In the recent weeks, Amazon has started to lower prices on goods offered by independent merchants by as much as 9%. This move allows the company to compete more severely with low-cost rivals such as retail company Walmart. On the other hand, this could potentially hurt its relationship with some big-name brands, manufacturers and merchants.
The company made this decision just as the important holiday season is around the corner. This will have an advantage of increasing sales as consumers are highly inclined by the drop in prices, especially due to the holiday season where higher purchases are made to gift others. As a result, Amazon and the sellers could face high profits due to the lower prices.
This is related to marketing as it is under the four P's that are combined in differing ways to match the needs and wants of different target markets. This is focusing on one of the four P's, which is price.
Article Published: November 5, 2017
https://www.wsj.com/articles/amazon-snips-prices-on-other-sellers-items-ahead-of-holiday-onslaught-1509883201
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