Who pays for Amazon price errors?

Smiley82 on 28/07/2022 - 14:31

When a product is priced incorrectly on Amazon and sold and fulfilled, who foots the bill?

It seems to happen a lot in pantry, especially when items are added for the first time.

Ie. box of items sold at price of a single item.

Items are sold by Amazon and fulfilled by prime.

I have been seeing a few of these lately, and yes, can confirm the full box was sent (often wasn’t the case in the past), but it did make me question who foots the bill. Amazon, or the company supplying the product to Amazon?

General Discussion

Related Stores

Amazon AU
Amazon AU
Marketplace

Comments

  • Hybroid on 28/07/2022 - 14:33
    +3

    Amazon does. The wholesale agreement with supplier is separate from retail pricing.

    Amazon buys product for $X and sells it for $X+Y or sometimes $X-Y as a loss leader for various reasons.

    • vinnychase on 28/07/2022 - 15:33

      Do the Brands in Myer work in the same manner or are they more independent?

      • Hybroid on 28/07/2022 - 15:45

        I'm not privvy to Myer's internal workings but I imagine there's a multitude of different agreements in place there typical of most department stores.

        You'll have some internal brands (like RESERVE) which may operate similar way where Myer buys straight from manufacturer for X wholesale and sells for X+Y retail. Unlikely to have many loss leaders in this space as clothing profit margins are huge so even deep discounts to attract people to come in-store or browse website in hopes of buying other stuff are still proftable or very least break even.

        There'll be concession brands (like Gucci) that hire space within Myer and then other third party distributors (like Caterpillar/Skechers/Vans run by Accent Group) that will have some form of commercial agreement based on % sales revenue.

        Or indeed a mixture of all the above. I would imagine PVH group with their many brands have a hybrid agreement based on sales floor space rental as well as cut of revenue etc.

      • dizzle on 28/07/2022 - 23:01

        That would probably depend. Brands like Sportcraft and Polo (as far as I am aware) are concession stores that own their own stock pay rent to Myers (and maybe a % of sales I'm not sure), and have their own salesperson to sell it (although they can be purchased from any register). They set their own prices. Some like Meile are sold by Myers but sourced direct from the company and they would set their own prices.

        Other brands like Levi, Sony and I would guess 50-80% of the store, the stock is owned by Myers. Discounts may be funded by suppliers by rebates or bulk purchases, but the prices would be set by Myers.

  • SF3 on 28/07/2022 - 14:49
    +1

    Shareholders.

    • pegaxs on 28/07/2022 - 15:35
      +1

      I was going to say "inevitably, the end consumers pay for it…"

  • vinnychase on 28/07/2022 - 15:37

    more like Amazon's Cash Cow AWS does and not just for Price errors, more often than not even RRP sales aren't profitable for Amazon.

  • the Unforgiven on 29/07/2022 - 14:59

    I got an email yesterday saying I did not have enough money in my account to pay for the items I bought, but I did when I bought them 11 days ago! Why doesn't Amazon take the money out then? It does a check then to see if you have enough money to pay for the goods, so why not take out the money then, not 11 days later? I am a pensioner with a very bad memory to boot, I don't have money the day after pension day!

    • vinnychase on 29/07/2022 - 18:45
      -1

      Its quite unfortunate that your username checks out

  • shap08 on 29/07/2022 - 19:04

    Amazon cancelled all my prime day deals, claimed the parcels got lost…

Login or Join to leave a comment
Login Join