Well also remember that to win the “buy box” is also a competition amongst people who are just drop shipping similar items, sometimes by the pallet load, directly to Amazon warehouses and then based on margin basically doing a constant reverse auction to win the box the customer sees. Amazon also knows all this and will adjust its own competing stock/listings according to these changes as well. I have also heard that their prices are similar to Walmart and will vary based on estimated income of the customer. Have an iPhone or Mac and you are probably paying more than someone that shops on a cheap Android phone or no name PC.
Another interesting aspect of dynamic pricing is that it can lead to price discrimination, where different customers are charged different prices for the same product. This is because retailers can use customer data, such as location, browsing history, and purchase behavior, to tailor prices to individual customers.
I am very well aware of the automated pricing tools in Amazon. The accounts under my management will do over $3.5 million in sales this month. I will also manage almost $1 million in ad spend. I may be the only person in this comment section with a qualified opinion.
These tools cannot adjust price based on customer data. They can adjust pricing based on competitor prices, and based on how many units you are currently selling. That is all.
Well also remember that to win the “buy box” is also a competition amongst people who are just drop shipping similar items, sometimes by the pallet load, directly to Amazon warehouses and then based on margin basically doing a constant reverse auction to win the box the customer sees. Amazon also knows all this and will adjust its own competing stock/listings according to these changes as well. I have also heard that their prices are similar to Walmart and will vary based on estimated income of the customer. Have an iPhone or Mac and you are probably paying more than someone that shops on a cheap Android phone or no name PC.
Prices do not vary based on estimated income. Pricing control is not that granular.
This isn’t based on income, but here is the automatic price adjusting.
EDIT So, not 100% as granular, but not that far off.
Dynamic Pricing
I am very well aware of the automated pricing tools in Amazon. The accounts under my management will do over $3.5 million in sales this month. I will also manage almost $1 million in ad spend. I may be the only person in this comment section with a qualified opinion.
These tools cannot adjust price based on customer data. They can adjust pricing based on competitor prices, and based on how many units you are currently selling. That is all.