360pi’s recent webinar, Retail’s 2013 Holiday Winners and Losers, highlighted that contrary to popular belief, Amazon isn’t always the lowest price.
Amazon focuses on specific product categories at a point in time to be uber price competitive and win share, but in general the company does not aspire to be the price leader across all categories as demonstrated by the chart below which 360pi contributed to this year’s Bain’s Retail Holiday Newsletter # 3, Post-turkey round-up, and the art and science of pricing.
However, Amazon does aspire to be the ‘fastest follower of the price leader” which goes to the crux of the dynamic pricing debate and highlights how a retailer seeking to “buy share” without an accurate view of the competitive pricing landscape can inadvertently become their own worst enemy.
Do you have an accurate current view of your competitors’ prices and product assortment? If not, read up on best practices for price intelligence and competitive monitoring in 360pi’s resource center.