CBA Industry Blog

Retailers oppose Amazon App Attack

Amazon’s predatory tactic to exploit brick-and-mortar stores as showrooms with an app that promises added discounts for buying from Amazon while in a store has drawn fire from the Retail Industry Leaders Assoc. and other retail associations.

Amazon’s “Price Check” app offers customers an additional 5% discount up to $5 off Amazon’s price on up to three qualifying products in eligible categories, including electronics, toys, music, sporting goods and DVDs. Amazon anticipates the Dec. 10 offer will be one of its biggest days of the year for Price Check.

Katherine Lugar, RILA’s executive VP of public affairs, said Amazon’s exploitation of a pre-Intenet tax loophole is resulting in a 6%-10% perceived price advantage over the competitors on Main Street.

“Amazon’s aggressive promotion of its Price Check App shows the lengths they are willing to go to exploit this tax loophole and is a stark reminder of why Congress needs to act to protect retailers on Main Street,” she said. “A failure to act is an implicit endorsement of a subsidy of Amazon, a subsidy that distorts the free market and puts jobs on Main Street at risk.”

CBA has joined RILA, ABA, and other associations in supporting bipartisan congressional legislation that would require Internet-only retailers like Amazon to collect and remit local sales and use taxes that brick-and-mortar retailers are forced to pay. The Main Street Fairness Act sets up a national system that streamlines collection and payment of local taxes.

See http://www.cbaonline.org/Advocacy/mainstreet.htm.

Comment below or on CBA’s Facebook page.

 

Amazon targets brick-and-mortar in app attack

Amazon releases app that lets consumers check prices in physical retail stores in comparison with Amazon prices; offers $5 discount Dec. 10 as an incentive.

In a press release from yesterday, Dec. 6, Amazon announced their newPrice Check app and an incentive program on Dec. 10 meant to get consumers signed up and using the app.

According to the Amazon press release:

“Year-round, the Price Check by Amazon app allows shoppers to makesure a deal is really a deal. And on Dec. 10, the simple act of price checking while shopping in physical retail stores will get customers an additional 5% discount (up to $5) off Amazon’s price on up to three qualifying products in eligible categories, including electronics, toys, music, sporting goods and DVDs. Amazon anticipates December 10^thwill be one of the biggest days of the year for Price Check.

“ ‘The ability to check prices on your mobile phone when you’re in a physical retail store is changing the way people shop,’ said Sam Hall, director of Amazon Mobile. ‘Price transparency means that you can save money on the products you want and that’s a great thing for customers. Price Check in-store deals are another incentive to shop smart this holiday season.’

“In addition to these one day, in-store deals, shoppers can also start submitting in-store prices with the Price Check app, ensuring they are really getting a deal and allowing all Amazon customers to get the lowestprices year-round.

“ ‘We scour online and in-store advertisements from other retailers, every day, year-round. Now, we are enabling customers to use thePrice Check app to share in-store prices while they search for the best deals. This is a powerful opportunity for customers to get involved and ensures Amazon customers get the best possible prices,’ said Hall.

“The Price Check by Amazon app is available for iPhone and Android and can be downloaded for free from the Amazon Appstore, Android Market and App Store for iPhone. Price Check appusers can ‘price check’ using four input methods:

•  Scan a barcode: Amazon's barcode scanner will match an item and provide pricing from Amazon.com and other online merchants in seconds. One exclusive feature to the Android version of Price Check is the ability to scan in either portrait or landscape mode, making it faster and easier to find products.
• Snap a picture: Snap a photo and instantly match the picture to books, DVDs, CDs, video games and more.
• Say the product name: Speak the name of a product to return accurate product matches and pricing from Amazon.com and its other online merchants.
• Type your search: Type the product name to instantly find products and prices.”

What do you think?

Comment below.

Comment on CBA’s Facebook page.