Thursday, March 22, 2018

Amazon reportedly pressuring suppliers as price war escalates

Retail Dive

Amazon appears to be taking a page from Walmart’s playbook, passing on costs to suppliers in order to maintain its price edge. Amid an escalating price war and the higher costs of online fulfillment, the retail giants need vendors to take on more of the expenses and customers to consolidate their purchases.

The e-commerce giant already pushes tiny items into larger orders by offering them only as "add ons" to larger purchases, which are subject to minimums even for Prime members, which otherwise don’t face minimum order amounts for free two-day shipping. But otherwise Amazon has been raising prices for some time and that indicates there could eventually be cracks in its momentum, according to retail analyst Nick Egelanian, president of retail development consultants SiteWorks International. . . . more