Amazon Inc. began to slow down their prices sold from third parties and independent merchants on its web site by as low as 9% in the past few weeks. This discount will allows amazon to compete more effectively with other low cost rivals, such as Wal-Mart Stores Dollar General Corp. just as the very important holiday season gets underway. Amazon's customers benefit the most from this discount, although amazon claims their most of their customers aren't even aware of the discount.
It is still unclear how amazon selects which prices to lower. Sellers claim they were not notified from this change.
The unusual move, could further strain Amazon's complicated relationship with big-name brands, manufacturers and its merchant. The company's ultimate goal is to reinvest profits to grow the company. Amazon is fixing the price of some good to gain more sales, and compete against low cost retailers.
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