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August 27, 2010



This is a growing problem with selling on Amazon.com for 3rd party merchants. A simple lesson in microeconomics for numerous 3rd party merchants would make everyone happier, and allow everyone to sell more, including suppliers. Unfortunately, not all merchants are educated in being able to find the optimal price point for their products.

Bruce Lund

You are absolutely right. How do sellers learn that to undercut to sell is a slippery slope that all will slide down together?
Amazon and others may be the ones to help educate their sellers on wise pricing practices.
What do you suggest?
Thank you.

Lewis J Birns

Selling toys below cost is nothing new. It was going on long before WalMart was a toy power. See K-Mart ( 1968 - 1975 ) Sears ( same time frame ) then TRU, Child World and Kiddie City ( Lionel )

Been going on since Hector was a pup.

Gina Manola

I'm glad you posted this piece, Bruce. I'm very curious about Walmart's plans. I attended several Webinar's run by the Renewable Choice. They consulted with Walmart and are helping suppliers become compliant with Walmart's Sustainability Scorecard supplier rating system. According to Renewable Choice, Walmart has a very ambitious plan for reducing waste, carbon footprints, etc. and will be holding suppliers accountable—buyers will be rewarded for purchasing from manufacturers that have a higher sustainability rating.

Has anyone determined how this effort is coming along and how it might affect pricing?

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