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.

How to find cheaper car insurance in minutes

Getting a better deal on car insurance doesn't have to be hard. You can have The Zebra, an insurance comparison site compare quotes in just a few minutes and find you the best rates. Consumers save an average of $368 per year, according to the site, so if you're ready to secure your new rate, get started now.

Read Next
10 Purchases You Should Not Put on a Credit Card
10 Purchases You Should Not Put on a Credit Card

Credit cards offer many conveniences and protections, but sometimes it’s simply smarter to keep the plastic tucked away.

10 Times You’re Right to Be a Cheapskate
10 Times You’re Right to Be a Cheapskate

Sometimes, clever shoppers can save money without sacrificing quality. Here are some great examples of how to do it.

New Ways to Save Money on Insurance of Every Kind
New Ways to Save Money on Insurance of Every Kind

Tech startups are making it easy to find the best rates for all kinds of insurance policies — and get covered fast.

Beware These 3 Tax Penalties on Retirement Accounts
Beware These 3 Tax Penalties on Retirement Accounts

Protecting a nest egg is tough — but you can make the situation far worse with some boneheaded mistakes.

16 of the Most Outrageously Overpriced Products
16 of the Most Outrageously Overpriced Products

Retailers mark up products by hundreds of times their cost — but you don’t have to pay the premium.

View this page without ads

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

Get Started

Most Popular
Will I Get My Ex-Husband’s Social Security When He Dies?
Will I Get My Ex-Husband’s Social Security When He Dies?

Two factors determine how much money is coming to you.

7 Ways to Boost Your Credit Score Fast
7 Ways to Boost Your Credit Score Fast

Your financial security might soon depend upon the strength of your credit score.

16 Amazon Purchases That We Are Loving Right Now
16 Amazon Purchases That We Are Loving Right Now

These practical products make everyday life a little easier.

22 Things You Should Always Buy at a Dollar Store
22 Things You Should Always Buy at a Dollar Store

The dollar store has great bargains on these purchases.

5 Household Disinfectants That Can Destroy the Coronavirus
5 Household Disinfectants That Can Destroy the Coronavirus

You likely already have some of these products at home.

20 Things That Are Actually Worth Stockpiling
20 Things That Are Actually Worth Stockpiling

You probably don’t need a year’s supply of toilet paper to survive an outbreak, but consider stocking up on these items.

6 Reasons I Will Never Trust Suze Orman
6 Reasons I Will Never Trust Suze Orman

Beware: The self-proclaimed personal finance expert has a track record that suggests more sizzle than steak.

America’s Most Reliable Appliance Brand Is a Surprise
America’s Most Reliable Appliance Brand Is a Surprise

Have you heard of this appliance manufacturer?

This Type of Social Security Benefit Is Often Overlooked
This Type of Social Security Benefit Is Often Overlooked

The Social Security Administration is not helping certain people get money to which they are entitled, a report says.

Getting These 2 Shots Could Reduce Your Risk of Dementia
Getting These 2 Shots Could Reduce Your Risk of Dementia

These vaccines may lower the risk of Alzheimer’s disease by up to 40%.

9 Everyday Problems You Can Solve With Vaseline
9 Everyday Problems You Can Solve With Vaseline

Forget expensive specialty products. Good ol’ petroleum jelly can address many common annoyances.

19 Purchases That Buyers Almost Always Regret
19 Purchases That Buyers Almost Always Regret

Think twice before buying these things.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

These jobs pay more than the typical job in the U.S. — and no bachelor’s degree is required.

7 Tips for Building an Emergency Stockpile
7 Tips for Building an Emergency Stockpile

A pandemic or natural disaster could leave you reliant on your existing food supply. Is your pantry prepared?

8 of the Worst Things to Buy at a Dollar Store
8 of the Worst Things to Buy at a Dollar Store

Not everything sold at dollar stores is a great bargain or a safe purchase. Here’s our list of products to avoid.

41 Things You Should Never Buy
41 Things You Should Never Buy

Some purchases are just plain dumb. Give yourself — and your budget — a break. Don’t spend money on this stuff.

5 Ways to Get Amazon Prime for Free
5 Ways to Get Amazon Prime for Free

Hesitant to drop $119 a year on an Amazon Prime membership? Here’s how to get it for free.

7 Ways to Shop at Costco Without a Membership
7 Ways to Shop at Costco Without a Membership

You don’t necessarily need to join to get in on the warehouse store’s savings.

13 Brilliant Bulk-Buy Items on Amazon
13 Brilliant Bulk-Buy Items on Amazon

Every household should have these products on hand. Buying them in bulk on Amazon saves you cash.

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.