Amazon Deal 'Another Nail in the Coffin' for Local Stores

[Editor's note: A previous version of this story incorrectly stated that the deal applies to books, which is not the case. Changes have been made to the story accordingly.]

Over the last 45 years, owner Marshall Miller has seen a variety of things change the way he does business.

Computers. Chain stores. The Internet. Electronic books.

Each one has thrown a hefty curveball at the independent bookseller, although Miller said a promotion Amazon is running on Saturday is more "shabby" and "terrible" than anything he's ever seen.

On Saturday, Amazon will pay shoppers to enter a store and scan product barcodes with Amazon's smartphone app. Shoppers can scan up to three items and be paid up to $5 per item if they purchase the item through Amazon instead of the store they visited to get the barcode.

While the deal doesn't apply to books, as the app will pay out for electronics, toys, music, sporting goods and DVDs, something which Miller said will serve as "just another nail in the coffin" for independent and small businesses.

"It's always the deck is stacked against you," said Miller. "I just shake my head. In some ways its amazing I'm still around 45 years doing this with everything going against you.

"What underlines so much of what is wrong in this country is greed. That's what it's all about. It's the downfall of our society today."

Amazon has issued a press release about the deal, which has generated a fervor among small businesses across the country, according to the Christian Science Monitor:

"The ability to check prices on your mobile phone when you’re in a physical retail store is changing the way people shop," Sam Hall, director of Amazon Mobile, said in a press release. "Price transparency means that you can save money on the products you want and that’s a great thing for customers. Price Check in-store deals are another incentive to shop smart this holiday season."

Retail groups aren't pleased at the notion, though, especially individuals in states with a sales tax, as this deal allows Massachusetts and other non-Granite State shoppers to save even more, according to Time.

The Retail Industry Leaders Assn. said the app unfairly uses bricks-and-mortar stores as “showrooms to then purchase merchandise online from inside the store.”

“Central to this tactic is Amazon’s continued practice of using a pre-Internet loophole to avoid state sales tax collection, a move that gives them an unfair competitive advantage over Main Street retailers,” the group said.

Miller said he thought that local stores won't be able to match the savings this weekend, as he said big companies and chains like Amazon can sell goods at prices lower than independent retailers can even purchase those items for his store.

What he and other stores can do, though, is focus on the little things that make their shops popular with locals and hope that Amazon sends a commission of some kind to every store they "undercut" Saturday.

"The only thing I can do is always treat customers the way I always have — give them 'top notch' service and do the best I can," said Miller. "The price points are outrageous. There's nothing I can do about that.

"This is a situation I've never been faced with. It's pretty outrageous."