebay...

Was there another angle on the Walmart vs. Amazon comparison that you were thinking of, Melba?  

[pigou]

I really like this infographic comparing the two retailers: http://onlinemba.com.s3.amazonaws.com/walmart-vs-amazon.jpg

Apparently, amazon is 19% cheaper than Walmart... (I have no idea on the basis of which items this was calculated.)

If I had to name a difference (beyond the obvious that Amazon is online-only), I'd say it's customer service. Amazon isn't just aiming for low price, but they have outstanding service to go with it. A charger of an item I bought broke, and I had a completely new item 2 days later. One item I returned because I didn't like it, and they refunded me even the express shipping surcharge (for Prime).

I hope they'll be able to put up a fight with Netflix. It seems to me they could easily enter the DVD shipping market, given their logistic network. Although I can see why they would focus on streaming, the selection is quite a bit smaller than what could otherwise be offered. The lack of competition hasn't done movie rentals any favors.

[melba_frilkins]

Was there another angle on the Walmart vs. Amazon comparison that you were thinking of, Melba?  

I do think that's the angle I was getting at. It's just weird that I love to shop Amazon and hate hate hate Walmart. I hate the actual experience of shopping Walmart, but I also hate their apparent desire to monopolize all of Retail America. But then if Amazon seems poised to dominate Retail America Online, why do I still love them so?

[barred_owl]

Was there another angle on the Walmart vs. Amazon comparison that you were thinking of, Melba? 

I do think that's the angle I was getting at. It's just weird that I love to shop Amazon and hate hate hate Walmart. I hate the actual experience of shopping Walmart, but I also hate their apparent desire to monopolize all of Retail America. But then if Amazon seems poised to dominate Retail America Online, why do I still love them so?

Perhaps because of the relative anonymity of buying something online vs. having to wait in a check-out line?

Because only Amazon has that first edition, autographed copy of "Of Mice and Men" that you've been waiting to find?  (just making that up, but it's possible)  And because you have additional options to choose from on Amazon?  I.e., if you want a particular red sweater, you can search diligently until you find the ONE sweater that really suits your needs instead of settling for the "made in a sweatshop somewhere" Walmart version?

Because Amazon doesn't have to hold public hearings about whether it should or should not erect a "super-store" in Small Town, U.S.A.--it's already a superstore?

Because Walmart holds rallies for its managers that amount to something along the lines of a gigantic brainwashing cheerleading session?

Because Walmart crosses over into the grocery market so much more readily than Amazon and, therefore, is a more day-to-day "need" than Amazon?

Because Amazon provides seasonal employment here in the U.S. to thousands of folks who would otherwise be relying on SS income or no income at all?  (Granted, such seasonal employment is localized to the SW U.S. and is temporary.)

I don't know, Melba--I'm with you.  I HATE Walmart just for being a huge corporation that claims to be so "Made in the USA" friendly, yet imports probably 98% of the stuff it sells.  I gag every time I see the "Local Produce" sign hanging above a cart of year-old apples at our local Walmart, knowing that nearly ALL of the remaining inventory is either made in or comes from China or, in the case of produce, some place other than the U.S. (except for apples and potatoes).


Oooh...Just thought of one other reason why Amazon might be preferable to Walmart:  my feet don't ache after an hour of browsing amazon. com, like they do traversing the mile-and-a-half (it seems) of aisles at our local Walmart....

[notaprof]

At Amazon you don't have to deal with a store that never has  enough check-out lanes for the number of shoppers there. I have never been in a Walmart where I didn't spend at least 15 minutes in the check out line where there was a bank of 25 check-out lanes and perhaps half would be manned with a clerk.  

At Amazon, you don't have to deal with a clientele that can include people who have apparently not been socialized to polite society.  (These people do exist in other places but not in the same concentration as they do at Walmart.)

At Amazon, you don't have to shop in a place that has been destroyed by earlier shoppers.

I worked at a Walmart at one point in my life.  I am glad I had the experience to gain some empathy for the employees who are trapped in such jobs.  However, I really have no idea of the working conditions of employees at Amazon so I cannot judge.

Fortunately, I have other shopping options here that I did not have in other places I lived so I can manage to never enter a Walmart ever again.  But I have lived in places where it was the only option.  I would have been very grateful to have had Amazon as an option when I lived in one of those places.

