# Analyzing Amazon’s Best Buy



## mechman (Feb 8, 2007)

Source: HomeMediaMagazine


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## tripplej (Oct 23, 2011)

In my opinion, it would be in Amazon's best interest not to buy Best Buy. Too much overhead.

To compete online, they are going off low cost. With buildings, employees, and all the other things that brick-and-mortar have to pay, it is not worth it. 

Best to stay online and compete that way. Besides, they are doing very well as it is the way they are functioning.


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## pharoah (Jul 21, 2012)

personally i think online everything kinda stinks.it is doing away with being able to go in look and listen.which i personally think listening to equipment.is very important before a purchase.


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## tripplej (Oct 23, 2011)

pharoah said:


> personally i think online everything kinda stinks.it is doing away with being able to go in look and listen.which i personally think listening to equipment.is very important before a purchase.


I agree with you but I believe this is only true for the "true" audiophile which is not Amazon's target market. The vast majority of folks on amazon when looking for items are looking for low cost with good reviews for items. They will be content with sub performance instead of a "true" audiophile who wants superb sound.. For them, they want to touch and feel and hear the audio but for Joe six pack down the street, he just wants something that sounds good with low cost.


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## Sonnie (Apr 11, 2006)

I am Prime buyer at Amazon... no tax and free shipping... and generally lower than anyone else with their pricing. However, I don't buy a lot of super big ticket items from them... it is mostly small ticket stuff. 

My recent buys have been as follows:
 

 2 of DFL20S-W(White) CNB Super HIGH resolution of 600 TV Lines (DVD quality) Color Dome Video Surveillance Security Camera 
Howard Leight FUS30-HP Fusion Earplug Reg Corded In Hearpack (3 Pair) 
 ArmorSuit MilitaryShield - Samsung Galaxy S3 Screen Protector Shield + Lifetime Replacements (AT&T, Verizon, T-Mobile, Sprint, U.S. Cellular) 
 STK's Canon NB-6L Battery Pack - 1600 mAh for Canon Powershot S95, D10, SD1300 IS, S90, SD1300IS, SD1200 IS, SD4000 IS, Elph 500 HS, SD3500 IS, SD1200 
Scosche 50-Feet 16-Gauge Speaker Wire-Blue 
ABS Sheet, ASTM D4673, Black, 3/8" Thick, 12" Width, 12" Length 
 PAC TR-4 Low Voltage Remote Turn-On Trigger
Muscle and a Shovel 
Essential Liberty 
Metra 72-5600 Speaker Adapter for Select Ford Vehicles 
 OEM LGIP-340NV / SBPP0026903 Cell Phone Battery 950 mAh LG Cosmo Battery, LG Octane Battery 
Polaris 280 Quik Disconnect D29
All in the last 30 days... I am a regular for all kinds of things. I also buy most of my Blu-rays there.

The biggest items in the last few months have been...


UWS TBSD-69-SL-LP-BLK Black Single Lid Slim Line Aluminum Toolbox with Beveled Insulated Lid 
MoJack MJXT 500-Pound Lift For Tractors And Zero Turn Lawn Mowers 
Bare-Tool Makita BTW450Z High Torque Impact Wrench (Tool Only, No Battery) 
They got just about everything you can imagine and most everything I can get in my hands within two days... they even deliver on Saturday with their Prime membership.

I would NOT want them to buy Best Buy, because then they would have to charge me tax because they have a store in my state.


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## J&D (Apr 11, 2008)

I think these Best Buy threads are interesting. I am a bit biased as I live near their HQ (albeit in a nearby state) but I do think Amazon has had a bit of an unfair advantage over the yellow and black. I also think it would be a bit of genius for Amazon to acquire their own showrooms. 

Why? Because BB should be ripe for the picking with the recent downturn in sales. There is also quite a movement going on with regard to states enforcing the collection of sales taxes in a time when state and local budgets are bone dry. Amazon may just be forced to collect sales taxes anyway and this would definitely streamline that effort being able to piggy back off of BB's history and system of collecting and remitting sales taxes.

How would this benefit the consumer? Amazon's ability to completely reshape a combined online and brick and mortar experience. Up until this point most traditional B&M's have went online searching for elusive profits only to scavenge their own pockets. Amazon would be taking their online presence to the B&M experience!! There is an opportunity here to do some really cool things like use the incredible amount of intelligence they have on the consumer and our shopping habits to customize regional stores and be sure they carry items that they already know people want immediate access to. 

Amazon may also be able to carry a wider array of products than BB is carrying today. There will always be some issues with regional territories and dealers but my guess is that with most of the mid-fi showrooms dark Amazon could flex their muscle a bit and be able to carry a much more interesting array of products to satisfy the low end through to the high end.

It would be very interesting and at the same time continue to provide much needed jobs.


