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Amazon Tests “Sold by Amazon” Pricing Program as Scrutiny Intensifies

Photo Credit: Zhao ! via Flickr cc

Last week Amazon launched a program that gives it pricing power over certain third-party products. The program comes at a time of increased criticism of Amazon’s pricing policies, which in some cases may prompt sellers to raise prices on other platforms, which in turn could draw the attention of antitrust regulators. Sold by Amazon gives Amazon the power to lower prices unilaterally, while still protecting third party sellers’ margins.

“Sellers choose which products to enroll in SBA, and once enrolled, these products are priced by Amazon,” the company wrote in an invitation to sellers seen by CNBC. “To ensure peace of mind, for each SBA product, Amazon will provide a Minimum Gross Proceed (MGP) amount to protect your margins.”

Read the full story at CNBC.