retail news in context, analysis with attitude

by Kevin Coupe

Digital Journal reports that Profitero, which provides and analyzes online competitor pricing data, has revealed that Amazon implements more than 2.5 million price changes each day - a rate of change that has increased by 10 times over the past year.

That would be Eye-Opening enough.

But it is the competition that provides an even bigger Eye-Opener.

According to Digital Journal, "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 Walmart and Best Buy. During November, Best Buy made a total of 52,956 price changes and Walmart 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."

Now, it is important to keep one bit of context in mind … that Profitero sells services that these online competitors could use to gather actionable intelligence about what Amazon is doing, and what other companies must do to compete.

But if its numbers are accurate - and they certainly seem reasonable to me, just knowing what I do about Amazon's algorithm-based approach to pricing - then these figures speak volumes about the changing nature of competition in the online world, and how it will affect the bricks-and-mortar world.
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