[southerntransplant]

Because only Amazon has that first edition, autographed copy of "Of Mice and Men" that you've been waiting to find?  (just making that up, but it's possible)  And because you have additional options to choose from on Amazon?  I.e., if you want a particular red sweater, you can search diligently until you find the ONE sweater that really suits your needs instead of settling for the "made in a sweatshop somewhere" Walmart version?

I think this is why. You're really buying what you want, as opposed to a pair of Faded Glory trousers that you think look close enough to Dockers.

For the record, I don't hate Wal-Mart - much. If you live in a small town that isn't near much competition, having some of the big chains set up nearby tends to make the local shops either take their game up several notches or fade away. I'm all for locally-owned businesses until I'm faced with the choice of either paying $10 for a box of rusty nails or driving an hour to the nearest Home Depot.

[prytania3]

Amazon is a publicly-traded company, and so is Wal-Mart.

Both want to deliver the lowest prices at whatever cost.

Deal.

The Waltons do dress a bit better than Jeff Bezos, though.

[questor1]

Besides everything already mentioned, a lot of this is about branding, the perceived personality or characteristics of a store/retail such as WalMart and Amazon. When people say they love or hate -- that is a strong reaction to both which are commercial, ways to buy. I would agree that most people prefer Amazon to WalMart, maybe because they are comfy at home or at the office sitting down warm and snug buying from Amazon rather than pushing a cart in a big unpleasant warehouse.

[southerntransplant]

Both want to deliver the lowest prices at whatever cost.

My brother once worked for a company that made safety equipment - back supports, etc - and had dealt with Wal-Mart. He said that, while they negotiated the hell out of you, you knew the deal walking in. They were not going to be nice, but they were going to be honest.

[hipgeek]

I prefer Amazon.  

I am lazy and like to stay home whenever I can.  

I am also frugal and I agree with the conclusion of the graph Pigou linked to that more money ca be saved through calculated Amazon shopping (perhaps not for groceries but I don't generally get groceries at Wal-mart either--when calculating cost, quality should also always be a factor).

One clear benefit of Amazon shopping over Wal-mart shopping is that if I'm shopping Amazon and I have to use the restroom, I don't feel horribly skeeved afterwards.  But, I don't hate Wal-mart.  Most of my workout yoga pants and t-shirts came from there and those clothes have proved to be very good in terms of both quality and price.  

[wegie]

Besides everything already mentioned, a lot of this is about branding, the perceived personality or characteristics of a store/retail such as WalMart and Amazon. When people say they love or hate -- that is a strong reaction to both which are commercial, ways to buy. I would agree that most people prefer Amazon to WalMart, maybe because they are comfy at home or at the office sitting down warm and snug buying from Amazon rather than pushing a cart in a big unpleasant warehouse.

This.

In a previous life, WH spent several months visiting warehouses and logistics facilities across Europe when doing the due diligence for a series of Collateralised Debt Obligations for a big commercial property firm. The one place he hated above all the others was the Amazon fulfillment warehouse. Loud music, cold, drafty, workforce looked like zombies, Stakhanovite announcements on the tannoy. He ranted for *days* after visiting that place.

He actually preferred the logistics centres for ASDA/Walmart.

[username2]

I prefer amazon for the reasons mentioned above. Walmart is also in some ways more damaging to local businesses as a bricks and mortar competitor, because for some items you do have to look or try them in person.

Walmart exerts pressure to squeeze suppliers to reduce prices, whereas amazon encourages price compression by the market mechanism rather than direct influence. Amazon is cheaper by cutting out the middle man, allowing wholesalers to list directly, not paying for store rent, etc.

However, my one big huge pet peeve that makes me feel guilty when I shop on amazon is that, in comparison to walmart, amazon purchases are mostly not subject to state and local sales tax. In theory you are supposed to self-report to pay, especially for big purchases, but in practice almost no one does that. This is a huge problem because not only does it make amazon purchases unfairly more attractive than local shops (i.e. tax free, a burden that local shops cannot avoid), it is scooping out tax revenue that would otherwise be used to pay for whatever sales taxes pay for in your area, including schools, infrastructure, transit, both at the state and local level.

In other words, you get your savings by shorting long term public investments, which is just great if you are a libertarian, but for the rest of us...

[pathogen]

I love them both. Walmart's great for staples (TP, paper towels, light bulbs), but the lines are long. Amazon- I'm all for the long tail. "Local" gives people the warm fuzzies, but they often don't think about what it's really accomplishing (or not).