As the competition in the ecommerce segment stiffens, Amazon is tackling a new strategy and cuts prices for goods sold by third-party sellers on its platform. The ecommerce company will absorb the losses itself and offer sellers the full price for sold merchandise.
The “discount provided by Amazon” applies to products including board games and technological gadgets offered by other merchants as the holiday season approaches, Reuters reports.
This strategy, however, is not without its risks. By trying to market items at lower prices, Amazon may anger its third-party sellers. Some merchants have criticized Amazon in the past for discounting and, they say, devaluing their products.
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