Have you ever bought something on Amazon and found its price drop shortly after your purchase? If yes, then your experience is no different from many others.
Amazon is known for changing its products’ prices in order to offer the best available deal and if you are a regular customer of Amazon, then constant price discounting shouldn’t come as a surprise. But the frequency at which the company is now changing its prices is incredible.
According to a price intelligence firm Profitero, Amazon.com implements more than 2.5 million times price changes a day . By comparison, Walmart and Best Buy changed their prices roughly 50,000 times each in the entire month of November.
Image Credit: Profitero
The report also mentions that the amount of price drops by Amazon has increased ten-fold over the last 12 months. These fluctuation moreover, aren’t just limited to one particular category or to physical goods. The retail giant has cut-slashed the price of its cloud services to over 30 times now, since 2006.
Profitero predicts that the number of price changes will increase as the retail landscape becomes more competitive. It is important for retailers to understand the need of price changes and keep monitoring their competitors’ prices every day in order to deliver the most competitive price on the market and avoid losing out on sales.
No wonder Amazon provides massive price advantage over these major retailers. Its business significantly rely on the ability to provide the cheapest available deal, as much as possible – just like any other online retail store.
We spoke with several major eCommerce players operating in India and received a common reply saying that they do not make the pricing decisions. Sellers decide on pricing by themselves and are free to change the same for their listings, if and when they want.
Looking at the current online marketplace model being followed by indian eCommerce retailers, it does make a sense why they have no control over their products’ prices. But keeping the online retail competition in mind, don’t you think providing the cheapest available product online is the need of today’s eCommerce industry ? And how Amazon.com does that is the real question here. Let us know what you think.
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