Amazon provided discounts for Christmas

FSMNews

With the holiday season fast approaching, Amazon has made a decision to lower the prices of products from third-party sellers on its site to help lure customers away from traditional discount retailers.

The Seattle-based e-commerce giant is now cutting prices by as much as 9 percent on goods, such as board games and hi-tech gadgets offered by independent retailers as it aims to compete more strongly against big-name rival merchants, including Wal-Mart Stores Inc. and Dollar General Corp.

But the move has angered some sellers who see the "discount provided from Amazon" devaluing their products.

The third-party sellers whose products have been discounted will still receive full price for the items from Amazon but consumers will be able to purchase them for less which should help bring business to the site during the holidays. She added that sellers have also the option to opt out.

This is the first time Amazon has taken control of third party pricing, and in shouldering the cost itself the company is helping to ensure competitive pricing across the board, keeping customers on the site. (DG) across its entire website, without leaving third-party sellers out of pocket.

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A discount strategy normally will help gain new customers and encourage repeat or high volume buyers.

In addition, some merchants have once expressed their disapproval of the move, saying that discounting has resulted to their products getting devalued.

Consumers often associate low pricing with low quality, so the fear from third party sellers on the site is a valid concern.

Amazon is gearing up for Thanksgiving and Christmas with a new discount scheme.

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