Can WalMart survive Bitcoin?

[ronnieb]

So I finally had some time to do a little side by side shopping comparisons: Grocery stores vs Bitcoin.

I went to Walmart this morning and snapped 6 pics of items I purchase regularly. (I don't always shop at Walmart, but I have one close to my house so it was quick and easy... plus Walmart is cheap!! so I felt it was the best competitor to go up against Bitcoin.)

With Walmart pricing and size info on my desired products in hand, I jumped onto Amazon.com and built my wish list with exactly (almost) matching products. Some of the products on Amazon.com were way cheaper than Walmart, and some were more expensive... but you know where this is going. Once I uploaded my Amazon.com wish list to Purse.io Walmart pricing was eviscerated!!!!

Here is the play by play.

• Lysol Disinfecting Wipes Value Pack, Lemon and Lime Blossom, 240 Count: Amazon.com price (bundles of 3) $9.97 | Walmart equivalent Price $13.98 | Price after my Bitcoin Discount $4.98 --- Note: Walmart sold these individually @ $4.66 and Amazon.com sold this as a 3 pack. That was perfect for me because I always get a few.
  Downy Ultra Infusions Lavender Serenity Sheet Fabric Softener 105 Count: Amazon.com price $7.07 | Walmart Price $5.48 | Price after my Bitcoin Discount $3.53
  Pop-Secret Homestyle Popcorn, 19.2 ounce : Amazon.com price $2.73 | Walmart Price $3.68 | Price after my Bitcoin Discount $1.37
  Oral-B Glide 3d White Floss Picks Radiant Mint, 75 Count : Amazon.com price $2.99 | Walmart Price $3.47 | Price after my Bitcoin Discount $1.49
  Finish Powerball Tabs Dishwasher Detergent Tablets, Fresh Scent, 90 Count: Amazon.com price $14.54 | Walmart Price $12.93 | Price after my Bitcoin Discount $7.27
  Gillette Mach3 Base Cartridges 15 Count : Amazon.com price $29.37 | Walmart Price $32.97 | Price after my Bitcoin Discount $14.68

Walmart Grand Total (pre-tax) $72.51
Amazon Grand Total $66.67
Bitcoin Equivelant USD $42.93

Some things to think about. Amazon.com is really only at the beginning stages of becoming a true grocery store (in the Walmart sense of the word). As Amazon.com beefs up it's inventories and gets bigger and bigger discounts from manufactures I just don't see how Walmart can compete. The Walmart overhead/infrastructure is a giant anchor that will keep them tethered to the legacy model.

This battle (which shoppers might not be aware is occurring) will be an epic win for consumers that's for sure. The irony is that the battle is hedged in favor of Amazon.com through no effort of their own. Bitcoin has accidentally sided with Amazon.com and this will be one of the first GRAND examples of how Bitcoin enhances the efficacy of exchange. This is just the first of many demonstrations where Bitcoin will “cut the fat out” so to speak, cleaning and tightening business up in ways we haven't dreamt up yet!!

FAQ:

Q) -What about shipping cost?
Free Shipping
Q) -Where there fees?
Yes, Purse.io charged me $9.59 about 15% of the Amazon.com total. Very steep fees. But as you can see still more than worth it!!!!

EDIT: Product was received on December 24, 2015. Two weeks after I placed the order on Purse.io. Purse sent me a couple emails suggesting I change the discount to speed up the process. I left it alone at 50% off.

If you can budget and make the delay work... man this is a great way to save some money!!!

[Mike Cautillo]

Great work on the post. How was the overall experience with the ease of paying with the Bitcoin?? Did this happen through Purse or direct with Amazon??

Thanks.

[arnoudk]

I really like your analysis. It is a fantastic real world example of how bitcoin can save money. It is not just the high tech gadgets but the mundane everyday shopping that provides most cumulative benefits.

I wonder: You selected quite a steep discount. Did the order get fulfilled at Purse?

Unfortunately I don't think that this is scalable enough to really compete with wallmart as purse depends on people wishing to liquidate gift cards. If just one wallmart would lose all its customers to bitcoin then demand and supply would ensure that discounts go down. Although I am sure purse can still scale significantly.

