Amazon/Walmart Going to War

[Deleted]

Toys R Us filed BK today which is a direct result of Walmart/Amazon going to absolute war with each other. They are both eating everyone else alive, forecasting goods that go through each channel has become next to impossible as one will have a flash sale one month followed by the other a month later, I have never witnessed anything like this, the last two years have been nuts.

Anyone else seeing the impact of this? I wonder how long regulators can let it go before we see antitrust.

www.google.com/amp/s/techcrunch.com/2017/06/16/amazon-wants-to-become-walmart-before-walmart-can-become-amazon/amp/

[bean29]

I don't buy toys anymore, so I really haven't noticed. Is it affecting things like cleaning products too? Maybe I should change my purchasing habits

[Deleted]

Sept 19, 2017 14:54:09 GMT -5 bean29 said:

I don't buy toys anymore, so I really haven't noticed. Is it affecting things like cleaning products too? Maybe I should change my purchasing habits

Everything....... It is causing suppliers to have to beef up their inventory levels which in turn raises prices for consumers and increases the chance of stockout. The main impact I see for consumers today is their # 1 choice for an item not being available and having to take a sub. It is leading to lower prices today and higher prices down the road when all the competition is gone.

[wvugurl26]

I never buy at Toys R Us anyway. They are pretty much always the most expensive option unless they have a big sale or clearance. When I'm buying gifts they come from Amazon, Walmart and Target.

[NoNamePerson]

Let em have at it. Last I heard both WalMart and Amazon are building distribution/sorting centers here. Of course I'll believe it when they are built and hiring.

Haven't been to Whole Foods since Amazon bought them out but may pop in next week just to see if any changes. I don't shop there only because I am a Fresh Market shopper and to me Whole Foods is just FM on steroids and last time in WF the service was absolutely terrible. And no, I'm not one of those little ole ladies who needs hand holding. But I can't reach over the counter to get the fish I wanted and was basically ignored by a clerk on electronic device!! Not the first time but twice told me to drive on by!!

[Ryan]

People think Amazon is cheaper on a lot of things, and they are, but it's definitely not in the toys department.  Most items that are a name brand are sold through 3rd party sellers, so there is another middle man included there.  The advantage that Amazon has is that they also offer a wide array of private label products, which are FAR cheaper than Walmart.

At this point, it's just the way the world is going so I'm not sure what the gov't can really do.  

[Tiny]

I thought ToyRUs was in serious trouble a few years ago? I know they started closing stores a decade ago.  I know they couldn't/didn't come up with a game plan for dealing with Big Box stores (like Walmart/Target/Meijer/etc) that sell groceries and everything else imaginable nor tdid they come up a game plan for dealing with on-line purchases. 

I'm not disputing that Amazon/on line retail didn't play a part in their demise...  it's just a demise that's been happening for more than a few years.

I suspect that in the future anysized seller who cannot "sign up" with a Distribution system (like Amazon or Walmart) will have a hard time surviving in the future.

What kind of "monoploy" does Amazon have - other than their servers and their distrubution system... ??   Amazon isn't making toys - they are providing a venue for companies to peddle their wares. 

 

[The Walk of the Penguin Mich]

I think that the last time I went into Toys R Us, it was to buy a game.  There was squat on the shelves

[Deleted]

Sept 19, 2017 16:58:55 GMT -5 Ryan said:

People think Amazon is cheaper on a lot of things, and they are, but it's definitely not in the toys department.  Most items that are a name brand are sold through 3rd party sellers, so there is another middle man included there.  The advantage that Amazon has is that they also offer a wide array of private label products, which are FAR cheaper than Walmart.

At this point, it's just the way the world is going so I'm not sure what the gov't can really do.  

They can Ma Bell it and break them into pieces.

[Deleted]

Sept 19, 2017 17:08:46 GMT -5 Tiny said:

I thought ToyRUs was in serious trouble a few years ago? I know they started closing stores a decade ago.  I know they couldn't/didn't come up with a game plan for dealing with Big Box stores (like Walmart/Target/Meijer/etc) that sell groceries and everything else imaginable nor tdid they come up a game plan for dealing with on-line purchases. 

