Amazon might be hurting fish stores more than other online stores, that’s according to interviews conducted by Reef Builders and talking to major retailers across the country. The data suggests that consumers are comparison-shopping online and in stores for popular aquatics goods and then purchasing directly through Amazon.
Several online retailers have reported that Amazon is now their number one competition versus other online stores in the same industry. Amazon has been making a name for themselves with “low prices” and ridiculous fast shipping from many warehouse centers across the world.
But are Amazon’s prices really low? A new study by Boomerang Commerce reveals, that Amazon has a unique pricing strategy and not as complicated as you might think. Boomerang makes software that tracks prices on shopping sites that compete with its clients, then recommends price changes dynamically. Much larger retailers in the industry use their software.
The study revealed some very interesting tactics the largest being Amazon generally doesn’t have the lowest prices across the board but rather identifies the most popular products and consistently prices them below the competition but on less popular products the prices can be 20-30% higher than other sites.
“Amazon may not actually be the lowest-priced seller of a particular product in any given season,” the report reads, “but its consistently low prices on the highest-viewed and best-selling items drive a perception among consumers that Amazon has the best prices overall — even better than Walmart.”
You can download the report here.