Skip to main content

Amazon is beginning to discount items listed by third-party sellers

If you’re taking to Amazon to take care of all your holiday shopping needs, you may be greeted by a welcome surprise. The online retailer has begun lowering prices by up to 9 percent on products listed by third-party sellers. This marks the first time the Seattle-based ecommerce giant has manipulated prices of independent retailer goods, and certainly heralds the company’s continued attempts to compete more directly with brick and mortar stores.

While sellers might otherwise be concerned about their margins as a result of these discounts, Amazon is said to be eating the cost difference itself. That means that when you see a new “Discount provided by Amazon” tag, you’ll know that your percent off is all thanks to the digital giant. And already, these price differences have begun to result in increased sales. As the Wall Street Journal reported, a Boots No7 Instant Illusion Wrinkle Filler sold by kn9ght was discounted 6 percent to $20, which means you can now buy the beauty product from Amazon for the same price as you could from Ulta Beauty. Similarly, Amazon marked down a Risk Legacy board game sold by VirVentures by the same margin, to $43.92, which makes it three cents cheaper than it is at Walmart.

Recommended Videos

The discounts are considered to be special offers, which means they don’t last for more than a few days, and they are valid on items that use Amazon’s in-house fulfillment option. Sellers have noted that they haven’t been notified when Amazon decides to discount their products, but as they still receive the same amount of money, it likely doesn’t really matter.

While this is obviously good news for customers, the Journal notes that Amazon’s decision might negatively affect Amazon’s already tenuous relationship with large brands and manufacturers. And while sellers may not be receiving a smaller check as a result of the discounts, they could end up with less inventory than expected. Plus, the Journal notes, lower prices might “inadvertently violate a merchant’s agreement with a brand to keep its products at or above a set minimum advertised price.”

An Amazon spokeswoman noted that sellers can actually opt out of the discount program, which could address some concerns. But still, it’s unclear how the larger seller community might react to the change. In the meantime, however, you can take advantage of lower prices.

Please enable Javascript to view this content

Lulu Chang
Former Digital Trends Contributor
Fascinated by the effects of technology on human interaction, Lulu believes that if her parents can use your new app…
Amazon planning June discount event to jump-start sales, report says
Amazon logo on the headquarters building.

The coronavirus crisis has hit some sellers hard, with many online shoppers in recent months focusing on essentials over other kinds of purchases while they wait and see how the pandemic pans out.

Hoping to provide a much-needed boost for its third-party sellers, Amazon is close to announcing a one-off “fashion summer sale event," according to CNBC News, which saw an internal document about the initiative.

Read more
How to change margins in Google Docs
Laptop Working from Home

When you create a document in Google Docs, you may need to adjust the space between the edge of the page and the content -- the margins. For instance, many professors have requirements for the margin sizes you must use for college papers.

You can easily change the left, right, top, and bottom margins in Google Docs and have a few different ways to do it.

Read more
What is Microsoft Teams? How to use the collaboration app
A close-up of someone using Microsoft Teams on a laptop for a videoconference.

Online team collaboration is the new norm as companies spread their workforce across the globe. Gone are the days of primarily relying on group emails, as teams can now work together in real time using an instant chat-style interface, no matter where they are.

Using Microsoft Teams affords video conferencing, real-time discussions, document sharing and editing, and more for companies and corporations. It's one of many collaboration tools designed to bring company workers together in an online space. It’s not designed for communicating with family and friends, but for colleagues and clients.

Read more