One of the most looked after factors by retailers is the perception of economic prices. The objective is to make the consumer presuppose competitive prices and to shop without having to continuously compare prices. This perception may just be an impression if we contrast it with objective data. Who is cheaper, Amazon or Fnac? Below, we will show you a price analysis done on technology articles.
On the the April 2017, we performed a random sample of 1,338 products in stock for the technology sector that the ecommerce Fnac and Amazon share. In this assortment selection we can find products from photography, sound, gaming, telephone and computing, among others. We proceed to calculate the price indices between both companies, obtaining a difference of 14.05% in favour of Amazon, in other words, out of 1388 products; Fnac was on average 14.05% dearer than its competitor Amazon. This is a noticeable difference, as in the technology sector the competition is very aggressive and it is quite strange to find differences above 5%. Remembering our last study from Christmas 2016, the difference between Amazon and Pc Componentes was only 1.41% in favour of the Spanish company.
If we also calculate the difference in price, we can determine the percentage of occasions when a company is cheaper, the same or dearer, and the results for this grow up to 80.41% of the times that Amazon is cheaper, only 14.12% they are the same, and just 5.45% of the times Amazon is dearer than Fnac. This result only confirms the importance of Amazon by disposing of the best price in the maximum number of possible products so as to transmit to their clients the image of the cheapest prices as we have been able to see in their latest TV adverts.
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