It has been studied and analyzed by various price-monitoring services that Amazon no longer happens to be offering the lowest price these days. The primary factors that influence this trend actually lie in the root cause of implementing scientific evaluation of market analysis.
The top ranking retailer according to Internet Retailer Top 500, still considers price as one of the main consideration but at the same time they also want to take the advantage of more strategic dealing by which they can timely undercut the rivals or can win sales by selling their brand image, or on the basis of availability of stock and other additional facilities like free shipping etc.
However, this strategic change of Amazon’s pricing policy has influenced other retailers to a remarkable extent. In the current holiday season, it has been noticed that, many major Retailers are trying to match the Amazon.com Inc.’s prices. On the other hand there are various other web-only-retailers who are fighting to capture market in different ways instead of trying to compete on pricing offered by Amazon or other top class retailers. .
Recently, Ugam Solutions, a well known online price-monitoring service conducted a study on reputed as well as popular North American retailers and found in 2013, in terms of offering lowest price quotes, Amazon won on 37 out of 50 items. But this year the same figure has changed to be 23. But it is not indicating any set-back. It offers the best selection of various most-wanted products in various types and categories.
Although Amazon does not offer cheapest prices always they always get a longstanding belief of customers across the world that they have the best deals. Apart from this, this giant retailer is exceptionally competent in assessing market apart from mechanically analyzing data. Quite often, apart from pricing, consumers look for other criteria. In this regard, they highly rate and prefer Amazon for their efficiency at every level including timely delivery etc.
It is also assessed that Amazon is not competing that aggressively on price platform for some other reasons also. In certain product categories it has entered into the agreements with luxury brands, that it will go for restricting price competition regarding their products in order to encourage them sell on their website.
At this outset when there is so much discussion about it, Amazon did not make any comment about it. But L2’s McLean perhaps rightly assessed the situation by saying that whatever may be circumstances, Amazon still remains to be the biggest competitor on price, with an unbeatable lowest price online record on 95% of various cosmetics products sold through their website.