Amazon : Caveat Emptor

Turns out the Amazon relies on the same tricks that physical retails use, only more sophisticated.  They lure you in with cheap prices on some items and charge you more on others.  Re/Code reports the following:

Amazon is known for having low prices. But a study conducted by a startup calledBoomerang Commerce reveals that Amazon’s pricing strategy is much more nuanced than simply undercutting the competition.

Boomerang, founded by Amazon veteran Guru Hariharan, makes software that tracks prices on shopping sites that compete with its clients, then recommends price changes dynamically. Those changes are based on rules its clients set about which products to match prices on and which to boost higher or drop lower than a competitor’s to boost profits or sales, respectively.

The study of Amazon’s pricing uncovered some interesting tactics. First, Amazon doesn’t have the lowest prices across the board, which may not surprise industry insiders but might surprise Amazon shoppers.

Read the full article here.

Bottom line:  if you are looking to save money do your research.  Do not assume that Amazon always has the lowest prices.

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