Amazon US to make grocery brands pay for Prime Day losses

Source: cnbc, Wednesday, Jul 3, 2019

As Amazon grows more profit-conscious, it is making sure grocery brands cover losses on low-priced products sold during Prime Day, one of its biggest sales events of the year.

For this year’s Prime Day, Amazon is charging “additional funding” to certain grocery brands if sales of their promotional products result in a loss for Amazon. Amazon said the change is intended to “fund the profitability gap” of such products, which Amazon purchases wholesale and sells on its own.