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Amazon Price Parity - Anticompetitive Behavior
Just got this email
nonstop




msg:4384782
 10:06 am on Nov 8, 2011 (gmt 0)

Hi All,


I just got an email from Amazon saying that the prices on my website need to be the same as on Amazon. I can't understand this as the commission on Amazon is 15-20% for the products we sell. Is there anyway around this? we have been selling on Amazon for over 4 years now without any problems and we have 1000s of products there's no way we can set our website prices to the same as on Amazon. Surely this is Amazon trying to control the market?

[edited by: jatar_k at 1:06 pm (utc) on Nov 9, 2011]
[edit reason] no email pls [/edit]

 

piatkow




msg:4384813
 11:29 am on Nov 8, 2011 (gmt 0)


I just got this email from Amazon saying that the prices on my website need to be the same as on Amazon.

Other way around surely. I can understand that they don't want you using Amazon to find prospects then offering discounted follow up sales through another channel.

oliondor




msg:4384821
 11:40 am on Nov 8, 2011 (gmt 0)

Just develop your own shop instead of working for them !

[edited by: eelixduppy at 10:57 am (utc) on Nov 9, 2011]

taylors




msg:4384823
 11:49 am on Nov 8, 2011 (gmt 0)

We use Amazon and ebay to get the customer's initially and then try our best to get them to use our online stores since we don't have to pay ourselves the 15% commission fees that they charge us. I got the same exact letter from Amazon. We do lots of orders on Amazon and eBay but find it very difficult to convert these customers to our online store even with the prices being less and with discount coupon codes.

jwolthuis




msg:4384824
 11:55 am on Nov 8, 2011 (gmt 0)

Surely this is Amazon trying to control the market?

Yes, but you opted-in to sell there (for $40/month), by their rules. Save the $40 fee, and use that money toward Amazon Ads directing buyers to your site.

Otherwise, raise your website prices to match the Amazon price, and offer free shipping on your website.

topr8




msg:4384831
 12:09 pm on Nov 8, 2011 (gmt 0)

>>and offer free shipping on your website.

that would still be breaking the rules!

total amount payable by a customer for that product, including discounts, rebates, promotions and shipping.

jwolthuis




msg:4384904
 3:11 pm on Nov 8, 2011 (gmt 0)

>> that would still be breaking the rules!

Oh wow, you're right.

I'm not sure how you're expected to sync to their standard shipping rates. Maybe add lead weights to those 3 oz packages, to triple the postage?

If you offer a discount or rebate on your site (say, free shipping for orders over $50, or a two-for-one), how do you go about offering that same discount or rebate on Amazon? Isn't that a little tough to do?

CernyM




msg:4385057
 9:55 pm on Nov 8, 2011 (gmt 0)

This has been a part of their seller agreement for as long as we've been selling there - which is since 2004 or 2005.

It just took them a while to notice on your account.

Planet13




msg:4385251
 2:26 pm on Nov 9, 2011 (gmt 0)

Out of curiosity...

Have people been doing well selling through amazon?

We tried it, had a handful of sales, but again, nothing that converted to customers coming to our site.

The other thing is, if you are on Amazon, you are in competition with dozens of other stores explicitly on price, no?

But lots of people sell on Amazon, so how are they making it profitable?

topr8




msg:4385338
 6:49 pm on Nov 9, 2011 (gmt 0)

my only experience of this was a friend of mine who i advised to try selling on amazon ... who did really well as he had a unique product

but within a year or so competition had kicked in and sales went downhill fast.

jwolthuis




msg:4385342
 7:55 pm on Nov 9, 2011 (gmt 0)

To sell on Amazon, you either need a niche product, sell it for free (profiting on shipping), or play the how-low-can-you-go game.

CernyM




msg:4387385
 10:18 pm on Nov 15, 2011 (gmt 0)


Out of curiosity...

Have people been doing well selling through amazon?


A substantial amount of our ecommerce revenues come through Amazon.

We tried it, had a handful of sales, but again, nothing that converted to customers coming to our site.

The other thing is, if you are on Amazon, you are in competition with dozens of other stores explicitly on price, no?


It depends on what you sell. We manufacture our own products and are the only seller for the brand on Amazon.

But lots of people sell on Amazon, so how are they making it profitable?


Most of the successful people who don't sell their own brand spend a lot of time hunting down profitable niches to exploit. As the profits dry up, they find something else to sell.

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