Tag Archives: E-tailers

The Logic Behind E-Tailers’ Mercurial Pricing – HBR

Hey guys, did you know this?   I can say as a consumer I was aware but this article is really a heads up that is far beyond my awareness.  As an retailer, are you matching your competitors in taking advantage offered with the internet marketplace?  Recommended read from either consumer or retailer side of the fence!

 Excerpt:  The Wall Street Journal recently broke a story which revealed two surprises about the pricing practices of Internet retailers: Prices change often and widely. The Wall Street Journal highlighted, for example, the range of prices for a GE microwave. In one day, sellers on Amazon.com changed their prices nine times, resulting in prices fluctuating between $744.46 and $871.49. During that same period, rival Best Buy raised its price on the same kitchen appliance to $899.99 and then later dropped it to $809.99.

So what’s going on here?

Internet retailers have discovered that the web is a perfect setting to optimize prices. It is almost costless for e-tailers to change prices, and it’s equally easy to measure customer reactions. Given this fertile price-changing environment, Internet retailers are varying prices for 5 key reasons:

Read full article via The Logic Behind E-Tailers’ Mercurial Pricing – Rafi Mohammed – Harvard Business Review.

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