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Profitero is out with a new study concluding that “Amazon is still the overall industry price leader, averaging 13% less expensive than other major online retailers in the US.”

The study “compared prices on 100,000 products across 16 retailers from April – June 2018” and found that “Amazon had the lowest prices on the broadest selection of popular items, winning 11 out of 15 categories studied. had the most competitive prices to Amazon’s, with prices averaging 2.3% higher. Jet had prices 4.2% higher than Amazon, while Target averaged 11.9% higher.

Amazon, however, is not getting it done in grocery: “In February 2018,” the study points out, “Profitero noted that Walmart, Jet and Target were locked into fierce price competition with Amazon within online grocery. Since then, has separated from the pack, lowering grocery prices by 5%.”

There were a few other exceptions “where Amazon wasn’t the lowest priced in market. For instance, was 2.3% cheaper in pet supplies and had lower prices than Amazon in beauty (.4%) and music & CDs (2.6%).”

The study also found that “Amazon continues to dominate specialty retailers: Amazon’s price advantage was most notable versus specialty stores. On average, Amazon was 13.3% cheaper on appliances and 15.2% cheaper on electronics versus Best Buy; 18.4% cheaper on sporting goods versus Dick’s.”
KC's View:
Since Amazon largely is a price-follower rather than a price-leader, this illustrates the degree to which it can use its algorithms to identify what competitors are charging and then adjust its prices accordingly in the places where it matters. None of this is random or accidental, I think … it is all consciously determined by Amazon, and highly specific.