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by imcqueen 3608 days ago
I have a theory about this, it happened to us when we bought some childrens books on Jet. They came in the mail from Barnes and Noble with a packing slip that had a price higher than we paid included with it.

It doesn't explain the Amazon example you mentioned, but I was under the impression they have special affiliate arrangements with 3rd party retailers and that they were somehow being allowed to invest their affiliate commissions into the consumer (which is typically not allowed).

So if they're making 15% affiliate commissions from B&N they're able to drop the consumer price 10%. They've been focused on scale more than margin since day 1, so it would make sense that they would just operate on something razor thin and continue to drive home that they have unbeatable prices.

For the 3rd party retailers it's a way to compete with AMZN on price without actually having to drop their prices and I can see how that would be attractive to a retailer that's losing market share.

No basis for this, just one man's theory.

3 comments

Here's some basis for you:

https://jet.com/anywhere

This is exactly what they do. You aren't supposed to include prices but some people forget.

The more items you buy, the bigger cut of the commission Jet gives you off. The buyer almost never pays the same cost as what the seller got paid.

I received a box from amazon after making a purchase on Jet.
The seller messed up and violated the Jet TOS to do that.