In a new program called “Discount Provided by Amazon,” the online marketplace giant is slashing prices on sellers’ products and covering the difference between the discount and listing price.

There are drawbacks in the short and long term that are giving pause to retailers and brands who sell on Amazon.com Inc.’s marketplace.

Amazon, No. 1 in the Internet Retailer 2017 Top 500, declined to provide details of the program, such as when it launched, on which products these discounts are applied and the size of the discounts. But the company did confirm it is applying discounts on its marketplace sellers’ products, and that it is doing so to offer lower prices to customers. “When Amazon provides a discount, customers get the products they want at a price they’ll love, and small businesses receive increased sales at their listed asking price,” an Amazon spokeswoman says.