busyflyin wrote:I'm going to talk to our Sales Manager tomorrow. He handle the Amazon account and will know what it's all about. I'll post my findings.
Here's what he said; Amazon has a system that constantly reviews on-line pricing of other on-line retailers, by SKU. There is an algorithm that basically selects the best pricing and can change their pricing to match the best pricing found.
Conceptually, a retailer can make a mistake, or sell used with same SKU, and if Amazon's system picks it up, it can adjust pricing to same pricing. It's complicated and there was more to the story, but I didn't listen hard enough to understand all of it! Amazon is a nightmare for us manufacturers that try earnestly to offer fair pricing to all of our retailers. We've had some of our biggest accounts ask us why Amazon's pricing is kicking their butts.. that's how it happens!