Walmart Ups Its Pricing Game Amid Battle With Amazon

Posted: Oct 15 2019, 4:28am CDT | by , in Technology News

 

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Walmart ups its pricing game amid battle with Amazon

The e-commerce battle is heating up ahead of the holiday season.

In the lead up to the busiest time of the year, Walmart appears to be playing a pricing game against its biggest rival, Amazon.

Walmart is working on a new program for its third-party merchants that would ultimately reduce the prices that customers have to pay for some items, Bloomberg News reported, citing the plans, which were then confirmed by a Walmart spokesperson.

The deal is to have third-party sellers pay Walmart a fee to sell their products. The sellers will still receive the same amount that was posted before the price cuts, with Walmart subsidizing the difference, the report said. Bloomberg added that shipping fees will remain the same.

Under the program, called Competitive Price Adjustment, Walmart will pick out sellers and items to be included and merchants will not be able to request to be included.

The news outlet noted that the program mirrors Amazon's previous pricing effort called “Discount Provided by Amazon,” which was introduced two years ago. Under Amazon's version of the program, the e-commerce giant had the power to slash the prices of products sold by its third-party sellers for a limited time. Amazon then pays the seller the difference between the discounted and listed price.

The latest move by Walmart also comes just weeks after Amazon rolled out “Sold by Amazon,” a move that allowed merchants to give Amazon the option to cut the prices of their goods in exchange for a guaranteed payout to help protect their profit margins.

Walmart and Amazon are currently neck and neck in terms of pricing after they both started offering next-day delivery on a range of items.

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<a href="/latest_stories/all/all/81" rel="author">Mandy Jean</a>
Mandy covers the latest news in Tech and Business.

 

 

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