Retailers Irate Over Amazon Price Comparison App
Sen. Snowe calls it "anti-competitive" and an attack on small business
12/12/2011 | By James R. Hood
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ConsumerAffairs.com
| Shopping
Is Amazon's price-comparison tool that lets shoppers check out prices at competing online and local retailers a boon for consumers or an evil plot against small business?
It depends on who you ask. Sen. Olympia Snowe (R-Maine) is irate over Amazon's weekend promotion that offered customers 5% off if they checked the prices of goods on its Price Check app while browsing at a store, then ordered them online.
Retailers cried foul and Sen. Snowe took up the crusade, calling Amazon's promotion "an attack on Main Street businesses that employ workers in our communities.
"Small businesses are fighting everyday to compete with giant retailers, such as Amazon, and incentivizing consumers to spy on local shops is a bridge too far," Snowe said. "I urge Amazon to cancel its planned promotion, and look for ways to partner with Main Street, not promote anti-competitive behavior that could shutter the doors of America's small businesses."
Amazon has defended the app as pro-consumer and has managed to get at least one consumer group to come to its aid.
A spokesman for Consumer Watchdog in Santa Monica, Calif., said the Amazon app could benefit shoppers. "It could definitely be good price competition for consumers," Mark Reback said, according to the Los Angeles Times.
No comment
The National Retail Federation did not respond to a ConsumerAffairs.com request for comment but other industry groups took up the battle cry.
The Retail Industry Leaders Association said the app subverts shoppers into using retail stores as "showrooms" to check out a product before buying online.
"This is an underhanded way to send shoppers online," said Jason Brewer, the association's spokesman. "This app allows Amazon to exploit a loophole that allows them to sell the exact same product as brick-and-mortar stores and not charge sales tax."
Others saw Amazon's move as a clever promotion that would attract lots of free publicity.
"The stunt offers good value for money, particularly when you consider the price comparison app looks set to go mainstream as a new weapon in the war between bricks-and-mortar retailing and online retailing and Amazon will be leading the charge," said Gizmag.com. "The knowledge it gains will enable it to discern patterns on the exact deals their bricks and mortar competitors are prepared to do, and react in real time."
"Mobile phone retail is about to become a significant factor in purchasing decisions," Gizmag predicted.
Harry Anderson III (Mon, 12 Dec 2011 13:56:25 +0000): Competition or Unfair Competition?
Marvin McConoughey (Mon, 12 Dec 2011 15:10:20 +0000): Fair, Harry. Fair. Remember, most of the small retailers are alive because they have driven someone else out of business. The nation benefits from more effective competition. 
Michel Ditlove (Mon, 12 Dec 2011 22:44:12 +0000): Marvin McConoughey Unfair, unless they offer free shipping and no sales tax, you end up paying more on line than at a retail store, plus if "god forbid" there is a problem, god help you with the hassle and time it will take to resolve, assuming they don't double bill you. Shop where you can look a man or woman in the eye.
Ian Blackburn (Tue, 13 Dec 2011 23:13:30 +0000): I'd like to see a source for the claim that "most of the small retailers are alive because they have driven someone else out of business."
Mimi Kroncke (Sun, 18 Dec 2011 23:48:15 +0000): Marvin McConoughey - Oh sure, like the Sav-A-Lot, Walt's Nursery, or Duke's Donuts chased Walmart away!
Adonis Cornwell (Mon, 12 Dec 2011 14:34:52 +0000): The future is coming and boy is it bright. Many retailers, like LOWES have created private brands to stave off this attack on retail profits, but does that really help the consumer or just make the fat cats fatter?
Matt DeBernardo (Mon, 12 Dec 2011 15:22:20 +0000): brilliant move by amazon. I wish I thought of it and sold them the app!
Zan Mayo Glodich (Mon, 12 Dec 2011 16:15:07 +0000): Small retailers need to do some rethinking. When they don't have want I want, they expect me to "settle" for what is in stock. I'm tired of settling.
I recently tried to buy an Asus Transformer as a gift. Went to the store nearest my house but couldn't get waited on. There were two sales people, both fully occupied checking out long lines of folks buying relatively inexpensive items. No one available for me. This is an area of cheap rents for stores and plenty of college students seeking work. No excuse for understaffing. Went home and bought on ebay.
Now I need to buy a game console as a gift. Exactly the same circumstances. Back home again to buy online.
If there is no real service, why wouldn't someone just buy where the price is lowest?
Beverly Blaschko (Mon, 12 Dec 2011 23:01:54 +0000): Well Amazon does not have a reason to be pleased about prices. I have checked thier prices against other online prices and Amazon is considerably higher in a number of toys and games. I used to think they were lower but not now. some games such as Risk Onyx and Platium Scrabble were up to $20 higher. I am sure retailers can beat many of thier products of course no sales tax and free shipping needs to be considered. Buyer beware still is important.
Howie Kaplan (Tue, 13 Dec 2011 11:37:19 +0000): For me, the main reasons to buy in a store, vs online, are several, (the least of which is price): Urgent need for "X" product; the "go shoppig" experience"; personalized service, e.g. when buying an item that is complex; a place to conveniently return an item, should it not be satisfactory for whatever reason. When shopping online, one also needs to "shop around", as although one website, such as Amazon, generally has the best prices, an astute shopper always does their homework by checking various websites, and, looking for coupons for things such as free shipping and "%" discount.
Jacqueline Folwell (Mon, 19 Dec 2011 04:39:11 +0000): A lot of the retailers advertize and sell on amazon. I am not really sure a buyer ever has objections to saving money on a purchase, especially in this weak economy, however, Amazon stores don't always have the lowest prices. Shop around first.
Susan Elizabeth Spann (Tue, 27 Dec 2011 15:18:00 +0000): I use the app, but only to compare prices on the same item. I always go to a physical store when possible unless the item is not in the physical store. It helps me get the best price in the stores though.
Catherine Darsey (Tue, 27 Dec 2011 16:04:34 +0000): It would be a good idea if it just compared online stores. If I'm going to be at the store to check the price of the item I want I might as well buy it while I'm there.