Analysis from price intelligence firm Profitero reveals Amazon.com implements more than 2.5m price changes every day, compared with just over 50,000 total price changes made by brick-and-mortar retailers BestBuy and Wal-Mart throughout November 2013, in its quest to be the most price competitive retailer on the web.
With price the number one driver for value-conscious shoppers, Profitero’s analysis also reveals Amazon.com has increased its number of daily price changes 10-fold over the last 12 months. At the beginning of December 2012, the online retailer implemented just 269,113 price changes.
The extent of Amazon.com’s daily price changes is even more significant when compared with the number of daily price changes implemented by brick-and-mortar retailers Wal-Mart and Best Buy, said Profitero. During November 2013, Best Buy made a total of 52,956 price changes and Wal-Mart a total of 54,633 price changes, highlighting the massive price advantage Amazon has over other retailers – and demonstrating why retailers need to be monitoring their online competitors’ prices every day in order to deliver the most competitive price on the market and avoid losing out on sales.
Volodymyr Pigrukh, CEO and co-founder of Profitero, said: “It’s staggering that Amazon.com is making millions of price changes on a daily basis. The sheer scale of these price changes demonstrates why brick-and-mortar retailers need to be using an advanced online price intelligence solution if they want to compete with Amazon. Profitero predicts the number of price changes is only going to increase as the retail landscape becomes more competitive, and so it’s impossible for any retailer to monitor this number of price changes manually. To understand where they stand against their competitors’ prices and avoid losing out on sales, retailers need to monitor Amazon’s prices on a daily basis. Profitero is the only online price intelligence solution in the marketplace which is capable of monitoring the prices of millions of products every day with the highest degree of accuracy.”
Rip Greenfield, SVP global alliances & business development at Revionics, said: “Today’s hyper-competitive, omnichannel landscape compels retailers to incorporate all sources of competitive pricing data in their pricing and competitive positioning strategies. “Incorporating Profitero’s competitive data with our price management and optimisation solution ensures that retailers can systematically operationalise the use of this critical data to take actions that enhance both price image and profitability.”