Analysis from price intelligence firm Profitero showed that Amazon.com makes more than 2.5 million price changes every day, compared with a little more than 50,000 total price changes made by brick-and-mortar retailers Walmart and Best Buy throughout November.
Profitero’s analysis also revealed that Amazon.com has increased its number of daily price changes 10-fold during the last 12 months. At the beginning of December 2012, the online retailer implemented just 269,113 price changes.
The extent of Amazon.com’s daily price changes is even more significant when compared with the number of daily price changes implemented by brick-and-mortar retailers Walmart and Best Buy. During November, Best Buy made a total of 52,956 price changes and Walmart a total of 54,633 price changes, highlighting the massive price advantage Amazon has over other retailers — and demonstrating why retailers need to monitor their online competitors’ prices every day to remain competitive on the market and avoid losing sales.
“It’s staggering that Amazon.com is making millions of price changes on a daily basis. The sheer scale of these price changes demonstrates why brick-and-mortar retailers need to be using an advanced online price intelligence solution if they want to compete with Amazon,” said Volodymyr Pigrukh, CEO and co-founder of Profitero. “Profitero predicts that the number of price changes is only going to increase as the retail landscape becomes more competitive, and so it’s impossible for any retailer to monitor this number of price changes manually. To understand where they stand against their competitors’ prices and avoid losing out on sales, retailers need to monitor Amazon’s prices on a daily basis. Profitero is the only online price intelligence solution in the marketplace which is capable of monitoring the prices of millions of products every day with the highest degree of accuracy.”
“Today’s hyper-competitive, omnichannel landscape compels retailers to incorporate all sources of competitive pricing data in their pricing and competitive positioning strategies,” said Rip Greenfield, SVP global alliances and business development at Revionics. “Incorporating Profitero’s competitive data with our price management and optimization solution ensures that retailers can systematically operationalize the use of this critical data to take actions that enhance both price image and profitability.”
Profitero works with more than 40 global retailers including Walmart-owned Sam’s Club, Staples, Tesco, Waitrose, Worten and Ocado and enable them to benchmark competitor prices, manage their prices and promotions, attract price sensitive shoppers and negotiate better with suppliers. Profitero collaborates with leading price optimization providers, including Revionics, IBM DemandTec and Blue Yonder. Profitero is also in a strategic alliance with Nielsen as the preferred supplier of online competitor pricing data to their retail clients.