In this episode of Retail Right Now, Joe Keenan discusses Amazon.com’s decision earlier this week to eliminate a rule that kept U.S.-based third-party merchants selling products on its marketplace from selling those same products in other channels, such as their own websites, for lower prices. Critics of Amazon cited the “price parity provisions” as a violation of antitrust laws. With this rule lifted, it will be interesting to see if more brands decide to sell on Amazon given that they will have control of pricing off of the marketplace. The decision could open the door for more established brands to begin selling on Amazon's marketplace.
Total Retail published a two-part article this week by Craig Haynor of Ally Commerce related to this topic. Haynor’s series evaluates the pros and cons in selling to (1P) and selling on (3P) Amazon. You can read part one here and part two here.