Amazon Is Slashing Marketplace Prices This Holiday Season

Photo by Julie Clopper / Shutterstock.com

Expect to see lower prices on Amazon this holiday shopping season — and not just because it is among the retailers that have already unveiled Black Friday deals.

Reuters reports that Amazon is cutting prices on certain products offered by third-party sellers on Amazon’s website. This “discount provided by Amazon” is being applied to items ranging from board games to tech gadgets.

Reuters reports that this comes as Amazon has been trying to compete with low-cost rivals like Wal-Mart Stores, which owns Walmart and Sam’s Club.

This particular discount enables Amazon to reduce third-party sellers’ prices but still give the full price to those sellers. In other words, Amazon is covering the cost difference, the Wall Street Journal reports.

The newspaper notes that this approach marks a departure from Amazon’s standard price-cutting practices. In the past, Amazon has generally stuck to discounts on items that the company sells directly to shoppers.

According to the Wall Street Journal, Amazon has reduced prices on items sold by third parties by as much as 9 percent in recent weeks. Two examples:

“On Amazon this week, a Boots No7 Instant Illusion Wrinkle Filler sold by kn9ght was marked down 6% to $19.99, matching the same price offered online by retailer Ulta Beauty Inc. Amazon discounted a Risk Legacy board game sold by VirVentures by 6% to $43.92, 3 cents less than at Wal-Mart. ‘This item is sold by a third-party seller. The discount is provided by Amazon,’ Amazon says on listings with the new tag.”

For more ways to save money on Amazon, whether you’re buying direct or from third parties, check out “10 Strategies to Save Big Bucks on Amazon.”

The Amazon Marketplace

In addition to being a retailer that sells items directly to shoppers, Amazon serves as a platform that enables independent merchants to sell items online. This platform is known as the Amazon Marketplace, and it’s open to third-party companies as well as individuals like you and me.

Sellers who plan to sell more than 40 items per month, which Amazon calls “professional” sellers, pay $39.99 per month plus other selling fees to post items on the Amazon Marketplace. Sellers who plan to sell fewer than 40 items per month, called “individual” sellers, pay $0.99 per sale plus other selling fees.

The Amazon Marketplace has been around since 2000. Today, Amazon reports, more than 40 percent of the website’s total unit sales are by third parties.

To learn more about how you can make money on the Amazon Marketplace and competing platforms like eBay, check out “How You Can Make Extra Money Buying Locally and Selling Globally.”

What’s your take on this news? Share your thoughts below or over on our Facebook page.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
How Much of My Social Security Benefit Can My Ex Take From Me?
How Much of My Social Security Benefit Can My Ex Take From Me?

A man wonders if his ex-wife will siphon away his Social Security benefit.

3 Easy Ways to Get Laundry Soap for Nearly Nothing
3 Easy Ways to Get Laundry Soap for Nearly Nothing

Not using any of these methods for saving on laundry detergent? Then, you are washing money down the drain.

Grow Your Savings in 2020 With These 5 Tricks
Grow Your Savings in 2020 With These 5 Tricks

Saving money doesn’t have to be painful. Here are some ways to game yourself into stashing more cash.

These Are the 10 Worst Cars for Depreciation
These Are the 10 Worst Cars for Depreciation

Two types of vehicles are especially likely to see steep plunges in value.

19 Things You Should Never Buy at a Grocery Store
19 Things You Should Never Buy at a Grocery Store

These household necessities are overpriced at the grocery store. Get them cheaper at these places instead.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
10 Things Frugal People Never Buy
10 Things Frugal People Never Buy

If you’re a true tightwad, the mere thought of spending money on these items gives you the willies.

7 Social Security Benefits You May Be Overlooking
7 Social Security Benefits You May Be Overlooking

There’s more to Social Security than retirement benefits.

If You Find This Thrift Shopping, Buy It
If You Find This Thrift Shopping, Buy It

Whether you resell it for a big profit or add it to your own wardrobe, this type of clothing is a hidden steal.

10 Cars You Are Most Likely to Keep for 15 Years
10 Cars You Are Most Likely to Keep for 15 Years

The cars that owners hold onto the longest have one thing in common, a new study shows.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

The 6 Best Investing Apps for Beginners
The 6 Best Investing Apps for Beginners

If you’re looking to ease into investing in the coronavirus economy with just a little money, check out these easy-to-use tools.

14 Things You Should Stop Buying in 2021
14 Things You Should Stop Buying in 2021

These convenient household products come with hidden costs that you might not have considered.

7 Kirkland Signature Items to Avoid at Costco
7 Kirkland Signature Items to Avoid at Costco

Even if it seems you save a bundle buying Costco’s Kirkland Signature brand products, they may not be the bargain they appear to be.

10 Useless Purchases You Need to Stop Making
10 Useless Purchases You Need to Stop Making

You might as well flush your money down the loo if you spend it on these things.

8 Things You Should Replace to Improve Your Life Today
8 Things You Should Replace to Improve Your Life Today

Being frugal isn’t smart if you put off replacing these items.

9 Things You Should Never Leave in a Car
9 Things You Should Never Leave in a Car

Thinking of leaving these possessions in a car? Prepare for unexpected consequences.

9 Mistakes People Make When Cleaning With Vinegar
9 Mistakes People Make When Cleaning With Vinegar

Cleaning with vinegar can save you a lot of money, but using it like this can cost you.

13 Amazon Purchases We Are Loving Right Now
13 Amazon Purchases We Are Loving Right Now

These practical products make everyday life a little easier.

7 Income Tax Breaks That Retirees Often Overlook
7 Income Tax Breaks That Retirees Often Overlook

Did you realize all these tax credits and deductions exist — or that they apply to retirees?

10 Things Successful Retirees Do Differently
10 Things Successful Retirees Do Differently

These habits and characteristics can help put you on the track to success.

7 Costly Health Problems That Strike After Age 50
7 Costly Health Problems That Strike After Age 50

As we age, our bodies wear down. Here is how to cut costs associated with some common ailments.

29 Purchases That Can Save You Money Every Day
29 Purchases That Can Save You Money Every Day

Sometimes, you’ve got to spend to save.

7 Things I Never Buy at Costco
7 Things I Never Buy at Costco

A bulk buy isn’t always the best buy.

5 Tax Mistakes to Avoid in Retirement
5 Tax Mistakes to Avoid in Retirement

Even great savers can reduce their retirement income by making these mistakes.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.