Tesco forced to lower prices as its Amazon alter-ego Oakwood | RetailDetail

Tesco forced to lower prices as its Amazon alter-ego Oakwood

Tesco forced to lower prices as its Amazon alter-ego Oakwood

Tesco has been revealed as the origin of a myriad of goods that are sold on Amazon under the name of 'Oakwood Distribution'. Surprisingly, the British (offline) market leader has been forced to sell on Amazon under the prices of their own website, as the Financial Mail found out.

Oakwood (forced to be?) cheaper than Tesco itself

Oakwood mainly sells DVDs and computer games, often with significant price reductions compared to the official Tesco web shop. The Financial Mail added examples of the DVD of The Social Network, sold for £4.89 via Oakwood, but a full £7 at Tesco – 43% more than at Amazon.

 

It is ironic that Tesco, often criticised for “squeezing suppliers like a lemon” in order to offer the lowest possible prices, now is squeezed itself for lower prices: it seems that Amazon prohibits its third-party sellers to sell their products cheaper anywhere else – even on their own web shop.

 

Misleading the consumers - again?

The news immediately provoked an outcry from Tescopoly, a pressure group without much love for the British market leader. “This would appear to be another example of Tesco trying to sell more to consumers who think they are getting an independent choice.” He points out that this has happened before with the One Stop chain of convenience stores. 

 

Tesco responded with the statement that “It is public knowledge that Oakwood is part of Tesco.” The retailer also stated that it is just Tesco's policy to sell excess stock “competitively through third-party marketplaces” and that still, many consumers chose to buy directly from Tesco.  Amazon, having published very disappointing company results last week, points out that consumers can always check the data of sellers using the new button “Detailed Seller Information”.
 

Questions or comments? Please feel free to contact the editors


Dutch Beate Uhse division not bankrupt after all

05/04/2018

German Beate Uhse’s Dutch subsidiary has not gone bankrupt after all and will continue its activities in both Belgium and the Netherlands. The company revealed the information itself after bankruptcy rumours surfaced.

Amazon often cheaper than Dutch competitors

03/04/2018

Products that are available on both Dutch web shops and Amazon.de, are cheaper at Amazon in about half the cases. Not only do Dutch stores compete with Amazon.de, which ships to the Netherlands, but there are also rumours that Amazon.nl and Amazon.be will soon become more active.

Trump targets Amazon

03/04/2018

President Donald Trump has apparently targeted Amazon as his new enemy. He feels the retail giant is taking advantage of the U.S. Postal Service, something he wishes to remedy with a series of new rules and legislation.

Amazon undisputed ruler of French online world

29/03/2018

Amazon is the undisputed leader of the French online world thanks to a 5.6 billion euro turnover and a 19 % market share. According to Kantar Worldpanel, the overall online market in France was worth 30 billion euro in 2017.

Retail is main driver of artificial intelligence innovations

29/03/2018

Retail companies will invest about 2.76 billion euro in artificial intelligence this year. According to research firm IDC, they are the main driver for AI worldwide, ahead of the banking sector.

Amazon and Monoprix will collaborate

27/03/2018

Amazon will make a huge leap forward in France, thanks to a new collaboration with the French chain Monoprix. A large section of the latter’s product range will soon become available to Amazon Prime Now subscribers.