Outsmarting Amazon and Walmart With The Game Of Pricing – Cause And Effect

Stephen Posted On - November 3, 2016

Amazon product listing
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Competition is taking a very serious turn between Walmart and Amazon, and each marketplace has picked up pitch forks to extinguish the enthusiasm of the other to ash. In the process, sellers performing in these platforms together have been nibbling benefits from both. Unfair as it may appear when looking from the marketplace’s point of view, the fact remains that the laws of multichannel selling validates this approach in the part of the selling entities.

The only rule that has been acting as a barrier through the unfairness of the process is that the respective marketplaces will never tolerate sellers upholding the cause of the competitor in comparison with its own. This rule has fallen a little hard on sellers that are struggling to maintain a balance in both platforms especially with the matter of pricing.

In very simple words, when you sell on Walmart website, you will have to ensure that the price of the listed products in this marketplace does not exceed the prices of the same products you may have listed in other marketplaces especially Amazon. Amazon on the other hand, will not tolerate its sellers listing products at lesser prices in some other platform especially Walmart. On discovering the discrepancy, the sellers may be given the boot from the respective marketplaces. By now, sellers are thorough with this piece of undeniable truth.

What happens when you try to outsmart the platform?

More often than not, sellers do not try to outsmart the marketplaces and do their level best to abide by the rules. However, in certain cases it has been observed that sellers make an effort to maintain the price differences between Walmart, Amazon and eBay to suit their profit based causes. Say for example, pulling down the prices in Amazon product listing to stay at par with Walmart.com can compromise profitability of the products after calculating marketplace fees, FBA fees and associated charges. In fact, the sellers can also risk working up a loss.

The sad fact is, whatever the reason be, the marketplaces remain resolute on their pricing / listing policies and are least likely to give a waiver to sellers who are caught in the process.

Is there a way?

The only solution to winning the platform while maintaining price parity is to use high quality software solutions that have been designed for the purpose. These solutions work best when both marketplaces are integrated to perfection. The nature of these solutions is to maintain and harmonize pricing of the same product in different marketplaces while maintaining the regulations of the respective platforms. this can be attempted manually as well, but not many sellers are genius enough to accomplish the same flawlessly and that too in minute by minute basis.

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