Amazon is cutting prices of products from third-party sellers on its website, moving beyond its more typical method of discounts on items it sells directly. Jade Barker reports.
Amazon is cutting prices of products from third-party sellers on its website. It's part of a plan to better compete with low-priced rivals, like Wal-Mart, during the holiday season. Daniel Ives is chief strategy officer at GBH Insights. (SOUNDBITE) DANIEL IVES, CHIEF STRATEGY OFFICER, GBH INSIGHTS (ENGLISH) SAYING: "Amazon has the power that really no other company in the world has, and, right now, when you look at Wal-Mart, and you look at what they're doing, that sort of... They set their sights, competition-wise, on that, they know price is something that they can really play with. And I'd say that this is something, this is part of the Amazon strategy, and you're going to continue to see in the holiday season. It's all about getting share on the consumer side. And it's all about price. And, I think, this is just the first sort of, you know, what I would say is the first strategic move in what I see is a series of moves in 2018 as a shot across the bow against Wal-Mart." Amazon says it sells products at lower prices while still giving full price to the sellers. But some merchants have criticized the company in the past for discounting. They say it's devaluing their products.