That being said I would think that everyone on this forum (that lives in the USA) will want to shop in this way If you can get your paycheck in bitcoin (or have access to a bitcoin exchange all set up) it seems silly to knowingly pay too much for your shopping.

I wish there was a good way for me to use purse. I can order items and have them delivered to a freight forwarder. But I cannot check the goods nor do I get an update when something has arrived. So the check if something is as advertised is delayed by at least one month! Purse requires a check upon delivery. I'll trust amazon to deliver but not a random purse merchant. So for now I am stuck with Gyft

[CryptAxe]

Damn that's impressive, have you had any issues with fraudulent users on purse? I've been thinking about trying it next time I have some extra bitcoin

[ronnieb]

Great work on the post. How was the overall experience with the ease of paying with the Bitcoin?? Did this happen through Purse or direct with Amazon??

Thanks.

This was a piece of cake. So Purse.io is an Escrow/Intermediary that marries bitcoin Haves with bitcoin Havenots. The Havenots usually have Amazon.com credits they can't or won't use. So basically you upload your amazon wish list and Havenots basically bid for the order. Once you get your merchandise you release the bitcoin from escrow. It's really quite remarkable.

Only thing I will say is... if you take 20% off... you get your stuff ASAP. Usually I see 20% -25% off ship that day. Whenever I take 50% off, it takes a few days to a week or so to fill. That's because the Havenots go for the best deals first.

If you sit down and learn these new rails... you will start to see how the future of commerce will look... Nothing like it does today!!!

FYI Purse.io is funded very well. Worth a look.

[ronnieb]

I really like your analysis. It is a fantastic real world example of how bitcoin can save money. It is not just the high tech gadgets but the mundane everyday shopping that provides most cumulative benefits.

Thanks... the world of commerce is about to be turned upside down. there are some amazing stock plays to be made betting against legacy.

I wonder: You selected quite a steep discount. Did the order get fulfilled at Purse?

Agreed. These were items I can wait on and don't need them immediately. I buy on purse just about every week now. I have done every discount there is. The order hasn't filled yet... but in the past when I have had 50% off orders that didn't fill, I just re-submitted and they filled.

I have had 50% off orders fill that day, and I have had them not fill for 2 weeks. I usually choose 20% off, but wanted to show our local Bitcoin Group this dramatic example. Even had I taken 20% off, it's still too good to be true... but it is.

Here is one I did for whey protein a while ago... look at the numbers on this one!!!

https://www.reddit.com/r/Fitness/commen ... whey_gold/

Unfortunately I don't think that this is scalable enough to really compete with wallmart as purse depends on people wishing to liquidate gift cards. If just one Walmart would lose all its customers to bitcoin then demand and supply would ensure that discounts go down. Although I am sure purse can still scale significantly.

I agree that the scalability seems limited, but Amazon SEC filings show 2 Billion in in Amazon credits and gaining 300 million per year so it's more than enough scalable for a while. But even that said... Purse.io is already heading into the market place with many other deals being deployed so future scalability won't rely on current status quo.

https://www.reddit.com/r/Bitcoin/commen ... rs/cw2nxpe

I wish there was a good way for me to use purse. I can order items and have them delivered to a freight forwarder. But I cannot check the goods nor do I get an update when something has arrived. So the check if something is as advertised is delayed by at least one month! Purse requires a check upon delivery. I'll trust amazon to deliver but not a random purse merchant. So for now I am stuck with Gyft

So far I have had only one order arrive that need to be returned... And that was BRUTAL!!! (computer stuff). But I got it fixed, and it wasn't purse.io's fault nor amazon.com's... it was the vendor on Amazon.com. Their policies were not friendly and their morality was in the toilet!!

We should do a Purse.io bitcoin purchase freight forwarded to you Post next... let me know your thoughts.

[Mike Cautillo]

Awesome.....just to be clear, you already need to have a wallet in place to use Purse, correct??

[ronnieb]

Awesome.....just to be clear, you already need to have a wallet in place to use Purse, correct??

