Walmart Ramps Up Marketplace Price War With Rival Amazon - Report
Walmart (WMT) - Get Walmart Inc. 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 Amazon.com, Inc. 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.
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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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