Understanding Why Amazon Charges Full Amount Despite Merchant Discounts and Coupons

When you shop on Amazon, you are typically buying an item from a merchant whose prices have been set to account for their costs of bringing the product to market on Amazon's platform. Amazon then takes a commission on each transaction, while the merchant retains the lion's share of the sales revenue.

If you purchase from the merchant directly, they can often offer discounts or coupons without incurring the commission fees that Amazon charges. This makes their product more appealing to customers and also recoups some of the costs that Amazon imposes.

Amazon's Commission and Payment Fees

Amazon charges merchants significant fees for processing transactions on their platform. These fees can substantially erode the merchant's profits, especially for small or medium-sized businesses. As a result, Amazon may choose to incorporate these fees into the final transaction price to avoid further losses.

Amazon's approach is often to charge the full amount to the customer's credit card without honoring the merchant's coupon or discount code. This is because the merchant authorization for the transaction already accounts for their own discounts and offering a further discount would actually reduce their effective profit margin on the sale. Therefore, any coupon or discount applied after the transaction has been authorized by the merchant would not be honored, as it has already been factored into the pricing structure.

Why This Happens

There is a high likelihood that if you apply a discount or coupon code in an attempt to lower the cost of the transaction, it will be ignored by Amazon and the full price will be charged. This is particularly the case when the merchant has already factored the discount into the original transaction price. Amazon does not honor these codes as the transaction has already been processed and the merchant's pricing has been finalized.

Strategies for Affordable Online Shopping

If you are shopping for the best possible price, it is advisable to compare the pricing on both the merchant's site and Amazon. Here are a few tips:

Check Pricing on Multiple Platforms: Look at the prices on both the merchant's site and Amazon to see which offers the best deal, considering any available discounts and shipping costs. Look for Site-Specific Coupons: Sometimes, Amazon itself offers special deals or coupons that can be used directly on their site, further reducing the total cost. Contact the Merchant for Deals: Directly contacting the merchant can often yield better deals or negotiate a lower price.

Payment Processing and Fees

Amazon's payment processing fees can be substantial, making it challenging for merchants to offer discounts and coupons. Merchant fees can range from 3.5% - 15% depending on the merchant's terms and the payment method used. As a result, most merchants prefer to offer discounts directly to customers rather than pass those discounts onto the payment processing costs.

By not honoring coupons or discounts after the transaction has been finalized, Amazon can ensure that merchants do not incur additional losses due to payment processing fees. This practice maximizes the merchant's profit margin while maintaining consistent transaction prices for customers.

In summary, Amazon often does not honor merchant coupons or discounts due to the payment processing fees they enforce. Consumers can shop more effectively by comparing prices across platforms and taking advantage of any site-specific discounts.

Prices listed are subject to change, and offers are subject to availability. Always verify with the merchant before making a purchase.