Discounts could be applied to Amazon 3P sellers’ prices

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It looks like Amazon 3P (third party) sellers on the marketplace could see Amazon taking the lead on pricing and offering your goods at a discount to attract buyers.

It’s not totally clear how this would work but the gist of it seems that Amazon will offer your goods at a discount to buyers, to make them especially attractive, but that Amazon will cover the difference for your stated price.

Sellers will apparently be able to opt out.

Amazon has said: “When Amazon provides a discount, customers get the products they want at a price they’ll love, and small businesses receive increased sales at their listed asking price.”

It’s understood that the discounts are being applied to goods in verticals where there is stiff competition from other retailers, such as Wal-mart, especially on things like board games and tech items.

This is quite a big deal and one where more details and information are required to make full proper judgements. But it’s not unfair to think that many sellers will be very reluctant to allow Amazon to meddle with their prices, even if does mean more sales. For starters, a discount on Amazoncould mean the price of goods sold elsewhere online will be diminished.

There’s also a simple question of control: it’s a sellers right to choose and determine prices. But for Amazon that’s really the point. They consider themselves to be in competition with an array of retailers who are in a position to deep discount and win the attention of buyers, perhaps even with loss leaders.

As it stands, as far as we know, this is only a practice that will be happening in the USA on Amazon.com but we’d be interested to know if you’re affected. Do you think Amazon should be allowed to discount your products?

2 Responses

  1. If it brings us more sales on amazon then I see it as a good thing. Although would the tax and vat then be more complicated ?

  2. They already offer referral fee discounts as an incentive for sellers to lower prices on select items. When they do offer a lower referral fee seller participation is optional.

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