Wal-Mart is the world’s biggest retailer, but online, it’s still a relative piker. Now the company is trying to change that by opening up its Web store to other retailers–just as its biggest competitors already do. But no need for Amazon and eBay to start sweating just yet.
Amazon CEO Jeff Bezos didn’t make it to his company’s earnings call today, but he did find time to apologize for Kindlegate–Amazon’s ham-fisted removal of George Orwell novels from his customers’ e-book readers. Great, right? Almost.
Last week, Amazon acknowledged that it deleted some copies of “1984″ and “Animal Farm” from customers’ Kindles. So what book will be next?
Because while Amazon has said it won’t repeat what it did last week, it hasn’t actually sworn off remote book-removal–or remote-anything removal, for that matter–altogether. Does that worry you? It should.
Amazon has explained why it has been deleting some novels from its customers’ Kindles: It shouldn’t have been selling them in the first place.
Amazon says the copies of George Orwell’s “Animal Farm” and “1984″ that it removed, without warning, from some Kindles this week are “illegal”, because the publisher didn’t have the rights to sell them. Won’t happen again, the e-commerce giant says. Sort of.
Buy an e-book for Amazon’s Kindle recently? You might want to check to see if it’s still on your device. Kindle users are complaining that the e-commerce giant has removed titles from their machines this week and given them refunds in their place.
What happened? The details are fuzzy, but apparently, a publisher that supplied Amazon with two George Orwell titles has decided that it doesn’t want to sell them via Amazon anymore. So away they went. Have at it, DRM-haters.
Even as the rest of the retail world stumbled in the past year, Amazon kept cruising and increasing market share. So if a cratering economy can’t hurt the e-commerce giant, what could? Citigroup analyst Mark Mahaney throws out a suggestion: Movies, books and music–the same stuff that helped Amazon get the lead it enjoys today.
At some point, this will no longer be a coincidence: Once again, Amazon’s newest e-book reader has sold out shortly after launch. This time, it’s the Kindle DX, the super-sized reader with the super-sized price tag. Amazon started selling the DX three days ago, and by yesterday afternoon the e-commerce giant said it was cleaned out. The next batch won’t arrive until next week.
The music industry’s online forays have always inspired head-scratching, but this one is odd even by those standards: Project Playlist, the online music service currently being sued by Warner Music Group and Universal Music Group, is bolstering its tech staff by buying the assets of… a music service owned by Universal Music Group. But the lawsuits have yet to be resolved. Confusing? Of course.
Amazon won’t come out and say exactly what happened to it sales-ranking system over the past few days. But it is sorry, and it would like the Web and its customers to know that it wasn’t singling out books aimed at gays and lesbians.
Good news for Amazon, bad news for me: The online retail giant has created a version of its popular iPhone app for lowly Blackberry customers like myself. Jump ahead a bit and you can start to get a sense of how this might actually create a market for mobile advertising.
Here’s a tiny bit of sunshine, via ComScore CEO Gian Fulgoni: E-commerce sales were up two percent in February. That’s not much, but it’s better than the fourth quarter of last year, when e-commerce sales declined for the first time ever, dropping three percent. Best-case scenario? “We might well have bottomed out with consumer spending.”
Amazon’s data-free claim that it posted its “best ever” holiday season this month has gotten a deservedly skeptical reception. But here’s one vote in favor of Jeff Bezos’s e-commerce giant: A customer satisfaction poll that singles out just Amazon and Netflix for praise.
Retail was supposed to get hammered during the holiday season that just ended, and a new survey says that sales fell four percent. But Amazon says Christmas 2008 was its “best ever.” Just don’t ask Jeff Bezos and company to explain what that means.
ComScore, the Web analytics company which has been bringing us a weekly installment of grim news about Christmas sales since November, weighs in with its newest update. You may have heard this one before.
Yes, Cyber Monday sales were better than expected–up a not-terrible 15 percent. But Citigroup analyst Mark Mahaney has gone ahead and cut his estimates for the world’s leading e-commerce company anyway: He thinks Amazon’s sales will grow seven percent this quarter, down from his earlier estimate of 16 percent growth.
Peter Kafka has been covering media and technology since 1997, when he joined the staff of Forbes magazine. Most recently, he has been the managing editor of the tech and media Web site, Silicon Alley Insider. Read more »
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