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Sun Sept 25 2011 22:06:24

New Amazon Tablet Could Impact Mobile Shopping

By: Ina Steiner

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After months of speculation that Amazon would launch a tablet with capabilities somewhere between Barnes & Noble's Nook and Apple's iPad, the waiting may be over this week. Amazon is holding a press conference in New York on Wednesday where it's widely believed the company will introduce a touch-screen tablet.

Pundits say the device will help Amazon dominate in the sale of books and movies. The New York Times wrote on Sunday about the effect of Amazon's tablet on Apple's iPad:

"Apple sells movies, music and books in order to sell devices. Amazon sells devices in order to sell books, movies and music."

But why would Amazon stop at sales of digital media when it could build in a shopping interface? The company has already trained users to make purchases on the Kindle with zero friction. When using the tablet to browse Amazon for more books and movies to consume, why not shop for other items as well?

eBay has made the case for mobile shopping; it expects to double its mobile GMV to $4 billion this year, and PayPal expects to process $3 billion in Mobile Total Payments Volume this year. But while eBay has created many mobile apps for smart phones, tablets and Apple's iPad, it has had to design its shopping interface around the device, with no input into the design of the device.

Amazon has had the opportunity to build a mobile device with hardware and software specifically designed for shopping on its marketplace. The Times expects the new tablet to come in at about $250, half the price of the basic iPad, and said Amazon has shown its willingness to sell the Kindle at a loss.

I'm reminded of when Microsoft bundled its Internet Explorer web browser with its operating system, which severely impacted Netscape and helped it win the browser wars. If Amazon's tablet is as popular as the Kindle and restricts users to shopping only on Amazon.com, the tablet could give Amazon a competitive advantage over other marketplaces.

Amazon's first generation tablet is unlikely to be the holy grail of mobile shopping devices, but if it optimizes its tablet for online shopping in the long run, it would give online retailers yet another reason to sell (or continue to sell) on the Amazon marketplace.

Let us know if you think Amazon's tablet should let users shop on its site, and if you'd be more likely to shop on an Amazon tablet than another mobile device.




Comments (16) | Permalink

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New Amazon Tablet Could Impact Mobile Shopping   New Amazon Tablet Could Impact Mobile Shopping

by: pete

Sun Sep 25 23:38:36 2011

Sounds like a great idea;I wish Amazon the best of luck and hopefully my Amazon sales will continute to climb too...so sad about eBay but times change and people grow up

New Amazon Tablet Could Impact Mobile Shopping   New Amazon Tablet Could Impact Mobile Shopping

by: Tony DeLuca

Mon Sep 26 00:20:19 2011

Why would anyone want a tablet that would restrict them to shopping only at Amazon? Don't get me wrong -- I love Amazon and do a heck of a lot of shopping there, but I also love freedom of choice. If this shopping restriction is in place, the Amazon tablet may be the biggest bust since Jeff Bezo's rocket ship to nowhere.

New Amazon Tablet Could Impact Mobile Shopping   New Amazon Tablet Could Impact Mobile Shopping

by: another side of the coin

Mon Sep 26 01:02:20 2011

Regardless of the reduced cost, if I am restricted to shopping only on Amazon, I will not be purchasing this tablet. I think after the first generation, Amazon may change their tune. Sure there will be a rush, as usual with any new thing, but I will wait until all the bugs are worked out and AZ realizes many more sales will be made when opened to a full shopping mobile.

New Amazon Tablet Could Impact Mobile Shopping   New Amazon Tablet Could Impact Mobile Shopping

by: John

Mon Sep 26 06:53:07 2011

I cannot see the harm in it being a Amazon only shopping device when thats exactly what Apple do and it's not even out yet so it's impossible to say what it will and will not allow you to do. I have not bought an iPad simple because they are so expensive unless your name is Steve Jobs

New Amazon Tablet Could Impact Mobile Shopping   New Amazon Tablet Could Impact Mobile Shopping

by: MatthewOgborne This user has validated their user name.
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Mon Sep 26 07:10:42 2011

Howdy,

This is going to be an interesting one to watch unfold. I personally would have no issues with it being locked to Amazon, almost half expecting it to be so.

However, if there is a web browser included, then its going to look pretty bad if the user is locked to just Amazon (for shopping) and I'm sure it will be jumped on and "opened up" as we've seen with other devices (think jail break and the > 2hrs it took to hack the Kinetic unit).

We find out on Wednesday, so not too long to wait :)

Matt

New Amazon Tablet Could Impact Mobile Shopping   New Amazon Tablet Could Impact Mobile Shopping

by: John

Mon Sep 26 08:05:50 2011

I purchase nearly 90% on amazon. I take into account the cost factor,  for gas and traffic, my time, and shipping cost which I factor in. When the items I look for and find are within a few cents ( and I do mean pennies) of the B&M stores I use Amazon. I have purchased food, electronic items, and some tools, all shipped free in double boxes, (in some cases the amount if charged would have been as much as $19.00),  all are professionally tractable, and usually arrive before the time period stated.

