On Amazon, 95% of beauty products, 90% of Hair Care & Color products and 81% of Personal Care products are priced lower than any other online retailer. Amazon undercuts online product prices with a variety of mechanisms, including Amazon’s unique price matching crawler that scans e-tailers across the web and Amazon’s competition with third party merchants on the platform. According to Profitero’s analysis, Amazon adjusts its prices nearly 2.5 million times per day for brands that are officially and unofficially distributing.
Winning the “Buy Box” is key for merchants on the platform. Numerous components are considered for Amazon’s “Buy Box” algorithm, including a merchant’s previous sales volume, user reviews and the listing price. Third party merchants are also considered in Amazon’s pricing algorithm, helping to ensure that Amazon can keep its own prices low.
L2 emails keep you up to date on how brands are leveraging digital to grow their businesses.
Join Our EMail List