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Amazon Pressures Sellers for the Lowest Prices, Prompting Some to Raise Prices Elsewhere

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Photo Credit: Robert Scoble via Flickr cc

It’s no secret that Amazon pushes for the best prices on its site. What is more troublesome is that its actions may prompt sellers to raise their prices on other platforms.

When Amazon discovers a better price offered by one of its sellers on a rival site, it alerts that seller and then makes the item more difficult to find on its own site, almost certainly causing the seller to lose sales. Clearly the incentive is to offer the best prices on Amazon.com, always. A report from Bloomberg notes that Amazon does not ask sellers to increase prices on other retailers’ sites, and that the goal may be to encourage sellers to lower prices on Amazon’s platform. But some sellers say that they are more likely to raise prices on sites such as Walmart.com rather than lose sales on Amazon.com.

In an emailed statement, an Amazon spokesperson said: “Sellers have full control of their own prices both on and off Amazon, and we help them maximize their sales in our store by providing them insights on how to be the featured offer.” Walmart declined to comment.

Read the full story at Bloomberg.