‘We were at their mercy’: inside the Amazon tactics that hiked prices across the internet
Summary
Amazon used pressure tactics on product suppliers to raise prices on competing retail websites. Internal emails and court claims show Amazon threatened to reduce sales or demand payments from suppliers if their products were cheaper on rival sites.Key Facts
- Prices for some products like lamps, air fryers, and ice-cream makers increased significantly after Amazon intervened.
- Amazon flagged low prices on competitor sites as threats and told suppliers their sales on Amazon might be cut.
- Amazon lowered prices on some items to match rivals and then asked suppliers to compensate for lost revenue.
- Suppliers often raised prices on Amazon’s competitors or pulled products from those sites to comply with Amazon’s demands.
- California’s attorney general sued Amazon, accusing the company of widespread price fixing to control product prices.
- The lawsuit includes many internal Amazon emails and documents revealing these tactics.
- Examples include a supplier pulling products from Best Buy and raising prices on Amazon, and another paying Amazon $100,000 as compensation.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
