How Amazon Convinces You It Has the Lowest Prices for Everything
When you want to buy an item, you probably think at first that it is cheaper on Amazon. This seems to be the case, and a recent report explains how Amazon gives the impression that they are making things cheaper – even if they are not.
Most people think Amazon has the lowest prices across the board, but it doesn’t. A Boomerang Commerce report outlines Amazon’s primary tactics when it comes to underpricing. Amazon identifies the most popular products on its site and then consistently ranks them against the competition. For example, you can find a popular TV on Amazon that is cheaper than other retailers, but the accessories that come with it may be priced higher to compensate. Or, if you’re looking for a much less popular TV, the price can be increased as well. The report explains:
Amazon may not actually be the cheapest seller of a particular product in any season, but its consistently low prices on the most popular and best-selling items give consumers the impression that Amazon offers the best prices overall – even better than Walmart.
This is called price perception, and Amazon uses this smart tactic to attract and retain customers. This is something to keep in mind the next time you go to buy an item. Remember, do a little shopping. Just because it seems that there are the best prices in one place, it does not mean that they are. Amazon does have great deals and ordering from them is pretty painless, but always do your research .
Achieving Competitive Prices Without Leaping To The Bottom | Boomerang Commerce via Re / Code