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Dropping-Pricing-Advantage-Of-Amazon-In-Recent-Holiday-Seasons

The pricing advantage of Amazon has dropped in significant categories as compared to the previous year recently.

During the holiday season, retail season gears up as usual for the annual stampede. As per the reports published by a few renowned firms, it was observed that Amazon's historical pricing advantage was deteriorating. Further, according to the research, during the October-November season of 2019, Amazon beat competitors' prices to attract more customers by about 80% in most categories. But it was not the case in the following year; in November 2020, the percentage dropped to 74%. We studied it for 4 major categories for which we had pricing data from the Amazon website and a few of Amazon's competitors.

Amazon's Pricing Advantage Has Dropped In Major Categories

Amazon's-Pricing-Advantage-Has-Dropped-In-Major-Categories

Amazon is known for aggressive pricing strategies. But it has declined recently due to increasing competition. Conversely, one category was positive, with an increase in product percentage to beat the competitor's price by a small margin. The category was entertainment, movies, video games, and music.

This shift could attribute to the repercussions of the COVID pandemic. As per observations, Amazon couldn't beat competitor's to their set benchmark due to the increasing market share of competitors, consumer behavior, government legislation, and many more reasons.

We are indeed observing a great battle in the eCommerce industry. Want to be part of the battle? Contact Product Data Scrape to get the data of your competitors, use price intelligence, and beat your competitors.

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