How do I opt out of "Discount Provided by Amazon"?


#1

There is a new program where Amazon discounts 3rd party seller provided products to compete with other sites for lowest prices. How do I opt out of this?

How do I opt out of “Discount Provided by Amazon”?


#2

https://sellercentral.amazon.com/gp/help/202170300

You need to contact them through Seller Support and request to opt out.


#3

“There is a new program where Amazon discounts 3rd party seller provided products to compete with other sites for lowest prices”

I am afraid the effect could be eventually this depending how it is applied:

There is a new program where Amazon discounts some 3rd party sellers’ provided products to compete with other 3rd party sellers’.


#4

From what I know though you get full payment under the program mention : " you will receive payment for the order and pay referral fees based on the full item price you set."

In this Amazon covers the discounted amount …

so what are you seeing ?


#5

May I ask why you would want to opt out? More sales, happy buyers, and the seller receives the full amount he’d have received if the item had sold without the discount incentive.

Barb


#6

If the OP also has a buyer account, …


#7

Because it +devalues+ the product being sold.

If I offer a product for $100 on Amazon, $105 on my personal website and Amazon cuts that price to $75, Amazon has effectively +devalued+ my product, by offering it for less than the price, +I+ set.

It is completely irrelevant, that I will still receive the full value of the product, after all fees, etc…, because Amazon has given buyers the PERCEPTION, that my product is no longer worth, $100.


#8

The page won’t just offer an Amazon-funded discount, as they often do on their own items? They are actually going to change the sellers’ posted price?

Barb


#9

It crosses out the seller’s price and shows in the listing like this:

Price: --$46.56–
Sale: {color:#FF0000}$42.88{color} & FREE Shipping. Details
You Save: {color:#FF0000}$3.68 (8%){color}
Discount provided by Amazon. Details


This is a “feature”, that should have been announced, to ALL sellers +and+ should have been set up as an, “opt-in”, feature, rather than sellers having to, “opt-out”.

How many sellers may not even be aware, that Amazon is discounting +their+ products, since they will receive the full value?


#10

If we receive full value I am pleased - I don’t understand why someone would be cheaper on Amazon then their own site since we pay amazon a hefty commission.

Devalue me all you want - but keep paying me for the full amount of sales price here - I am happy :slight_smile:

But Rushdie is right - we should have been told and should opt in … not out …


#11

I’m pretty sure I read somewhere the discount would not be higher than 9%. I can’t remember where and have no idea if it’s true.

I haven’t run across any of these discounted products yet, have you seen any discounted above that?


#12

Has anyone actually seen this on an item? Or is sample display based on the news reports of what’s going to be happening?

Edited by: A2N3AWWH4M804I on Nov 8, 2017 1:31 PM


#13

Many of the products we sell are done under dealer/reseller agreements with their manufacturer. These agreements contain MAP (minimum advertised pricing) policies that dictate the lowest prices we can display via on-line channels. If we violate these terms, the manufacturers can unilaterally terminate our agreement and, with it, our ability to represent and sell their products.

This program could result in our product listings being offered at prices below the MAP, jeopardizing our business as a whole.

That said, if there were 2 additional data-fields available in a product listing - MAP protected and MAP price - then AMZN could easily determine what the lowest offering price could be. Additionally, it could easily help them weed out unauthorized sellers, as it would be more difficult to violate MAP policies.

For products that aren’t MAP protected, I agree that AMZN is welcome to reduce their own take via a dynamic pricing model - just keep us whole.


#14

If Amazon is discounting your product to below $100, it’s because another retailer like Walmart has been identified as having a lower price, and Amazon’s discount is intended to be a competitive discount to match that price. I thought that was the entire point of the discount program, am i wrong about that?

In other words by the time Amazon is offering a competitive discount, the product’s price has already been devalued in the market by other retailers offers.

As for your example of selling on your own site @ $105, and Amazon @ $100. Amazon has no reason to offer the discount on your item to begin with as the offer price on Amazon is already competitive. Of course if this is an item others are selling too then Amazon might have incentive, if they are devaluing the product with heavy discounts.

IMO this offer is all about Amazon not ceding market share to major competitors like Walmart over the holidays, due to not having the lowest price on key products that are being heavily discounted. Or somethin’ like that…


#15

WE have already been contacted by more than one manufacturer stating that if we do not opt out and provide proof of doing so, we will lose our online selling privileges for those brands.
In our vertical, Minimum Advertised Pricing (MAP) is take very seriously and violators often are dropped by the manufacturers. This is why we need to opt out.


#16

I was waiting for someone to point out the obvious. That this will cause many sellers to be in violation of their MAP pricing agreements if they are opted in by default.


#17

I think the only sellers who will benefit from this are those selling hot items that are being heavily discounted elsewhere online. These are products Amazon will already be discounting themselves anyway as loss leaders, just to keep buyers on Amazon. Extending the offer to 3rd party sellers makes sense for Amazon. The purpose has nothing to do us, and any benefits to us are just a “bonus” so to speak.


#18

>
> If Amazon is discounting your product to below $100, it’s because another retailer like Walmart has been identified as having a lower price, and Amazon’s discount is intended to be a competitive discount to match that price. I thought that was the entire point of the discount program, am i wrong about that?
>
> In other words by the time Amazon is offering a competitive discount, the product’s price has already been devalued in the market by other retailers offers.
>
> As for your example of selling on your own site @ $105, and Amazon @ $100. Amazon has no reason to offer the discount on your item to begin with as the offer price on Amazon is already competitive. Of course if this is an item others are selling too then Amazon might have incentive, if they are devaluing the product with heavy discounts.
>
> IMO this offer is all about Amazon not ceding market share to major competitors like Walmart over the holidays, due to not having the lowest price on key products that are being heavily discounted. Or somethin’ like that…

Of course, Amazon is price matching - that’s obvious; however, what right does Amazon have to arbitrarily discount a seller’s price or a manufacturer’s price?

Some of us never discount, regardless of what the competition may be doing. Personally, as I’ve stated many times before, we do not follow the crowd. We are not Amazon or Walmart and rely strongly on +repeat+ customers.

The program is fine, for sellers, who do not have their own websites or sell on multiple platforms and are selling products that are readily found everywhere.

However, for sellers under MAP agreements or sellers, who rely on repeat buyers, from their private websites +(where the most profit is garnered)+, it is not acceptable and I repeat, it should have been announced, as an +opt-in option+ and not arbitrarily deployed, as an opt-out, with no advance notice to sellers.

It is another instance, of Amazon’s +arbitrary+ deployment of a program, that not all sellers need or want.


#19

I just tried to opt out. Seller Support said, “Surely we would never opt you in without your consent. So, you’ll be just fine.”

There appears to be nothing to opt out of. This is very, very bad.


closed #20

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