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.
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.