Commentary

Amazon Driving Wedge Between Performance, Price Competition

Electronics is one of the hottest product categories during the holidays. Amazon has the lowest prices of any online or brick-and-mortar retailer in the category, according to data released Wednesday.

In fact, no retailer studied beat Amazon on price in Electronics during the period studied from July to September 2019.

Profitero’s report analyzed daily prices on 12,500 products across 19 retailers. The study found Amazon’s prices came in about 20% lower on average than other online retailers. In fact, Amazon had the lowest prices on the broadest selection of popular items, winning in all categories analyzed.

When it came to the Electronics category, Walmart was the closest to Amazon pricing.

Walmart.com came in as the next most competitive among the retailers studied, with prices averaging 4.1% higher than Amazon’s. The price gaps between Amazon versus Target.com and Jet.com were more substantial, at 10.6% and 11.3% higher, respectively.

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Although Amazon beat all retailers studied on price, it continues to face tough competition in many categories. Walmart.com narrowly trailed Amazon in Baby items at 2%, Pet Supplies at 1.3%, and Toys & Games at 1.7%.

Chewy.com provides some tough competition in Pet Supplies, trailing Amazon by just 4% in price. Jet.com is most competitive in Office Supplies, trailing by only 6%.

When it comes to social media ads, the findings suggest that 41% of consumers would not purchase gifts, with 24% saying they would only consider purchasing from shoppable Instagram or Facebook ads if they receive a discount or are from a retailer they trust.

Profitero, an ecommerce performance analytics platform, works with companies such as Bayer, Beiersdorf, Dorel Juvenile, Edgewell, and General Mills, and also analyzed specialty retailers selling electronics, office supplies and sports.

Best Buy, Staples, and Dick’s Sporting Goods were found greatly overpriced compared with Amazon. Staples, for example, was 31.5% more expensive than Amazon in electronics.

In Vitamins and Supplements, the pharmacy CVS was 64.5% more expensive and Walgreens was about 60.9% more expensive compared with Amazon.

 

 

 

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