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How Retailers are Competing with Amazon - Holiday 2017

Posted on 12.11.2016

Amazon continues to dominate the e-commerce landscape but other retailers including Walmart, Jet, Newegg, BestBuy and Target are using a combination of competitive pricing, larger product assortments, high product availability and marketplace strategies to compete.

Retail performance management solution Boomerang Commerce released its annual "Boomerang Insights: Consumer Electronics Category" report comparing pricing, assortment and availability on this holiday season's popular electronic devices and it indicates Amazon isn't always the best choice for consumers (or retailers promoting their goods on that platform).

This year's report indicates that Walmart and Jet are undercutting Amazon on price while NewEgg and Walmart and leveraging their marketplace investments to compete on assortment.

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One of the highlights of the report is that Walmart and Jet offer the lowest prices on a sample of Amazon’s more popular electronics products, with 37 percent and 42 percent of analyzed items priced the same or lower than those found on Amazon, respectively. In contrast, Target and Best Buy had only 18 percent and 17 percent priced the same or lower than the same sample of popular electronics products found on Amazon, respectively.

“Boomerang Commerce’s analysis of consumer electronics products shows that successful retailers are using a combination of competitive pricing, large product assortments, high product availability and marketplace strategies to compete with Amazon," says Boomerang Commerce CEO Guru Hariharan. "This holiday season, Walmart and Newegg are making huge strides expanding their assortments through marketplace investments, while Jet and Walmart are competing aggressively with Amazon on price.”

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