Economy

Amazon Discounts Other Sellers' Products

Amazon Discounts Other Sellers' Products”

The move sees Amazon effectively price matching the likes of Walmart and other retailers, without requiring merchants to take a hit on their own profits.

The problem most third party sellers will face is after the Christmas season when Amazon remove their "discount offer" and the prices are raised to normal retail price that sales will slow.

These new discounts will be provided by the company itself and apply to a wide range of products from board games to tech gadgets not sold directly by the e-commerce site. She added that sellers have also the option to opt out.

Discounts appear to be limited to sellers that make use of Amazon's fulfillment service, but sellers have not been notified about the application of price cuts.

Selling the products at a lower price may seem to be good news for Amazon's customers, but it could also mean bad news for Amazon's relationship with prominent brands, manufacturers, and its sellers.

And this will be the concern for third party sellers affected by the offer.

The Wall Street Journal reports that not all Amazon third-party sellers are happy with this latest development, noting that lower prices could prove particularly damaging to independent merchants that also sell the same products elsewhere online.

In addition, some merchants have once expressed their disapproval of the move, saying that discounting has resulted to their products getting devalued.

"When Amazon provides a discount, customers get the products they want a ta price they'll love, and small businesses receive increased sales at their listed asking price".



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