With Amazon becoming ever more dominant, it’s essential that retailers are constantly monitoring their online competitors’ prices to ensure they price right and avoid losing out on sales.
London (PRWEB UK) 19 November 2013
Profitero, the leading global provider of online competitor pricing data, reveals that web giant Amazon has increased the number of daily price changes on Amazon.co.uk by more than eight-fold over the last six months, clearly demonstrating why retailers need to be monitoring their online competitors’ prices every day in order to deliver the most competitive price on the market.
The Profitero price analysis was based on more than 18 million products on Amazon.co.uk, and conducted over a six month daily period between April and October 2013. The findings show that Amazon UK implemented just over 50,000 price changes at the beginning of May, before peaking at more than 415,000 price changes by the middle of October.
Profitero further examined the number of daily price changes in three of Amazon’s key categories - Electronics, DIY and Health & Beauty - and discovered:
- Within the Electronics category, which covers 12.8 million SKUs, the number of daily price changes has increased from 147,000 products in May to 1.74 million products in October, a staggering 1183% increase and representing 13.6% of Amazon’s overall Electronics inventory.
- The DIY category, covering 1.3 million SKUs, saw Amazon increase the number of daily price changes from just 1,500 in May to peak at 189,550 products six months later, or 14.5% of the overall category.
- The Health and Beauty category, which includes 900,000 SKUs, is the most price competitive category, with more than one in five products seeing daily price changes in October – reaching a high of 190,683 price changes by the middle of the month.
Commenting on the findings, Volodymyr Pigrukh, CEO and co-founder of Profitero, said: “Whilst retailers increasingly recognise the threat from Amazon, they need to understand the importance of delivering the most competitive price on the market to appeal to today’s price-conscious consumer. Amazon UK has implemented eight times the number of daily price changes since May, and is now changing the prices of more than 400,000 products every day. With Amazon becoming ever more dominant, it’s essential that retailers are constantly monitoring their online competitors’ prices to ensure they price right and avoid losing out on sales. We predict that the number of price changes is only going to increase and so for retailers to seriously compete with Amazon, they need to be prepared for this and to monitor Amazon prices on a daily basis using an advanced price intelligence solution such as Profitero.”
To find out more about Profitero and discover how we help retailers make faster and smarter decisions, download our White Paper: "Five Reasons Why Every Retailer Needs to Monitor Their Online Competitors' Prices".
Profitero is the leading global provider of online competitor pricing data. We enable retailers to make faster and smarter pricing decisions by delivering their competitors’ prices, promotions and full product assortments to them every day. Profitero works with more than 40 global retailers including Walmart-owned Sam’s Club, Staples, Tesco, Waitrose, Worten and Ocado who use us to:
- Benchmark competitor prices;
- Manage their prices and promotions;
- Attract price sensitive shoppers;
- Negotiate better with suppliers.
Profitero collaborates with leading price optimization providers including Revionics, IBM DemandTec and Blue Yonder, with Profitero's competitor pricing data integrated directly into these solutions to provide more accurate and effective price optimization. Profitero is also in a strategic alliance with Nielsen as the preferred supplier of online competitor pricing data to their retail clients.
For more information on how Profitero can help make your pricing smarter, email sales(at)profitero(dot)com or visit http://www.profitero.com.