One of the busiest weekends for shopping during the Christmas season is the weekend of December 9th – 11th. Amazon (NASDAQ:AMZN) has launched a promotion that provided discounts to shoppers that used the Amazon Price Check app to look up prices in any retail store they’re shopping.
Brick and Mortar stores are furious with the new promotion and say that the underhanded techniques go further than just encroaching on their turf in their stores. By Amazon providing up to a $15 discount on three items, or 5% discounts for using them app on each item consumers are shopping for Amazon is revealing another advantage.
What is the other hidden advantage? The American Retail Industry Leaders Association was intervieed at The Telegraph and said, “Retailers compete on price 365 days a year, and at no time is that competition hotter than during the make-or-break holiday shopping season. However, by continuing to evade collecting state sales taxes, Amazon’s exploitation of a pre-Internet tax loophole is resulting in a 6-10 per cent perceived price advantage over their competitors on Main Street.”
So while Christmas deal shoppers are getting a 5% discount they’re also getting free tax if they live in a location where Amazon hasn’t been forced to charge sales tax. Wal-Mart (NYSE:WMT) hasn’t been making much of a fuss over this situation and has been fighting fire with fire by creating their own price comparison app for smart phones like Android & iPhones. Amazon has limited is Price Checker App’s promotional period so it really seems they are just trying to make consumers aware of the technology they could be using this year.