Well... actually purse.io is a custodial wallet and escrow. And they are linked with Coinbase (and I think one other bitcoin exchange) so you could just go to Purse.io and buy bitcoin (I think that's how it works) to fill your Purse.io Wallet and then you are good. I haven't done it like that as I have been in Bitcoin for a while and have a lot of different wallets.

[roy]

Great post. I would vote as one of the best here. Real-world use of bitcoin.

Bitcoin increases in value and make you spend much less on goods.

[arnoudk]

OK, I am tempted to try Purse again. I have ordered one thing from Purse as a test in the past, but it was too much hassle for the savings when compared to Gyft. I won't go into all the details here. But it was at a time when you could not select a very high discount rate as a new user, and for less than a dollar discount I spent a few hours dealing with that order. Then again, it may just have been a bad experience and it may make more sense for large ticket items At least I did get what I ordered!

For the Purse experts here, can you give some feedback on the following:

Purse automatically selects one of the vendors for an item, out of all possible vendors. This is not necessarily the cheapest vendor. When ordering at Amazon, I look at the total price just before the last confirmation step, so I take shipping, taxes and item price into consideration. When Purse selects the "wrong" vendor, it can be more expensive - even after discount. So I have to check on an item by item basis to ensure that it is really cheaper. This has in fact stopped me multiple times from completing a purse order and going back to Amazon and Gyft. If it is the same price (or more expensive!) I'd rather buy it using bitcoin and Gyft because that gives me more control. Is there an easy way to check this? (I also often buy Warehouse deals, or used items, and I don't think Gyft works there... but that distinction is very easy to make).

Amazon often has extra discounts (coupon codes mentioned on the page when combining items) - does Purse handle those?

Is it advisable to split a large amazon order in multiple smaller purse orders, or should I have one large order? I guess it makes most sense for me to split it into multiple orders at a specific price point where purse 'bitcoin buyers' are most active. What is the most optimal purse order value when going for maximum savings (50%)?

I can have Amazon ship to a freight forwarder service, who will ship it to me. There is a huge delay in delivery at their warehouse and delivery here locally (usually 1, sometimes even 2 months extra depending on whether it just missed a shipment). So I have no way to know if the item has been delivered (I don't get notifications of this - although I can ask but phoning them every day for confirmation would be annoying), and I have no way to know if the item is as described. How do I release escrow funds in this scenario (can I?)

[ronnieb]

Great post. I would vote as one of the best here. Real-world use of bitcoin.

Bitcoin increases in value and make you spend much less on goods.

Yeah, agreed. I mean I understand HODL, but it's hard to HODL when you can double the value of your money by buying bitcoin to use on Amazon... not too mention the soon to be FoldApp stores like Target, Home Depot, Walmart etc!!!

Very exciting times. This feels like my Martin Luther Kind moment.... "I have a dream!"

[ronnieb]

OK, I am tempted to try Purse again. I have ordered one thing from Purse as a test in the past, but it was too much hassle for the savings when compared to Gyft. I won't go into all the details here. But it was at a time when you could not select a very high discount rate as a new user, a

yeah, this is one of the frustrating things about purse.io… New members don't get a killer discount (not that I take the full discount every time… I only do it for my posts really, and special occasions).

Purse automatically selects one of the vendors for an item, out of all possible vendors. This is not necessarily the cheapest vendor. When ordering at Amazon, I look at the total price just before the last confirmation step, so I take shipping, taxes and item price into consideration. When Purse selects the "wrong" vendor, it can be more expensive - even after discount. So I have to check on an item by item basis to ensure that it is really cheaper.

Agreed… I usually only pick items that are foolproof going into the cart. I won't use an item that goes into multiple options. But this is kinda a problem with Amazon.com. Another problem is that pricing can change on Amazon. All in all there are some issues but I can see it being very smooth in a year (if it's still an option)

Amazon often has extra discounts (coupon codes mentioned on the page when combining items) - does Purse handle those?

I believe any extra perks go to the purchaser.

