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iPad Officially the #1 Selling Tablet Now at Amazon, Despite Premium Third-Party Price

Updating a post yesterday, as of this morning Apple’s iPad is now officially the #1 selling tablet in the Amazon Store, and that’s without Amazon having any warehoused copies of its own to sell. The obligatory screenshot, of course, is above. Both the 16GB wifi iPad and the 64GB wifi iPad are now in the top 25 among Amazon’s “Bestsellers in Computers and Accessories,” but the 32GB model is lagging behind due largely to a perhaps felicitous typo in in its listing. The prices of these third-party Amazon Marketplace listings are settling a bit, but we’re still talking about a premium of a hundred bucks or so over the prices charges in the Apple Store and at some big box retailers.

Could the iPad Already Be the Bestselling Tablet Among Hundreds in Amazon’s Own Store?

Links to order an iPad through Amazon:

Related post: The Partnership Continues: Apple iPad Now Available from Third-Party Sellers on Amazon

By Stephen Windwalker

How great is the loyalty of Amazon customers? Apparently in some cases, it’s enough to justify paying $100 for a rather popular recently released product from a company that’s also reputed to get pretty high marks when it comes to customer loyalty.

When I posted yesterday about the iPad turning up on Amazon, I was a bit skeptical about how many prospective iPad buyers would take such a circuitous and more expensive route to acquisition:

at least for now it’s no “Big Deal.” The lowest third-party price for the base 16GB wifi model, as I post this note, is about $125 higher than the price at which the same model is available in the Apple Store. Even if you add in $6.49 for shipping and subtract sales tax in a back of the envelope comparison with the price you would pay directly to Apple, you would still be out a hundred bucks or so. Nearly all of the third-party sellers offering iPads at prices between $600 and $1,000 are low-volume or “just launched” sellers, and they may be hoping for some arbitrage profit if Apple happens to run out of iPads.

But the effect of the Apple Store’ current delay of “5 to 7 business days” in shipping the iPad is already generating income for Amazon and its third-party sellers. As of this morning, Amazon’s bestseller list for tablet computers shows the iPad ranked #2 and #3 among hundreds of worthy competitors. One explanation I hadn’t factored in yesterday is the possibility that many Amazon customers not only have easy 1-click payment processes set up there but also maintain gift card balances, gift registries, and similar assets with Amazon. In any case, if you take the two models combined it is entirely possible that the iPad is already Amazon’s topselling tablet:

I’m still scratching my head, and it’s tough to say how many sales it might take to generate such a lofty perch, but if Amazon and Apple have yet to finalize arrangements for Amazon to sell the iPad directly on the main Amazon website, this might begin to get their attention. Meanwhile, Amazon’s share of the profit for each iPad sold by a third-party Amazon Marketplace seller is 15%, minus any affiliate fees or commissions.

That’s going to average at least $100 a pop at the prices now listed, which is nothing to sneeze at when you consider that Amazon incurs now warehousing or fulfillment costs for these transactions and, in all likelihood, will also be selling beaucoup Kindle books through the Kindle for iPad App to these Amazon-loyal iPad buyers.

So, I’m just asking here: what’s not to like about Jeff Bezos’ business model?

Meanwhile, as noted yesterday, the Amazon Store may already be the best place to shop for iPad accessories like these:

Targus Hughes Leather Portfolio Slipcase Designed for 9.7 Inch Apple iPad TES00701US (Brown) (left, $59.99)

Apple Wireless Keyboard – $69 – I’ve been using one with the iPad for a couple of days and loving it

13-Item Accessories Bundle for Apple iPad Tablet Wifi / 3G skin case, sleeve, earphone, screen protector, crystal case, FM transmitter, speaker, cable + more

 

 Be.ez 100884 LA robe Allure Sleeve for New iPad (Red Kiss) (left, $29.99)


Apple iPad Car Charger (White)

Scratch Defense Neoprene Sleeve for the Apple iPad

Belkin F8N277tt Pleated Sleeve for iPad – Black

Marware Sport Grip Pro for iPad Black/Black (left, $34.99)

Macally MSUITPAD Silicon Protective Case for iPad

Shade Anti-glare Film for iPad

Hard Candy Cases Sleek Skin for Apple iPad – Orange

Marware Eco-Vue for iPad

The Partnership Continues: Apple iPad Now Available from Third-Party Sellers on Amazon

We’ll say it again: far more than they are competitors, the real bottom line is that Amazon and Apple are partners. We’ve already discussed the primary ways in which Amazon will make millions (and eventually billions) via the iPad, and here are some more.

Third-party sellers are now selling Apple’s new iPad on Amazon’s website, but at least for now it’s no “Big Deal.” The lowest third-party price for the base 16GB wifi model, as I post this note, is about $125 higher than the price at which the same model is available in the Apple Store. Even if you add in $6.49 for shipping and subtract sales tax in a back of the envelope comparison with the price you would pay directly to Apple, you would still be out a hundred bucks or so. Nearly all of the third-party sellers offering iPads at prices between $600 and $1,000 are low-volume or “just launched” sellers, and they may be hoping for some arbitrage profit if Apple happens to run out of iPads.

However, I’ll be watching closely to see if Amazon itself becomes an iPad seller, which I do expect to happen soon. Amazon has been very successful at selling the various iPod Touch models, usually at prices slightly lower than those available from Apple. Even if an Amazon offering of the iPad were to be priced at par with the Apple Store’s offering, the combination of a sales tax differential and Amazon’s no-hassle 30-day return policy could make it a better deal for many prospective buyers.

Meanwhile, the Amazon Store may already be the best place to shop for iPad accessories like these:


Targus Hughes Leather Portfolio Slipcase Designed for 9.7 Inch Apple iPad TES00701US (Brown) (left, $59.99)

Apple Wireless Keyboard – $69 – I’ve been using one with the iPad for a couple of days and loving it

13-Item Accessories Bundle for Apple iPad Tablet Wifi / 3G skin case, sleeve, earphone, screen protector, crystal case, FM transmitter, speaker, cable + more

 

 Be.ez 100884 LA robe Allure Sleeve for New iPad (Red Kiss) (left, $29.99)


Apple iPad Car Charger (White)

Scratch Defense Neoprene Sleeve for the Apple iPad

Belkin F8N277tt Pleated Sleeve for iPad – Black

Marware Sport Grip Pro for iPad Black/Black (left, $34.99)

Macally MSUITPAD Silicon Protective Case for iPad

Shade Anti-glare Film for iPad

Hard Candy Cases Sleek Skin for Apple iPad – Orange

Marware Eco-Vue for iPad