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I'm guessing the reaction from Amazon will be to immediately put more downward pressure on the prices on the _key items_ that fuel Walmart's business (those of

I'm guessing the reaction from Amazon will be to immediately put more downward pressure on the prices on the _key items_ that fuel Walmart's business (those of which that can be bought on Amazon anyway). I'm sure they know exactly what those are.

adamfeldman 12y ago
Here's how Amazon put price pressure on Diapers.com to force them into being acquired by Amazon (via http://allthingsd.com/20131010/how-jeff-bezos-crushed-diapers-com-so-amazon-could-buy-diapers-com/ http://allthingsd.com/20131010/how-jeff-bezos-crushed-diaper...) "Amazon has a secretive unit — dubbed Competitive Intelligence — responsible for ordering large quantities of goods from competitors to analyze their businesses. This division eventually became aware of Diapers.com and its parent company Quidsi, and dispatched M&A chief Jeff Blackburn to initiate acquisition discussions. Quidsi’s founders originally rebuffed acquisition offers from Amazon. So Bezos’s Amazon sent them a message, Stone [author of a book on Bezos and Amazon called 'The Everything Store'] explains: “Soon after, Quidsi noticed Amazon dropping prices up to 30 percent on diapers and other baby products,” Stone writes. “As an experiment, Quidsi executives manipulated their prices and then watched as Amazon’s website changed its prices accordingly. Amazon’s pricing bots — software that carefully monitors other companies’ prices and adjusts Amazon’s to match — were tracking Diapers.com.” Diapers.com revenue growth eventually slowed under Amazon’s pricing pressure, and the founders engaged in acquisition talks, agreeing to a $540 million buyout. As Stone tells it, Walmart eventually made Quidsi a better offer of $600 million, but it was too late by then. “The Quidsi executives stuck with Amazon, largely out of fear,” Stone writes."
- dingaling 12y ago
  Very interesting. I haven't found Amazon UK particularly 'cheap' for the past couple of years at least, usually their day-to-day prices are about the same as mainstream and sometimes rise quite markedly for short periods. Their primary advantage here seems to be centralised shopping and convenience of payment. An example was a book on which they were offering 3 pence discount on the RRP. Hardly worth bothering about, but very low friction to buy from them instead of another site offering £1 off because my payment and delivery details are already lodged with Amazon.

adamfeldman 12y ago

Here's how Amazon put price pressure on Diapers.com to force them into being acquired by Amazon (via http://allthingsd.com/20131010/how-jeff-bezos-crushed-diapers-com-so-amazon-could-buy-diapers-com/ http://allthingsd.com/20131010/how-jeff-bezos-crushed-diaper...) "Amazon has a secretive unit — dubbed Competitive Intelligence — responsible for ordering large quantities of goods from competitors to analyze their businesses. This division eventually became aware of Diapers.com and its parent company Quidsi, and dispatched M&A chief Jeff Blackburn to initiate acquisition discussions. Quidsi’s founders originally rebuffed acquisition offers from Amazon. So Bezos’s Amazon sent them a message, Stone [author of a book on Bezos and Amazon called 'The Everything Store'] explains: “Soon after, Quidsi noticed Amazon dropping prices up to 30 percent on diapers and other baby products,” Stone writes. “As an experiment, Quidsi executives manipulated their prices and then watched as Amazon’s website changed its prices accordingly. Amazon’s pricing bots — software that carefully monitors other companies’ prices and adjusts Amazon’s to match — were tracking Diapers.com.” Diapers.com revenue growth eventually slowed under Amazon’s pricing pressure, and the founders engaged in acquisition talks, agreeing to a $540 million buyout. As Stone tells it, Walmart eventually made Quidsi a better offer of $600 million, but it was too late by then. “The Quidsi executives stuck with Amazon, largely out of fear,” Stone writes."

dingaling 12y ago
Very interesting. I haven't found Amazon UK particularly 'cheap' for the past couple of years at least, usually their day-to-day prices are about the same as mainstream and sometimes rise quite markedly for short periods. Their primary advantage here seems to be centralised shopping and convenience of payment. An example was a book on which they were offering 3 pence discount on the RRP. Hardly worth bothering about, but very low friction to buy from them instead of another site offering £1 off because my payment and delivery details are already lodged with Amazon.