Walmart accused of penalising Amazon suppliers

Walmart has been accused of demanding discounts from suppliers in Mexico after finding the same items sold for a lower price on rival Amazon’s platform.

According to Reuters, two suppliers have removed their brands from Amazon’s Mexican website over fears that it would negatively affect their relationship with Walmart, which represents around 60 per cent of the grocery market in Mexico.

The two suppliers have accused Walmart of demanding discounts from them, after it found their items for sale on Amazon, despite them having no control over how much Amazon sells them for.

READ MORE: You can now buy Walmart groceries with your Google Home Hub

Both suppliers said their wholesale prices were the same for Walmart and Amazon, and that the former docked their payments to make up the price difference, costing them tens of thousands of dollars.

Walmart, which owns Asda here in the UK, has over 2400 stores in Mexico, which represents its second most lucrative foreign market.

Amazon is relatively new to Mexico, launching their in 2015, but has already become one of its largest online retailers.

“They’re worried that Amazon will grow in Mexico,” co-founder of retail advisory firm Brick Meets Click Bill Bishop told Reuters.

“They’re saying: Be aware of the fact that we’re not going to make it easy for you to grow here.”

Amazon declined to comment on the issue and Walmart said it would not discuss the allegations but told Reuters is does not demand who its suppliers can do business with.

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