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## tripplej (Oct 23, 2011)

Thanks for the info Sonnie.

With the advantage of being a Prime buyer, Amazon does have it's advantages. Also, with prime, customers get streaming options as well. 

I don't think anybody wants Amazon to buy Best Buy. It just wouldn't help them in the end.


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## tripplej (Oct 23, 2011)

J&D,

From what I can tell from the latest news, looks like Best Buy may go private if Shultz gets his way then I doubt Amazon or anybody else would buy it. 

There are pro and cons for having a store for Amazon.. For most people I think the saving of tax is the main reason they want Amazon to stay away from Best Buy. Also, with the overhead of building rent/taxes, payroll and utility costs for the building , I don't think Amazon will want to pay that much overhead. 

It is an interesting concept for sure. We will have to wait and see what happens.


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## hjones4841 (Jan 21, 2009)

The quality/knowledge of the sales staff would have to go up quite a bit, I would think. I have had times when a well meaning sales person would offer to help, but have no idea where it was in the store.

Plus, Amazon prides itself on customer service, deservedly IMHO. My experience is that BB is only OK on that. Example - Around here their "order it online and pick it up at the store" is useless. The few times I tried it, I would end up spending at least as much time at the Customer Service counter as it would have taken me to find the stuff and checkout.

I, too, have been an Amazon Prime member for several years. Even when something important breaks, I sometime can wait to get it overnight for the extra $4 - less than the gas it would take to go pick it up. They recently raised the Saturday overnight to $8.

I see it as a losing proposition for me if Amazon has retail outlets. No doubt all prices would increase.


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## NBPk402 (Feb 21, 2012)

I hope they don't buy Best Buy.


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## andy_c (Aug 8, 2006)

Since July of this year, Amazon has begun collecting sales tax in Texas. This is a hit for me of over 8 percent, so I routinely check other places now after checking the Amazon price.

I've had some curious results, including getting the hard-to-find CD of Art Blakey's only album on the Impulse label (my favorite Art Blakey album) at - of all places - walmart.com and using in-store pickup. This is handy, as it allows you to pick it up at your convenience. There's still sales tax, but Amazon didn't offer this item directly, and their affiliates had it at a higher price than Wal-Mart did. That pickup is convenient for me, as I do most of my grocery shopping there anyway.

If online vendors keep knuckling under to the states regarding sales tax, it could open up new opportunities for unexpected players.


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## tripplej (Oct 23, 2011)

I am also from Texas and I do search around but often times Amazon has the lower price even with sales tax and shipping. The other day, I had to buy a case for my ipad2. The folks at the apple store recommended for me to buy an otterbox. I went to best buy and they had it for $99. Amazon had it for $49. This is half off! For both places you have to pay sales tax. Even with shipping costs (less then $10), Amazon still had the better deal. So, as long as Amazon can keep prices low, even with sales tax, it is a win win for them and the end user.


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## andy_c (Aug 8, 2006)

Online shopping is getting more complicated for Texans now. I recently found out that Logitech is discontinuing the Squeezebox product line, so I decided to buy myself a spare Touch. Several places, including Amazon, had them for $240. One of those was Tiger Direct, and I decided to try them. I began my order placement, entering my name, address, etc., but not the credit card info. At this point, the form told me my sales tax was zero. Then it asked for my credit card info. I entered that, and then got a message saying "Your shipping options have changed. Please review them before placing your order." So I looked at the shipping options at the top of the page, and there were indeed new options that weren't there originally. Then I happened to glance at the bottom of the page and saw they had added sales tax, around 20 bucks. They didn't tell me about that. I thought it was a sneaky way to do business, so I backed out of the deal.

I couldn't get the $240 price without tax, but I did find a place that sold them for $250 without tax, so I still saved myself $10 over the $240 + $20 tax price.


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## tcarcio (Jun 27, 2007)

Buying BB would be a big mistake for Amazon. They only have an advantage now because they can charge less than BB on most items. If they buy BB they would have to charge or meet the same price they charge online at the B and M store and if they don't no one that knows better would by from the store. Although not many people no better.....:rubeyes:


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## alphaiii (Nov 30, 2007)

I read today that Amazon is now collecting sales tax for PA orders as well...

Seems it may only be a matter of time before more states demand the same from Amazon.... and eventually online retail in general.. so the "no sales tax" advantage may soon disappear.


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## informel (Jun 21, 2011)

The government cannot continue to loose money like that, so I bet that soon you will have to pay tax everywhere.

As far as brick and mortar goes, I think most of them will vanish. This is a normal thing.
When automobile became popular, I bet a lot of peoples who use to make shoe horse went out of business, there is nothing you can do.

I think the very specialize places who sell expensives equipment will remain, if you are to spend over 20K, you will want to listen to it.


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