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by mathattack 3147 days ago
Low prices, yes. But real estate and labor costs are lower in New Mexico than California. Perhaps taxes too. So they have different prices by region. (Otherwise they couldn't be profitable everywhere, and then they lose economies of scale) Not that different on pricing differences between countries.
2 comments

Right, but then why buy from walmart if the competitive price is gone (as shown in the original example of online vs retail price)? If it’s just a single region agnostic price plus some location sensitive fee, they’re just another branded ecommerce store beholden to their sellers and distribution for pricing determination. Amazon wins with price, quality, inventory, and selection.
> Amazon wins with price, quality, inventory, and selection.

Not always... I bought something on Amazon last week and the 3rd party seller drop shipped it from Sam's Club (wal-mart). I saw the packing slip, looked it up on samsclub.com and realized I had paid 20%/$4 more at Amazon than they paid at Sam's Club.

Amazon has a great price on a lot of things, which has taught us to think they have a great price on everything. Amazon also takes at least one day to get something to your house. If you need something immediately, that's where retail wins every time... it doesn't even matter what the price difference is.

Right, but we’re discussing walmart.com vs amazon.com because walmart.com doesn’t have the crazy low prices that the retail store does. You’re absolutely right you can easily undercut amazon at sam’s club, so (eg) why can’t walmart.com match that undercut?
So why don't they advertise the Walmart Price (tm) in small font, and then add a multiplier which takes all that into account?

Seems like a good way to influence consumer sentiment in places that won't play ball with you, if you're an abusive plutocratic organization.