I'm not disputing that Amazon/on line retail didn't play a part in their demise...  it's just a demise that's been happening for more than a few years.

I suspect that in the future anysized seller who cannot "sign up" with a Distribution system (like Amazon or Walmart) will have a hard time surviving in the future.

What kind of "monoploy" does Amazon have - other than their servers and their distrubution system... ??   Amazon isn't making toys - they are providing a venue for companies to peddle their wares. 

 

Their next step is to start selling their own branded because that is where the next profit layer lies, the first step is secure the distribution network. I’m just falling where I see it going. I worked for a large distributor that began doing exactly that, they are only in one sector however.

[wvugurl26]

Sept 19, 2017 19:03:17 GMT -5 @aj said:

Sept 19, 2017 16:58:55 GMT -5 Ryan said:

People think Amazon is cheaper on a lot of things, and they are, but it's definitely not in the toys department.  Most items that are a name brand are sold through 3rd party sellers, so there is another middle man included there.  The advantage that Amazon has is that they also offer a wide array of private label products, which are FAR cheaper than Walmart.

At this point, it's just the way the world is going so I'm not sure what the gov't can really do.  

They can Ma Bell it and break them into pieces.

Yeah and 30 years later most of the baby bells have come back together with anti trust approval for each and every merger.

[Ryan]

Sept 19, 2017 17:08:46 GMT -5 Tiny said:

I thought ToyRUs was in serious trouble a few years ago? I know they started closing stores a decade ago.  I know they couldn't/didn't come up with a game plan for dealing with Big Box stores (like Walmart/Target/Meijer/etc) that sell groceries and everything else imaginable nor tdid they come up a game plan for dealing with on-line purchases. 

I'm not disputing that Amazon/on line retail didn't play a part in their demise...  it's just a demise that's been happening for more than a few years.

I suspect that in the future anysized seller who cannot "sign up" with a Distribution system (like Amazon or Walmart) will have a hard time surviving in the future.

What kind of "monoploy" does Amazon have - other than their servers and their distrubution system... ??   Amazon isn't making toys - they are providing a venue for companies to peddle their wares. 

 

I don't know if I'd go so far as to say that Amazon has a monopoly, but they definitely are on their way.  Amazon's catalog is so big and they have warehouses within 0-2 days of everyone, so they essentially take a small bite out of every single brick/mortar business.  That small bite is enough to take them from slightly profitable to a loss.  A neighborhood hardware store will still sell nuts/bolts, but they are losing the sales on stuff like flashlights, mouse traps, and other not-so-urgent purchases.

[Ryan]

Sept 19, 2017 19:05:55 GMT -5 @aj said:

Sept 19, 2017 17:08:46 GMT -5 Tiny said:

I thought ToyRUs was in serious trouble a few years ago? I know they started closing stores a decade ago.  I know they couldn't/didn't come up with a game plan for dealing with Big Box stores (like Walmart/Target/Meijer/etc) that sell groceries and everything else imaginable nor tdid they come up a game plan for dealing with on-line purchases. 

I'm not disputing that Amazon/on line retail didn't play a part in their demise...  it's just a demise that's been happening for more than a few years.

I suspect that in the future anysized seller who cannot "sign up" with a Distribution system (like Amazon or Walmart) will have a hard time surviving in the future.

What kind of "monoploy" does Amazon have - other than their servers and their distrubution system... ??   Amazon isn't making toys - they are providing a venue for companies to peddle their wares. 

 

Their next step is to start selling their own branded because that is where the next profit layer lies, the first step is secure the distribution network. I’m just falling where I see it going. I worked for a large distributor that began doing exactly that, they are only in one sector however.

Amazon already has multiple brands they are selling and have successfully cut out middlemen by importing directly from China.  Amazon Elements for supplements, Amazon Basics for electronics, Amazon Essentials for clothing...and a whole lot more.

