If an item is too expensive, chances are that nobody is going to buy it or it will sell less in quantity. To boost sales, Amazon, in USA, is now actually reducing prices of items by themselves even if the dealer/seller does not want to give a discount! Some see this as a controversial move.
Is this discount wave also going to other countries?
We have to wait to see how far Amazon can go with this new policy.
In United States, Amazon is currently lowering many third-party item prices that are being sold by sellers who primarily use Amazon to sell their merchandise. With an addition called “Discount provided by Amazon,” the shipping giant is changing prices where they feel they are too high. Because Amazon itself lowers the price, retailers still get the full price. Nevertheless, there are some consignors who do not like this procedure.
Traders worry about their reputation
Amazon is fully convinced of this new concept. A spokeswoman told CNBC’s business and financial broadcaster that this rebate would boost sales of smaller vendors and give customers the price they want. However, some traders regard this patronizing of their prices as a devaluation of goods. Because Amazon signals that these are worth less than what originally was set by the dealer. It is questionable, however, who the loser is in the end. Many sellers are finding their customers only through Amazon and are dependent on the enormous traffic that comes to Amazon, so they don’t have much say in this regard.