Is it advisable to split a large amazon order in multiple smaller purse orders, or should I have one large order? I guess it makes most sense for me to split it into multiple orders at a specific price point where purse 'bitcoin buyers' are most active. What is the most optimal purse order value when going for maximum savings (50%)?

I have't figured this one out yet. When I go to amazon, if an item gets free shipping I will order the item by itself. I feel like large value purchases, whether many items or one expensive item, have been slow… but things around $30 USD ship the same day even when I take 20% - 25% off. It's amazing how fast it is in that percentage range. Now if you take a $35 wish list and request 50%… it will take some time before it fills. I have had 50% off fill the same day, but only once or twice!!!

I can have Amazon ship to a freight forwarder service, who will ship it to me. There is a huge delay in delivery at their warehouse and delivery here locally (usually 1, sometimes even 2 months extra depending on whether it just missed a shipment). So I have no way to know if the item has been delivered (I don't get notifications of this - although I can ask but phoning them every day for confirmation would be annoying), and I have no way to know if the item is as described. How do I release escrow funds in this scenario (can I?)

Oh that is brutal??? Man, and the person who buys for you is going to be really upset that the funds are locked up for that long too!!!!!

Have one of your Bitcoin Family do the forwarding for you. Find someone in one of the Port cities and send it to them and when they get it they can forward it although I think this just killed the cost savings??? I guess maybe if you know someone US military that could receive it for you at an APO or APE address… then it might be quite cheap.

I hope purse.io and bring this option to everywhere that Amazon services. Would be nice for everyone to get the chance to use it as it was intended.

[arnoudk]

I can have Amazon ship to a freight forwarder service, who will ship it to me. There is a huge delay in delivery at their warehouse and delivery here locally (usually 1, sometimes even 2 months extra depending on whether it just missed a shipment). So I have no way to know if the item has been delivered (I don't get notifications of this - although I can ask but phoning them every day for confirmation would be annoying), and I have no way to know if the item is as described. How do I release escrow funds in this scenario (can I?)

Oh that is brutal??? Man, and the person who buys for you is going to be really upset that the funds are locked up for that long too!!!!!

Brutal? Yes, from a USA perspective waiting for 1 to 2 months for your order is insane. From a local perspective here, being able to order on Amazon and having that incredible choice and price level is worth it for me - even when adding on additional shipping costs and import taxes.

As for purchasing via Purse: no, obviously I cannot ask someone to wait a few months before releasing their funds. But I will visit the office of the guys that run the freight forwarding business when I am in their area next - and discuss if they can't inform me. They need to open all packages anyway - not because they really want to but because they need to create a shipping manifest (and they can't be shipping items that are illegal).

I am toying with the idea of starting an "Amazon Belize" service - where people place orders (and pay full Amazon price in bitcoin - and maybe even paypal), and the service then purchases the items on Amazon using Purse, and freight forwards it to Belize. Basically this would open up Amazon to this part of the world - for the price as advertised on Amazon - and shipping and taxes are paid for by the Purse discount. I don't know if it would work, but it is a great thought experiment nonetheless!

This is actually quite an exciting proposition here. Belize is a tiny country, and not at all wealthy. Imported things are expensive (and often old and outdated too - I can still by a 10 Mbps hub at a IT shop, new in box and wrapped in plastic, "selling" for a price that would buy me a 1 Gbps switch). It is the same with many (but not all!) items, too expensive, stored too long, and very limited choice.

But many people do not have an option. Most people here do not have a bank account, and credit cards are even more rare. How are they going to make international payments to pay Amazon?

[ronnieb]

Damn that's impressive, have you had any issues with fraudulent users on purse? I've been thinking about trying it next time I have some extra bitcoin

So far every single transaction I have done on Purse.io has been amazing... Knock on wood. It's literally too good to be true. That's why I keep shouting about it.

[ronnieb]

I am toying with the idea of starting an "Amazon Belize" service - where people place orders (and pay full Amazon price in bitcoin - and maybe even paypal), and the service then purchases the items on Amazon using Purse, and freight forwards it to Belize. Basically this would open up Amazon to this part of the world - for the price as advertised on Amazon - and shipping and taxes are paid for by the Purse discount. I don't know if it would work, but it is a great thought experiment nonetheless!

