Many times, yes. "MSRP" stands for "Manufacturer's Suggested Retail Price". Now, not all products come with MSRPs, and unless there is a contract between produ

Many times, yes. "MSRP" stands for "Manufacturer's Suggested Retail Price". Now, not all products come with MSRPs, and unless there is a contract between producer and retailer on a pricing floor, the retailer is free to set the price of a product as high or low as they want. But, there is a key difference here. Let's use your supermarket as our example. A supermarket sells both Rao's Pasta sauce (7.99) and MarketBrand Pasta Sauce (2.99). The difference is that the store has paid Rao's 2 dollars to purchase their sauce which they then mark up to 7.99, and had their store band produced for them at a purchase price of 1.25. Both manufacturers have been compensated for their products. Instead, what Amazon does is take a shipment from Rao's with the promise that they will be compensated 2 dollars for each bottle that is sold (which requires Raos to tie up inventory/money) and then undercuts their price with a product that they produce themselves and list on their page much more prominently, after using Rao's product previously to demonstrate market demand for that type of good in their store.