Amazon Again Angers Main Street with Price Comparison Offer in Their Competitors' Own Stores

- by Michael Stillman

Amazon invites consumers to tell them what competitors are charging.

Rolling in to play the role of the white knight, sort of, was Amazon competitor eBay. Ebay, unlike Amazon, is on the wrong side of the Main Street Fairness Act as far as most local retailers are concerned, but also unlike Amazon, they maintain a certain amount of cooperation with Main Street sellers. Amazon strictly competes with them, but eBay offers electronic commerce services, such as managing inventory and websites, for bricks and mortar retailers. In 2011, eBay purchased GSI Commerce, a firm specializing in providing such services. The result is it now partners with many companies that might otherwise be considered competitors.

Ebay announced that it would be offering $10 discount coupons for customers making purchases from certain traditional retailers from December 16-19. This offer was filled with restrictions and limitations, hardly the kind of deal that is likely to lead many people to open their wallets to Main Street. It was more the principle of the offer – some small support for some traditional merchants. The offer was limited to three retailers – Toys R Us, Dick's Sporting Goods, and Aeropostale. All subscribe to services from GSI Commerce. The deal required purchasing $100 worth of merchandise from the merchant, and even then, the coupon could not be used until a next purchase. The initial purchase had to be made using eBay's Pay Pal charging service, and the coupon had to be used by the end of the December. Oh, and one more thing. The purchase had to be made at the bricks and mortar retailer's website. This is about as weak as an offer can get, but again, it was more the principle, the message that eBay was trying to support Main Street in response to Amazon's actions, that made it noteworthy.