Amazon allows 3rd party sellers to come in and basically show amazon where the money to be made is.  This makes it that much easier for Amazon to make the decision on what to import, because they can import what is already selling and private label it under their brand.  There was a story a few years ago about a laptop stand that was selling for $40 on Amazon by a private label seller.  Amazon copied the design and then launched it on their own Amazon Basics line and started selling it for $20.  

[Shooby]

Kids don't seem to play with toys anymore.  They play with phones or computers or Ipads.  Kind of sad really.

As for Walmart, they have a LONG way to go if they want to compete with Amazon for online shopping.  The search engine on Amazon is the best.  You can find whatever you want.  Then you can break it down by shape, size, price, brand, color, material, type of shipping and on and on.  With the Walmart website it is very basic and thus very hard to narrow your search down quickly.  I would be happy to buy from online Walmart but Amazon is much easier and quicker to search and find exactly what I want.  I don't see any major improvements in Walmart's website so if they don't address that, Amazon will not lose any business to them.

[Ryan]

Sept 20, 2017 5:59:02 GMT -5 Shooby said:

Kids don't seem to play with toys anymore.  They play with phones or computers or Ipads.  Kind of sad really.

As for Walmart, they have a LONG way to go if they want to compete with Amazon for online shopping.  The search engine on Amazon is the best.  You can find whatever you want.  Then you can break it down by shape, size, price, brand, color, material, type of shipping and on and on.  With the Walmart website it is very basic and thus very hard to narrow your search down quickly.  I would be happy to buy from online Walmart but Amazon is much easier and quicker to search and find exactly what I want.  I don't see any major improvements in Walmart's website so if they don't address that, Amazon will not lose any business to them.

I think Amazon's search feature kinda sucks.  The problem with it is that amazon sellers try to game the search engine by putting in search terms that aren't QUITE that relevant to the product.  They want people looking for polyester boxer shorts to find their cotton boxer briefs.  

[alabamagal]

Sept 20, 2017 10:00:52 GMT -5 @sroo4 said:

I hate the search function on Amazon.  It's very clunky for browsing,  it is good if you already know what you want. 

For instance if I'm looking for a suitcase,   I will go to other sites (like Ebags) to browse,  then I'll search for it on Amazon.    Sometimes it makes sense to buy on the original site, and sometimes it makes sense to buy it off of Amazon.   

I agree.  Amazon gives you a bazillion options for the same thing.  I don't think anyone goes past page 1.

[Shooby]

Well golly gee, they are only in the top of the food chain of online retailers.

[Deleted]

Sept 20, 2017 17:24:29 GMT -5 Shooby said:

Well golly gee, they are only in the top of the food chain of online retailers.

Just because you're on top doesn't mean you can sit back and ignore feedback from customers. 

[Shooby]

Sept 20, 2017 20:32:29 GMT -5 minnesotapaintlady said:

Sept 20, 2017 17:24:29 GMT -5 Shooby said:

Well golly gee, they are only in the top of the food chain of online retailers.

Just because you're on top doesn't mean you can sit back and ignore feedback from customers. 

Of course. However i have found them to be easy to deal with compared to other online retailers.

[Deleted]

Sept 20, 2017 5:59:02 GMT -5 Shooby said:

Kids don't seem to play with toys anymore.  They play with phones or computers or Ipads.  Kind of sad really.

As for Walmart, they have a LONG way to go if they want to compete with Amazon for online shopping.  The search engine on Amazon is the best.  You can find whatever you want.  Then you can break it down by shape, size, price, brand, color, material, type of shipping and on and on.  With the Walmart website it is very basic and thus very hard to narrow your search down quickly.  I would be happy to buy from online Walmart but Amazon is much easier and quicker to search and find exactly what I want.  I don't see any major improvements in Walmart's website so if they don't address that, Amazon will not lose any business to them.

They realized that and bought Jet.com, I think you will see Walmart really raise their game online over the next year.