Thursday, September 20, 2012

Wal-Mart Stores (NYSE:WMT) Opts Out Of Selling Amazon.com (NASDAQ:AMZN) Products

Wal-Mart Stores, Inc.(NYSE:WMT) reportedly has dropped out of selling Kindle products of Amazon.com, Inc.(NASDAQ:AMZN) anymore. This has made Wal Mart the second major chain to quit selling Amazon devices.

Wal Mart stated in a memo sent to store managers that it has recently made business-related decision to quit carrying Amazon eReaders and tablets beyond inventory and purchase commitments.

Wal Mart has made it clear that its decision was at par with its overall merchandising strategy. Wal Mart may dwarf other retailers in overall sales, it still lags behind Amazon and other businesses that are involved in online sales. Customers, who purchase tablets like Kindle Fire HD can buy devices more than just digital books, pushing Amazon into pronounced competition with stores.

A spokeswoman of Wal Mart has confirmed the decision and said the firm will continue selling a wide assortment of eReaders, tablets and accessories. Amazon, however, has refused to comment on this.

Wal Mart keeps on selling products like iPad tablets of Apple and Nook of Barnes & Noble’s Inc. when ‘Kindle’ is being searched on websites of Wal Mart, items that are showing up included things like screen protectors and cases as well as tablets and eReaders from other companies.

Wal Mart’s decision to drop sales of Kindles comes at a month’s time after Target Corp ceased selling the products.

The largest retailer in the world, Wal Mart rivals fiercely with Amazon that is expanding the number of goods and services delivering straight to customers.

Retailers have been very vocal about online marketplace and its contribution to the trend of ’showrooming’ products. Apparently, customers are visiting brick and mortar stores to try a certain product only to leave and place an order on an online shop, ruling out the need of paying sales tax.

Amazon is presently supporting federal legislation that targets to create national standard for Internet sales tax. This bill is being supported by Target, Barnes & Noble, Wal Mart and many other major retailers.

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