Amazon Pricing

January 19, 2015 in Daily Bulletin

Jason Del Rey wrote about how Amazon prices its products:

  • Contrary to popular perception, Amazon does not have the lowest prices across all products in a category.
  • Instead it finds the most popular product in each category – say a particular brand of television – then makes its prices lower than competitors for that one product.
  • Since consumers will likely price compare on the most popular product, they’ll see that Amazon has the lowest prices and (incorrectly) assume that this is true for all products.
  • Less popular products in a category seem to be more expensive on Amazon than other websites.
  • Amazon’s peripherals are more expensive than competitor versions. The company may be assuming that customers will be comparing prices of the main product, not its accessories.

Read more about how Amazon’s pricing works, and how you can ensure you get the lowest prices here.

Source: re/code