As new sales and distribution channel marketplaces force retailers to re-evaluate their price strategy. Most retailers have a uniform price across all channels. This offers transparency to consumers. However, there are several reasons why retailers may want to offer different prices on specific marketplaces:
- Match competitors: when products are sold via marketplaces and competitors offer a lower price, retailers may tend to match competition and lower their price in this specific channel. In those situations price harmonization across channels comes under pressure.
- Get traffic: It is also an option to offer (some) products for a higher or lower price on the marketplace get traffic. In this case retailers sell the some products on the marketplace. However, the more exclusive products can only be bought on the retailers own website. Be warned, some marketplaces like Amazon and Allegro for example demand that the lowest price is always offered on its platform. If the retailer is not offering the lowest price, the product is removed from the platform.
- Reduce inventory: Marketplaces can be an attractive way to get rid of inventory by selling this at a discount on marketplaces.