Received the email a few weeks back:
"Dear Seller,
The purpose of this email is to inform you regarding the launch of a limited four-week pilot for Quantity Discounts by Amazon, which is a new feature within the Discounts Provided by Amazon program you are already enrolled in. This program is one of the many ways Amazon works to provide customers with value and ways to save. The Amazon funded quantity discount may apply to some selected products, that are shipped by Amazon and sold by you, when customers buy multiple units of a single product during a single order, using quantity selector on the product detail page, or during checkout.
This program can benefit both customers and sellers because it offers customers another way to save, and sellers retain the same proceeds as they would for their non-discounted price. However, if you would like to opt out, reach out to Selling Partner Support to remove your selling account from participation. Please note that it is in Amazon's sole discretion to specify products included in this pilot and Amazon may cancel this pilot program at any time and decide whether or not and when to launch/continue Quantity Discounts by Amazon after the pilot period. For more information and FAQs, visit the seller help page."
Had a check, but can't see any threads about this yet.
Double checked some things with support to clarify how it functions with refunds.
Basically the scenario I floated was a customer buys two products that would normally cost £10 each, receive an Amazon funded £1.50 discount, so ppi ends up as £8.50 to them, then they return one of the two for a refund. My question was , what will the refunded amount be?
The answer was what I imagine we'd all expect; the customer would be refunded what they paid for the item returned, meaning they would be refunded the £8.50. As a result, the customer has bought an item for £8.50 that would otherwise have cost them £10.
Basically, this scheme incentivises buyers to order multiple of an item in order to get the discount, then return the ones they don't need, costing the seller money. Is anyone else concerned about this?