Amazon is gearing up for the holiday shopping season and it is doing something new that might save Christmas shoppers some money this season. Amazon has been spied cutting the prices of third-party seller items in its online catalog. The products that are discounted are clearly listed as "Discount provided by Amazon."
The discounts are very small (10 percent or less) and appear to only be for the sellers who are using Amazon's fulfillment service. Amazon does state that the discount is a for a limited time.
It's not clear how exactly Amazon is choosing what products it applies discounts on. The first time the discounts were spied appears to have come about a month ago and so far, Amazon hasn’t made a big deal about them. Amazon reseller Rock Creek Gifts wrote on the official seller forums, "I do not know if this is new or if I just never noticed it before. Discount provided by Amazon is noted near
Details on the discount reads:
- This item is sold by a third-party seller. The discount is provided by Amazon.
- This is a limited time discount.
- Discount does not apply to digital content.
- Discount good while supplies last or until withdrawn by Amazon.
- Shipping charges and taxes may apply to pre-discounted prices.
- Amazon reserves the right to modify or cancel the discount at any time.
- If any of the products or content related to this discount are returned, your refund will equal the amount you paid for the product or content, subject to applicable refund policies.
The problem sellers are having with the policy is that some also sell on Walmart and other online retailers where they are required to keep price parity between locations. The lower prices thanks to Amazon discounts could leave these sellers in hot water. Thankfully, the resellers can opt out of Amazon's discounts on their products.
It should be noted that Amazon is discounting third-party seller prices, and eating the discount. That means sellers will still get paid the higher listing price instead of the discounted price that Amazon shows buyers.