Tuesday, January 13, 2015

Best Reading of the Day - Entry 0184 Amazon Pricing

This little story over on Re/Code is well worth the time:

http://recode.net/2015/01/13/how-amazon-tricks-you-into-thinking-it-always-has-the-lowest-prices/

Here is a snippet from the piece:

The study of Amazon’s pricing uncovered some interesting tactics. First, Amazon doesn’t have the lowest prices across the board, which may not surprise industry insiders but might surprise Amazon shoppers.

Instead, according to Boomerang’s analysis, Amazon identifies the most popular products on its site and consistently prices them under the competition. In one example, Boomerang observed Amazon testing price reductions on a $350 Samsung TV — one of the most popular TVs on Amazon — over the six months leading up to Black Friday. Then, on Black Friday, it dropped the price to $250, coming in well below competitors’ prices.

Pretty sneaky overall, but not unexpected.

Happy Reading,

J.W. Gant

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