Can Best Buy's New 'Marketplace' Poach Customers from Amazon?

Best BuyBest Buy (BBY) is taking its best shot at stealing some online market share from Amazon.com (AMZN) with a completely new service meant to challenge the world's largest e-commerce company. Best Buy Marketplace will substantially increase the number of products available at the Best Buy website.

In a statement, the company noted:
"Best Buy Marketplace is a key development to our multi-channel platform," stated Brian J. Dunn, chief executive officer of Best Buy. "As we continue to grow our online business, Best Buy Marketplace is an element that enables consumers to shop how they want and encourages additional reasons to visit and purchase at BestBuy.com."
Like Amazon.com, the new store will allow third parties, vetted by Best Buy, to sell their products alongside the retailer's.

Wall Street has lost its patience with Best Buy's plans to overhaul itself. In the last reported quarter, which ended May 28, the firm posted a sales increase of only 1% to $10.9 billion. EPS fell by 3% to 35¢. Online revenue rose only 10% in the U.S., not nearly enough to keep up with Amazon, which is still growing at over 50% per quarter.

Best Buy has problems similar to those of Barnes & Noble (BKS). It must maintain its huge bricks-and-mortar operation while simultaneously trying to flank Amazon online. But it doesn't have anywhere close to the variety of products Amazon does, nor anything close to its audience. Amazon.com was the sixth most visited website in the U.S. in July, according to comScore, with 97.1 million unique U.S. based visitors. Retailers Walmart (WMT) and Target (TGT) were among the 50 most visited sites. Best Buy didn't make the list.

Best Buy's shares plunged last December when the company issued a lukewarm forecast, and they haven't recovered since. After reaching a 52-week high of $45.33 nearly a year ago, they now trade below $25.








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johnny longfellow

The times I have been to best buy I have really enjoyed it they actually have put all 7 TVs up in my house and wired my whole surround sound in the living room.I can say I have looked around for a better price and they have helped me all the way with great pricing the way I see it is I rather actually go to a store where I can talk to someone face to face not over the phone or online chat that's where I see a clear advantage over amazon. For the best buy employee if you feel so horrible about working there and the treatment your getting then QUIT..Every great multi million dollar retail has a billion complaints because its hard to make everyone happy some ppl just crave the attention and make a seen and leave horrible reviews no matter how good there attention was...just today I was at best buy to pay my best buy credit card and while standing in line I an here this lady just going nuts on one of the geek squad employees over fixing her ipod she wouldn't even let him talk maybe if she wouldn't have been so ignorantly and jumped the gun she would have been helped out but I didnt blame him for basically telling her to go f her self.. My recommendation is treat others the way you want to be treated get the idea out of your heads that ppl that work at retail company's owe you anything because they dont ......

September 10 2011 at 1:36 AM Report abuse rate up rate down Reply
Jorge Mendina

im a best buy employee and i can honestly say that we are the worst of the worst ! there are still some great people working here but my advice to everyone ! stay way from people in ties and a suit ! those are the managers that push us to screw you guys over and well even though its my job i can say that i dont like it and sometimes my heart gets the best of me but we still have to make our money one way or another its not like if im nice to you people and dont get you to buy a bunch of things you dont need that your going to come and pay my bills so i have to do what i have to do and we dont get treated fairly alot of favoritism goes around and employees get thrown out like garbage when they are not needed anymore

September 09 2011 at 4:25 AM Report abuse rate up rate down Reply
drpmindmender

Amazon blows Best Buy out of the water.

September 09 2011 at 1:33 AM Report abuse rate up rate down Reply
roxanne

my last 2 in store experiences with Best buy were terrific......guess i got lucky with the oregon store.....i also shop with amazon. in the best buy store, i took my list to the person who stands in the front of the store at a little podium and asked her for some help......she smiled and waved a computer employee over......he got me a cart and proceeded to take me to every department i needed to go to ...he also explained the differences in phones, computers, time capsules, camera's, etc.......i thought i may have pissed him off when i ran the cart into his achilles tendons really hard, but he just smiled and said it happened all the time, and we moved on to computers. he was really nice and must have spent 90 minuets with me. when i was finished shopping he took me to the checkout and asked if i needed help getting things in my car........i still marvel about the whole experience.

September 08 2011 at 11:46 PM Report abuse rate up rate down Reply
mikadoo

Bloomington Normal Illinois Best Buy. Best lazey employes around. They do nothing in that store. I gave them 3 chances. 2 to many. I will never tell anyone to go to Best Buy.

September 08 2011 at 11:19 PM Report abuse rate up rate down Reply
mikadoo

Don't do it'

September 08 2011 at 11:12 PM Report abuse rate up rate down Reply
stef234237

Best Buy would always be my last choice

September 08 2011 at 10:44 PM Report abuse +1 rate up rate down Reply
borderdog78

Amazon Doesn't have a choice. He who controls the stocks controls the business. It's called a hostile tackover

September 08 2011 at 10:25 PM Report abuse rate up rate down Reply
lsawallish

Best Buy will never compete with Amazon. Years ago I spent thousands of dollars at Best Buy. Then a friend of mine bought me a CD player as a gift for Christmas. On January 3 I took the CD player back for an exchange and they said I couldn't because it was purchased on Nov 30th and the 30 day return policy had expired. There was no compromise. The package was unopened. I have not bought and will not buy from Best Buy ever again. These are really bad bad people.

September 08 2011 at 10:15 PM Report abuse +1 rate up rate down Reply
1 reply to lsawallish's comment
Jorge Mendina

compromise why because your to lazy to return it on time? lol its policies ! follow them

September 09 2011 at 4:14 AM Report abuse rate up rate down Reply
abqparral

Good Luck // Amazon has the best cutomer service around - And best buy has the crappiest.
Amazon will kill these guys !!

September 08 2011 at 10:09 PM Report abuse rate up rate down Reply