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When Your Retail Partners Find Your Product Cheaper on Amazon

A retail buyer finds your product below shelf price on Amazon. Why it happens, what it costs you, and how to protect retail and Amazon at once.

Troy MarchandCEO

Published Updated 3 min read

Red and black shopping bags on a dark surface

It usually happens in a review meeting. Your retail buyer pulls up Amazon on their phone and shows you your product at a price well under their shelf. Then they ask why they should keep giving you space.

It’s one of the most common reasons owners call us, and one of the most expensive problems to leave alone. A single retail account can be worth more than your entire Amazon channel.

Why it happens

The low price on Amazon almost never comes from you. It comes from:

  • Unauthorized sellers clearing diverted inventory
  • A distributor or dealer ignoring your pricing policy
  • Someone buying at your promotional or closeout price and reselling
  • Sometimes, a retailer’s own overstock finding its way online

And because Amazon price-matches, a low price on another site can drag the Amazon price down too.

Why abandoning Amazon doesn’t fix it

Some brands respond by pulling out of Amazon. The problem is that your product usually stays on Amazon anyway, sold by whoever is holding it, with nobody managing the listing, the price or the reviews. You lose control and keep the conflict.

The fix: consistent price everywhere

What protects retail relationships is a consistent advertised price across every channel, held by the brand. When a retail buyer checks Amazon and finds your product at the same price as their shelf, sold by you or an approved partner, Amazon stops being a threat and becomes proof of demand.

Getting there looks like this:

  1. Find out who’s selling and where they get it. See how to find out who is selling your product on Amazon.
  2. Put a unilateral MAP policy in place for every channel. See how to write an Amazon MAP policy.
  3. Close the supply leaks. See how to trace diverted inventory.
  4. Plan promotions carefully. Deep discounts to one channel often end up on Amazon a few weeks later.
  5. Show your retail partners the plan. A buyer who sees you actively enforcing is far more patient than one who thinks you don’t care.

What to say to a retail buyer right now

Be straight with them. Tell them you know about it, that the seller isn’t authorized, and what you’re doing about it with a rough timeline. Real price recovery usually takes a few months because existing inventory has to sell through, so don’t promise it’s gone next week.

Frequently asked questions

Will selling on Amazon hurt my retail relationships?

Not if your price is consistent. Uncontrolled pricing hurts retail; a well-managed Amazon presence usually doesn’t.

Should I pull my products off Amazon?

Rarely. Your products typically stay on Amazon anyway, sold by others without your control.

How long until the Amazon price recovers?

First sellers often come off in about six weeks; real price recovery generally shows in months three to six.

Written by

Troy Marchand, CEO

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