Beating Amazon with Pricing Insights
Believe it or not, Amazon does have some weak spots and savvy online retailers are figuring out how to take advantage.
Pricing intelligence solution 360pi released findings from a study which analyzed Amazon's own product assortment in several categories relative to other retailers. What the data revealed was that retailers are currently beating out Amazon 20 percent of the time, showing that retailers can compete, particularly if they can beat Amazon on other non-price purchase factors.
360pi's "Amazon Holiday Pricing Insights" dashboard reports provide a daily view into the giant retailers pricing strategies and tactics during the holiday shopping season. The report also provides daily pricing insights for 27 other retailers from November 15 to December 2.
“Given that our holiday reports are based on products drawn from Amazon’s own assortment, you would expect them to be price competitive,” stated Alexander Rink, CEO, 360pi. “What is interesting is that when you factor in different retail competitive strategies like carrying a different assortment, leveraging private label, delivering targeted customer promotions, and creating unique customer experiences in addition to price leadership, it certainly appears that retailers are learning how to compete with Amazon.”
360pi provide an example of dynamic pricing, looking into the pricing history of "power drills" from Oct. 16 to Nov. 14. Once Home Deport for example chose to be price competitive on Oct. 26, they were instantly and dynamically able to beat Amazon prices.