Walmart is subsidizing merchants to offer lower prices on its e-commerce marketplace - Business Insider

reports. The initiative, called the Competitive Price Adjustment program, only lowers merchants' prices temporarily, and sellers cannot request to be part of it.Walmart's move is likely a reaction to Amazon's recent initiatives that enable it to better compete on price.

Sold by Amazon, which launched in August, gives Amazon the ability to control the prices of third-party goods on its marketplace. Merchants can voluntarily join the program, and they receive a guaranteed minimum payout so that they're not impacted by Amazon's discounting, per . This allows Amazon to ensure its marketplace prices are as competitive as possible, and it can leverage its tremendous revenue to afford to offer steep price cuts if it wants to. free next-day delivery for inexpensive items, even if the transactions cost it money because of shipping expenses.

Keeping up with Amazon on price, though extremely difficult, is key to competing with the e-commerce titan given price's influence on purchase decisions.

, Business Insider Intelligence's expert product suite keeping you up-to-date on the people, technologies, trends, and companies shaping the future of consumerism, delivered to your inbox 6x a week. >>

Singapore Singapore Latest News, Singapore Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

LendingClub launched LCX, a new digital marketplace platform - Business InsiderLendingClub launched LCX, its new digital marketplace platform that connects institutional investors to its platform to fund loans.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Apple is looking to become a studio - Business Insider - Business InsiderApple made two announcements that suggest it's seeking studio status, including a five-year content TV production deal with Alfonso Cuarón. For the time being apples cash rich advantage is offset by its reluctance to produce anything anyone wants to watch
Source: BusinessInsider - 🏆 729. / 51 Read more »

Lower pay, more harassment: How work in America has failed women of color - Business InsiderNot only are black and Hispanic women paid less than white women on average, women of color report higher rates of workplace sexual harassment. These type of issues need to be discussed more especially on NationalBossDay Are you insinuating that women of color in the same job are getting less money? Now you know that's a lie. Could it be possible that more women of color get pregnant as teenagers, do not have a HS diploma and work at entry level positions due to their lack of education?
Source: BusinessInsider - 🏆 729. / 51 Read more »