Amazon has built their business around a highly sophisticated data-focused retail model, and no products get more of their attention than their best sellers.
(PRWEB) November 19, 2015
Ottawa, Canada: 360pi, the leader in product intelligence, today released the latest report in its Holiday Insights Series. Holiday Success: Amazon Relying on a Data-Powered Holiday, takes a close look at Amazon's pricing strategy for its best sellers this holiday season, providing insight into Amazon's 2015 holiday tactics. The report is based on a sample of over 8,800 items from Amazon's best seller listings for available products only, with price comparisons in early November.
A few of the many trends observed in 360pi's report include:
- Amazon's top two price dynamic categories: Amazon repriced 55% of their best-selling office/school products and 45% of their best-selling toys/games from one day to the next
One key Amazon trend for holiday 2015 is an unprecedented level of price dynamism on best-selling items, with some products repriced far more than others. Between Nov. 11 and 12, Amazon repriced nearly half of its best-selling products in toys and games, and, surprisingly, more than half of the best-sellers in office and school supplies. Other categories that saw a high level of price dynamism were electronics and clothing - both highly contested gift categories.
“Amazon's price dynamism on its best-selling products is particularly interesting in comparison to the retailer's typical level of price dynamism. For example, we recently reported that 17% of the larger toys category was repriced daily, which is only a fraction of the dynamism we've observed for their best-selling toys,” said Jenn Markey, VP Marketing, 360pi.
- Best-selling toys have an average of 80 marketplace sellers for each product, with Amazon proper still the only seller on 4% of them
This highly price-dynamic category also has the highest average number of marketplace sellers offering each product. With just a few national brands and character licenses dominating the best sellers in toys, this is one of the most aggressively competitive categories. However, Amazon is still able to offer a number of exclusive items in the popular lines.
“Amazon has built their business around a highly sophisticated data-focused retail model, and no products get more of their attention than their best sellers,” said Markey. “The observed correlation between the number of marketplace sellers and Amazon's price dynamism for their best-selling toys, provides additional insight into the ecommerce giant's tactics and strategies during the holidays and beyond.”
Holiday Success: Amazon Relying on a Data-Powered Holiday is part of 360pi's third annual, award-winning Holiday Insights report series, featuring a Holiday Count-Down Calendar, a must-have for every retailer and brand this holiday season. Subscribers to the program receive holiday product and pricing trend reports, pre- and post-holiday analysis webcasts, and Top 100 Most-Wished-For Toys and Electronics summaries, among other category insights. These insights cover the strategies and tactics for a number of major retailers, including but not limited to, Amazon, Walmart, and Target, over the course of the holiday season. For more information about how 360pi's product and pricing solutions can help retailers and brands win this holiday season, please contact 360pi here.
360pi derives profitable insights from product and pricing big data to help leading omnichannel retailers, etailers, and brand manufacturers compete and win with shoppers. 360pi's customer base accounts for over $US200 billion in annual product sales and includes Ace Hardware, Build.com, and Overstock.com, along with several Fortune 500 consumer products companies. With the majority of in-store purchases being influenced online, 360pi helps retailers and brands successfully navigate the multi-channel landscape with real-time insight into who is selling what, where, when, and for how much. Ultimately, 360pi customers make smarter decisions faster to drive increased revenues and margins across all channels.