OMG... that might be an amazing little niche... probably lots of tiny variables to fuss with... but sounds very interesting. Let me know if you decide to move forward and if you want any help. I have my hands full up here in Idaho but would like to at least run some numbers.

[ronnieb]

Just giving and update.

Product arrived today exactly two weeks after I placed the order. So 50% off the Amazon price, takes a little longer and Purse.io sent me a couple emails suggesting I change the discount to "speed" it up.

I gotta say, if you can plan a little... This is a great way to do some of your grocery shopping. The amount saved vs shopping at walmart was huge.

[LiteCoinGuy]

a 50% discount is very nice

[ronnieb]

a 50% discount is very nice

Literally too good to be true. I only take 50% off for these types of post. Normally I take 20% off and it's lightening fast!!

[arnoudk]

Out of curiosity - did you get (or can you get) track and trace details for shipments? I'm still curious to try again and would like to know when I should call the freight forwarder for confirmation. I obviously cannot call them every day

[ronnieb]

Out of curiosity - did you get (or can you get) track and trace details for shipments? I'm still curious to try again and would like to know when I should call the freight forwarder for confirmation. I obviously cannot call them every day

Purse has made several improvements since I started using them, and one recent addition is tracking information. So yes, you can view full tracking info. It's very nice. Also if you know there will be a shipping charge from Amazon, you can add that fee separately. Purse is really making some great improvements.

[arnoudk]

Out of curiosity - did you get (or can you get) track and trace details for shipments? I'm still curious to try again and would like to know when I should call the freight forwarder for confirmation. I obviously cannot call them every day

Purse has made several improvements since I started using them, and one recent addition is tracking information. So yes, you can view full tracking info. It's very nice. Also if you know there will be a shipping charge from Amazon, you can add that fee separately. Purse is really making some great improvements.

This is perfect, as this means that it may now be possible for me to use purse! I'm going to try it out again. It will be a long and drawn out process (before I have the items) but at least I can confirm funds based on freight forwarder receipt confirmation!

One more question if I may. Does the shipment come with a packing slip that shows the ordered item with I'D etc? (Sorry for all the handholding requests, hope you don't mind me figuring out how to make this work for me efficiently )

[ronnieb]

One more question if I may. Does the shipment come with a packing slip that shows the ordered item with I'D etc? (Sorry for all the handholding requests, hope you don't mind me figuring out how to make this work for me efficiently )

The orders all come with "gift receipts" & a "return or replace" receipt which I assume link the order to ID on amazon servers. So you and I won't see the ID of the buyer, but Amazon would know the ID. But more than enough info is included with your order to remedy any issues.

Man, this post is getting to be quite informative. I should think Purse should throw us some sponsorship money!!

[ronnieb]

Another update.

So I went to Winco (Pacific Northwest Grocery Store) and saw that they had Top Ramen cheaper than I was able to buy with Bitcoin... so I messed up, could have gotten the Ramen at Winco for less, but overall my savings were HUGE!!!!

But you can still see a KILLER SAVINGS on the Mac and Cheese.

Walmart Price on Mac & Cheese (Kraft Brand Name) $0.99
Amazon Price on Mac & Cheese (Kraft Brand Name) $0.98
Bitcoin Price on Mac & Cheese (Kraft Brand Name) $0.49

FYI, two of my favorite staples!!!

[JohnSoby]

WoW

This is amazing!
I did not know and did not expect that the price would be so much cheaper.

Next shopping on WalMart, I will check this for my self.
If this is true and I don't doubt that it is, I will not buy any longer at my local WalMart.

Probably WalMart will get a lot of problems, if they not already have them.
Sure still people will go there for food and other thinks the need instantly.

But they will for sure loose a lot of customer in the near future to the internet and to BitCoin.

Anyway I will not cry one tear if they won't survive that.

[edin]

ideally bitcoin is possible for the future

[jeobox]

Big companies always adapt. If Bitcoin becomes the defacto currency, they will find a way to implement it.