Price-Match Scam Targets Retail Giants Walmart and Amazon
Since the popularity of eCommerce shopping has skyrocketed, brick-and-mortar stores have struggled to compete. Recently, Walmart found a creative way to stay one step ahead of Amazon—their primary competition. But a price-match scam was in quick pursuit.
Price-Match Brilliance?
Walmart has struggled with fluctuating sales in the past. eCommerce retailers like Amazon make it difficult to retain customers.
It is common knowledge that most Walmart stores honor competitor prices as part of their Ad-Match program. Any shopper can bring in an ad from a competing brick-and-mortar retailer and get a price-match at Walmart.
But in November 2014, Walmart announced they would be extending their price-match guarantee to include online retailers as well.
Several Walmart stores already honor the lower prices of companies like Amazon, but now the practice will be accepted nationwide.
Walmart’s CEO, Greg Foran claims this customer satisfaction strategy will be appealing to the majority of shoppers. Now, consumers can enjoy the affordability that comes with eCommerce sales while still having the instant gratification associated with cash-and-carry shopping from brick-and-mortar stores.
A Flaw in the System
When the price-match plan was just days old, scammers had already appeared on the scene.
Since Amazon publishes user-generated content, several of the site’s users were able to post deceitful listings. They promised to sell high-ticket items at ridiculously low prices.
Shoppers printed these fake ads and took them to Walmart, hoping to cash in. Several consumers were able to get PlayStation 4 game consoles at a fraction of their retail price.
Fortunately, not all Walmart managers fell for these scams. Walmart’s policy states: the item must be currently in-stock at the online retailer’s website at the time the request for the price match is made. Several managers were able to stop the scam by verifying the price with Amazon before honoring the price-match request.
Where There Are Scams, There Are Chargebacks
Walmart’s eCommerce price-match is the first of its kind. And its recent implementation hasn't left much time for evaluation.
However, the general rule of thumb is that chargebacks usually follow scams. Since scammers were able to see a loophole within days of this new venture, it is safe to say more will follow soon.
Any business that is looking to expand its earning potential and sales tactics needs to move cautiously. Merchants should remember there are always scammers looking for easy targets and ways to take advantage of the situation.
If you've noticed an increase in chargebacks following a new marketing technique, let us know. We’ll conduct a free, no-obligation chargeback analysis. We’ll help you close all the loopholes and reduce the risk of chargeback fraud.
