Walmart Ramps Up Marketplace Price War With Rival Amazon - Report

The world's largest retailer is subsidizing some third-party vendors selling on its marketplace site, a report says.

Author:: Brenda Bouw
Publish date:: Oct 15, 2019 6:39 AM EDT

The world's largest retailer is subsidizing some third-party vendors selling on its marketplace site, a report says.

Walmart (WMT) - Get Report introduced a program to temporarily lower the price consumers pay for some items on its marketplace site and will cover the cost difference for vendors, Bloomberg reported.

Bloomberg said it obtained a description of the plan, which it confirmed with a Walmart spokeswoman, that sees the world's largest retailer subsidize the third-party vendors selling on the site.

The move comes after rival Amazon.com (AMZN) - Get Report recently introduced a program allowing it to set prices of third-party products sold on its marketplace in return for a minimum payout.

Amazon also come under scrutiny for increasingly leaning on vendors to ensure that their products aren't offered for a lower price on Walmart.com or any other rival website, Bloomberg reported.

Walmart shares were up 0.6% to $119.84 in premarket trading, while Amazon shares rose 0.7% to $1,748.00.

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