Author Topic: Amazon Just Slashed Prices. Here's What Third-Party Vendors Need to Know  (Read 115 times)

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Southern Jewel's Fab Finds

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Amazon Just Slashed Prices. Here's What Third-Party Vendors Need to Know

Heard this yesterday on the news, meant to post earlier.
Sorry!


Amazon is forcing discounts on its third-party sellers. Hmmmmmm.
You'll need to click the link to read the entire piece....

"At first glance, we thought it was great," he said of the discount, which is being called Discount Provided by Amazon. But at a closer look, he realized it would mean "violating our seller agreement with every other marketplace that we sell on."

Amazon is trying to keep prices competitive with Wal-Mart and Dollar General, WSJ reports, especially as the holiday shopping season starts. Amazon is using the discounts on items sold by third-party vendors to match the prices offered by other retailers. Amazon covers the difference between its price discount and the normal price listed by independent vendors, which means vendors don't feel the discount. But, the price cut still could result in thousands of third-party vendors violating the minimum advertised price policies they signed with product manufacturers and brands, as well as pricing agreements they sign with other online marketplaces.



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Re: Amazon Just Slashed Prices. Here's What Third-Party Vendors Need to Know
« Reply #1 on: November 07, 2017, 04:36:19 PM »
Yahoo Finance Article
Amazon adds its own discounts to third-party seller products

From the article:
For the first time, Amazon is cutting the prices of third-party seller items at its own expense to be more competitive with other online sites, a move first spotted by the WSJ. Such items are labelled as "Discount provided by Amazon," marking a new policy that even many of the retailers aren't aware of. "I do not know if this is new or if I just never noticed it before," wrote reseller Rock Creek Gifts on Amazon's seller forum. The discounts are less than 10 percent, and appear to only be applied for sellers that use Amazon's fulfillment service.

Amazon rolled out the discounts just in time for the holidays in an apparent effort to be competitive with rivals like Wal-Mart on goods it doesn't directly sell itself. "This item is sold by a third-party seller. The discount is provided by Amazon," the offer states. "This is a limited time discount."

Sellers have noted that the discount does not impact what they are paid on products, so Amazon is eating the entire reduction itself. "We actually have a couple of products where Amazon is doing just that and it's great," notes one seller. "One example is a product price at $78.50 [discounted to $74.90]. We still get the full proceeds from $78.50 sale less the fees."

  

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