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Amazon iPhone app now supports barcode scanning for price comparison

Amazon just updated their Amazon Mobile app for iPhone to now include barcode scanning.  Basically, while you are out and about shopping, you can use your iPhone to scan the barcode of whatever you are thinking of buying …

Gear Live Andru Edwards

Context & Ripple Effects

Amazon has spent the past several weeks pushing outward from its own website: a placeholder-free read of the record shows the Kindle for Web beta arriving in late September 2010, Kindle Singles launching alongside this news in October, and multiple tips pointing to an Amazon app store for Android that remains unconfirmed. The barcode scanner in the Amazon Mobile app extends the same logic past Amazon's properties entirely — onto the iPhone, and into other retailers' stores.

The confirmed update does one thing: while standing in a store aisle, an iPhone owner can scan a product's barcode and compare that shelf price against Amazon's catalog on the spot.

First-order effects

  • iPhone users gain an instant price check inside any store carrying barcoded goods, moving the purchase decision from the checkout line to the phone screen.
  • Amazon turns every brick-and-mortar aisle into a live entry point to its own catalog, at essentially zero marginal cost per store entered.

Second-order effects

  • Physical retailers face their shelves functioning as free showrooms for Amazon inventory, forcing questions about price-matching policies and whether to resist or court in-store smartphone use.
  • Rival e-commerce players are pressured to ship comparable scanning clients of their own or cede the in-store comparison moment to Amazon's app by default.

Third-order effects

  • If scan-and-compare becomes a habit, ownership of the scan moment — and the catalog behind it — positions whichever company holds it between the shopper and every physical store, a structural shift toward mobile devices mediating offline retail.
  • Retailers who cannot compete on transparent price lose leverage over the final purchase decision even when the customer is standing in their building, accelerating pressure toward experience- or service-based differentiation.

The trend: Smartphones are collapsing the boundary between physical retail and e-commerce catalogs, making price comparison a default behavior in the store aisle.