Oddly enough I don't purchase books off of Amazon, I purchase them from thriftbooks.com, which I have found affordable, cheap, and received within their stated shipping time. Other then my computer,I don't use electronic devices for reading. I prefer having the book in hand.

An additional factor I find very important. I receive no junk mail associated to what I buy off Amazon or the other few  sites I use.

I find nothing even remotely associated with what I purchase in the gmail spam file, so I assume they respect my privacy in relation to what I purchase.

New Amazon Tablet Could Impact Mobile Shopping   New Amazon Tablet Could Impact Mobile Shopping

This user has validated their user name. by: Al G

Mon Sep 26 08:11:26 2011

This IBM 360/30 systems programmer has a real stupid question.

Why would you want a tablet when you have a laptop, a desktop, a smart phone?????

I mean really! I think I'm missing something here or is it best for me to return to the cabin in the woods & stay off the grid.

New Amazon Tablet Could Impact Mobile Shopping   New Amazon Tablet Could Impact Mobile Shopping

by: Susan Averello This user has validated their user name.

Mon Sep 26 09:52:38 2011

I'm reading the NY times article and yours and no where did either ever say Amazon was closing the doors to others site.
At most they brought us AOL as an example of what not to do. It seems more like people fanning the flames in hope for a response

New Amazon Tablet Could Impact Mobile Shopping   New Amazon Tablet Could Impact Mobile Shopping

This user has validated their user name. by: SunflowerAntics
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Mon Sep 26 13:51:21 2011

hmmmmm....VERY interesting, I love my Kindle, NOW, if I set up a shop on Amazon, I would have the BEST of both worlds, could do my reading, buying AND Selling all on one device!  Thanks Amazon!  ♥

New Amazon Tablet Could Impact Mobile Shopping   New Amazon Tablet Could Impact Mobile Shopping

by: kevin

Mon Sep 26 22:35:54 2011

How long till ebay tries to copy this?  

New Amazon Tablet Could Impact Mobile Shopping   New Amazon Tablet Could Impact Mobile Shopping

by: Rich

Tue Sep 27 00:17:14 2011

Pundits can say whatever they want but pundits are wrong all the time.  As long as the high majority of mobile sales come from people under the age of 25 or maybe 30; the mobile market won't be a big deal.  The under 30 age bracket doesn't have much money, so why target them?  Most of the money is in the hands of the over 50 age bracket.  And I doubt many of them will use a cell phone to buy items on the internet.  

Amazon began crushing Ebay when Ebay doubled store fees in 2005.  And Amazon has never looked back. 75% of all Ebay items are in Ebay stores but the fee structure for Amazon stores is much cheaper so most Amazon prices are lower which makes Amazon more buyer friendly

New Amazon Tablet Could Impact Mobile Shopping   New Amazon Tablet Could Impact Mobile Shopping

by: Visa decline

Tue Sep 27 02:45:23 2011

I can use my iPad to buy off of amazon, buy books, buy apps, surf the web and buy wherever I want, check my email, play games, etc. More power to an Amazon tablet, but because I have an iPad, I don't need their tablet...or the kindle.

New Amazon Tablet Could Impact Mobile Shopping   New Amazon Tablet Could Impact Mobile Shopping

by: MatthewOgborne This user has validated their user name.
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Tue Sep 27 06:41:14 2011

@Al G

That's a good question and I was in the same camp until I was given an iPad.

I had toiled with buying an iPad for quite a while, bearing in mind, I have a hefty desktop (3 screens) and an HTC Desire droid, why on earth did I want a iPad?

Then I got one as a gift and the frank reality is that if it broke or was lost, I'd go buy another one instantly, without hesitation.

I use it, the kids use it and the wife uses it. Its rarely put down, one of us are using it.

Oh and for the Kindle, yes I have this on the desktop, smart phone and the iPad and yes, I'm waiting on the news today, to see if I get a  kindle or wait for the tablet to hit the UK.

Matt :)

New Amazon Tablet Could Impact Mobile Shopping   New Amazon Tablet Could Impact Mobile Shopping

by: MatthewOgborne This user has validated their user name.
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Tue Sep 27 07:00:00 2011

@Kevin

"How long till ebay tries to copy this?"

Ah you've overlooked the fundamental difference between eBay & Amazon. Ones solely a marketplace and the other is a merchant and a marketplace.

The moment eBay makes a (physical) product that is sold, then its crossed the line from marketplace to merchant.

Matt

New Amazon Tablet Could Impact Mobile Shopping   New Amazon Tablet Could Impact Mobile Shopping

by: Rich(y)

Tue Sep 27 07:52:16 2011

Sounds like another Andy Rooney piece is in the works. He opens his desk drawer: "Did you ever wonder where all these DEVICES came from? I know I do! Like this one for instance. It's for doing stuff on Amazon I think. Someone gave it to me for my 98th birthday a few years ago. Still in the box. My old manual typewriter's still good enough for me..."

New Amazon Tablet Could Impact Mobile Shopping   New Amazon Tablet Could Impact Mobile Shopping

by: Have

Tue Sep 27 08:57:59 2011

Will they try to optimize to shop on Amazon? Of course. If it has Internet access you can shop where you want. Duh...



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