You may not know this, but you can’t buy the GoPro Hero5 or Hero5 Session from Amazon right now, and it’s not because they’re not available to order. The issue is a squabble over pricing that may have cost GoPro as much as $10 million.
According to Fortune, the issue is probably that Amazon decided to sell the Hero5 below the previously negotiated “floor price,” the cheapest GoPro will let a retailer sell their cameras for. Amazon makes up about 12-14% of GoPro’s sales, so a price drop isn’t a small issue… and it goes beyond the units sold on Amazon. Popular retailers like BestBuy price-match Amazon, meaning losses will pile up unless GoPro addresses the issue.
According to some reports, the squabble could cost GoPro as much as $10 million in sales.
The hiatus from Amazon is temporary; in fact, a GoPro spokesperson said the cameras would be back in stock by late October/early November. But that didn’t stop GoPro’s stock from taking a dive as soon as the news broke—according to The Motley Fool, the company’s stock took a 16.8% hit on the week thanks in large part to this unfortunate news.
If there’s a silver lining here, it’s the timing of the squabble: experts tell Forbes, “September or early October is a slow sales month anyway.” However, if GoPro’s absence from Amazon extends further into holiday season, the action cam maker could see more serious damage to their bottom line.