Amazon Showrooming

Target stores have announced that they will no longer sell Amazon Kindle eReaders. Target has been the largest brick-and-mortar seller of Kindles but they have been upset with Amazon for some time. The big problem is something called Showrooming.

Amazon encourage buyers to go to their local stores and check out a product in person. This gives potential buyers a chance to actually hold a product and see if it’s what they want. This is where Target comes in. People go to Target, play with the Kindle and, if they decide to buy it, leave the store and buy the product online.

I actually use Amazon.com for a lot of purchases so I can verify that they have lower prices than local retailers. There’s no way a local store can compete on price with a major eTailer. I buy things like lens hoods, lens caps and other photo products because Amazon.com has an enourmus selection and unbeatable prices, often with free shipping and no sales tax.

Target has a real complaint and I’m glad they’re doing something about it. The serious drop in Kindle sales in Q1-12 may give Amazon second thoughts about their sales plan. Sales of Kindles dropped from 17% of the tablet market in Q4-11 to just 4% last quarter. Maybe Amazon should be helping Target make more sales and not try to undercut them.