‘We were at their mercy’: inside the Amazon tactics that hiked prices across the internet
Internal Amazon emails and court documents examined by the Guardian show how the company pressured suppliers into raising product prices on rival sites such as Walmart, Best Buy, Target and Home Depot. When suppliers priced items cheaper elsewhere, Amazon staff flagged this as a threat to its own margins, cutting or threatening to cut a supplier's Amazon sales unless it raised prices with competitors or pulled products from their platforms entirely. This matters because it suggests the price rises many consumers have faced were not simply due to supply and demand, but the result of a deliberate corporate strategy by the world's largest online retailer.
The findings stem from a trove of emails, presentations and depositions obtained by California's attorney general, Rob Bonta, as part of a lawsuit accusing Amazon of price fixing, alongside interviews with 15 current and former Amazon and supplier representatives. Examples cited include a table lamp at Walmart rising from $24.99 to $39, an air fryer on Newegg jumping from $84.99 to $149.99, and an ice-cream maker pulled from Best Buy before more than tripling in price to $59.99 on Amazon. Other emails describe Amazon cutting its own prices to match rivals, then demanding suppliers compensate it for the lost revenue. Amazon denies engaging in price-fixing and says its practices are aimed at lowering costs for consumers.
- Amazon pressured suppliers to raise prices on rival retail sites
- Court documents cite an ice-cream maker, air fryer, lamp price hikes
- Amazon denies price-fixing, says it works to cut consumer costs