Public CPG companies will always chase growth, which occasionally gets them into trouble when it creates channel conflict. For example, a CPG company decides to sell to Amazon, which then offers lower retail prices than Walmart. Walmart then goes back to the supplier and beats them up until the supplier helps Walmart to regain its price leadership position (sometimes by raising its prices to Amazon or pulling the product completely).

E-commerce retailers do not get better prices on products than brick and mortar retailers. The distribution model of e-commerce companies is more expensive also. So how does e-commerce manage to have lower prices than brick and mortar? In short they make less margin on each item than brick and mortar. CPG companies love this because it keeps their margin structure whole while moving additional volume.