Quote from: t4n0n on June 22, 2021, 17:08:13
No, this is exactly the point. The reason why they destroy the items is to make sure the price remains at a level that is profitable for them. It costs them less in the long run to take a loss one month, if they can still turn a profit the following one.
Allow the price to drop by 50%? That will wipe out all their margins and put them out of business. Better to take the hit, so they can continue to operate.
The product might not even belong to Amazon. Amazon might be simply fulfilling orders. In that case, they wouldn't be able to give it away or sell it at a steep discount even if they wanted to. Retailer will typically clear stock using discounts, to recover as much money as they can. But manufacturer gets product at manufacturing cost. The loss isn't as high. To them, it might be more important to protect value. Discounted old product puts pressure on pricing of new product. If you have product that you believe nobody will buy, then why pay for storing it? Even if you do offer a discount, perhaps you're not expecting to clear stock completely.