Amazon changes item's price 8 times in a day
The company alters its pricing more in a few hours than Best Buy and Wal-Mart do over an entire month.
Amazon (AMZN) changes prices on its millions of products throughout the day.
Sometimes, that means altering the price of a single item several times over the course of 24 hours, according to a new report.
The report cited one case where the e-commerce giant changed the price of a wireless internet router eight times in one day. The price of the router fluctuated between $185 and $200, as shown in the graph below.
Amazon bases many of its price changes on the actions of competitors.
"What Amazon aspires to be is the fastest follower of the price leader," said Jenn Markey, the vice president of marketing for 360pi, the price intelligence firm that authored the report.
Amazon has been estimated to alter its prices more than 2.5 million times daily. By comparison, retailers such as Best Buy (BBY) and Wal-Mart (WMT) make roughly 50,000 price changes over the course of an entire month.
The 360pi report estimates that Amazon changes the prices of 15 percent to 20 percent of its inventory daily.
The retailer's price activity can depend on the product, Markey said.
"Amazon has already secured significant share in electronics and enjoys popular perception of being the price leader, which generally translates to fewer price changes for products in this category," she said. "The opposite would apply to home renovation products today, a category that Amazon appears to be targeting for share growth."
Amazon also makes price changes according to the time of day when consumers are most likely to be shopping for a particular category.
"For example, there are more frequent price changes for video games in the evening than daytime," she said.
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I've stopped shopping at Amazon long time ago, because there are already many other online retailers offering comparable prices. Amazon, you're not the king. Other online retailers are offering similar or even cheaper price than you. For airlines ticket, I've no choice but to tolerate those crap to get the low price (cuz airline ticket is not cheap). But for simple electronic things, I can go other online retailers for the same price or even cheaper and don't have to spend unnecessary time on Amazon site. This type of tactic is annoying.
According to the graph, you say I should buy my item between the hour of 8 and 15, or it is not predictable?
I would like to know if overall, the prices generally decrease as they change over the course of 24 hours. If so, then YIPEEE. Maybe one should shop in the afternoon and evening. I am a devout Amazon shopper. I find most items for less on Amazon and I don't pay for shipping, ever.
Also, the selection is large compared to most brick and mortar stores. I can trust their customer service and that has intrinsic value.
Amazon customers consistently get great pricing and service. We, as vendors, get customers and do what ever we can to move customers to our websites where even greater discounts are as we do not have to pay Amazon fees.
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