"We have nowhere else to go and Amazon know it." The FTC and states are going after Amazon, largely for stopping merchants from offering discounts elsewhere.
“Let’s say a product today is sold for $10 on Amazon with ‘free shipping’. If Amazon is forced to unbundle the FBA fee from the product price then it would cost $6 + $4 shipping.
In the short term, this is going to bring Amazon even more money. They’ll just accept both until a competitor comes along.
Often times things are cheaper elsewhere these days. MSRP isn’t really a good deal. The problem is Amazon has become the default and spends an enormous amount of money to make sure you are directed there.
I think most customers can figure out the bottom line price including shipping and compare that with other places, eg comparing Amazon to Ebay. What this will mean though is that websites will no longer bundle the price together, shipping and the item will be separated and prices will go up.
In the short term, this is going to bring Amazon even more money. They’ll just accept both until a competitor comes along.
That doesn’t add up. The majority of what Amazon sells is at MSRP.
Often times things are cheaper elsewhere these days. MSRP isn’t really a good deal. The problem is Amazon has become the default and spends an enormous amount of money to make sure you are directed there.
Amazon often times has to lower its prices to match retailers though. It’s definitely not the default.
I think most customers can figure out the bottom line price including shipping and compare that with other places, eg comparing Amazon to Ebay. What this will mean though is that websites will no longer bundle the price together, shipping and the item will be separated and prices will go up.