This was the price strategy of Amazon Prime Day

14/07/2017

Angela de la Vieja

Last Monday, July 10, Amazon began 30 hours of great discounts for its Prime customers. At Minderest, we wanted to analyse in detail the pricing strategy carried out by Amazon on one of its star days.

For the elaboration of this study a random sample of all the categories, with a volume close to one third of the products that were offered during the 11 of July was selected.

Starting the analysis with the type of assortment, the average price of the offers analysed was approximately € 79. On the other hand, if we calculate the average price on the previous price that these offers had, we get a figure close to 96 €, as to say, that the majority of the offers that Amazon marketed during the Prime Day were articles below the barrier of 100€.

If we calculate the discounts applied on each product in relation to the price of the offer and its previous price, we obtain an average discount of 18.5%. It is important to compare this figure with the discount that we would get if we make this same calculation with respect to the recommended price, since the discount rises significantly to 32.5%. The way in which Amazon showed the discounts to its customers was this second way, that is to say, with respect to the price recommended by the manufacturer, which has a greater attraction effect for the consumer because notably greater discounts are shown.

Regarding the magnitude of the offers, they compared the price of these with those that could be found by consumers on the 11th in the popular price comparator Google Shopping. Approximately 80% of Amazon's offers had the best price, with an average discount of 12% compared to the comparator. If we contrast these offers with the average price of Google Shopping, the data improves significantly, since Amazon had the best price on 90% of the occasions with an average discount of 22% over Google Shopping.

In conclusion, Amazon Prime Day managed to be the best offer 80% of the time, with an assortment around €100 and applying average discounts of 12% on the cheapest price on the market.

11/11/2022

Consumer behavior: How can behavior tracking be effective for setting the right pricing strategies?

Behavior tracking is becoming massively popular today. As a result, pricing strategies born from studying consumer behavior are a merchant's dream come true. If done right, it can conquer every market for the business quickly. With abundant data available, the strategic makeover of the pricing models is becoming easy for companies.

What is behavioral tracking, and how is the data beneficial in pricing?

For a quick understanding, behavioral tracking refers to gaining in-depth knowledge and insights into consumers through their web data. Their browsing habits, spontaneous decisions, shopping interests, and preferences come under behavioral tracking.

How can enterprises use customer behavior data?

Companies can use customer behavior data as a tool to strengthen their hold on the market. A customer’s preferences, values, and tendencies allow businesses to work in sync with them through the collected data. Apart from this, customer behavior can also aid in:

Tailoring customer needs for customer retention

Personalization is becoming the heart of a company’s growth. No matter in which area an enterprise is functioning, tailoring the services, products, and solutions is becoming increasingly crucial. Uniqueness and personalization attract the crowd like no other.

Increasing the overall value

One of the best ways customer behavior data affects a business is by upgrading the value of customers for the business. The customer’s characteristics allow the company to target the people that match the business prospects well.

Optimizing every type of content

Everything that is up for digital display requires content. You must have seen companies unveiling their products or services through advertisements and making the initial public appearance. Two essential sales strategies – upselling and cross-selling comes through content optimization.

Pricing Strategy

Last but certainly not least is the influence of customer behavior data on the pricing strategy. The pricing strategy essentially constitutes content derived from data analysis. Companies need to have a dynamic approach to the pricing system to attract the right customers.

17/02/2015

Saint Valentine’s Day, always a good opportunity

V-Day is looming, a long-awaited date for all and also a good occasion for the eCommerce. According the study conducted by Prosper Insights and Analytics, it is forecasted the average consumer expense that day will be the highest in last years. Furthermore, 25% of them will buy online, which means an increase of 4% regarding 2014 (The US department of Commerce). This is, therefore, a key date where market competitiveness increase and which could be assumed as a big opportunity for our business or, a big fail if we do not adopt the correct strategies.

How to turn this event into an opportunity? To achieve this goal, we need to adapt our prices to this hostile environment, i.e. we need to develop an appropriate Dynamic Pricing strategy that allows us to adapt our prices to the variations produced in supply and demand and to position us ahead of our competitors. In V-Day, the frequency in changes will be higher, carrying it out each hour or even each minute. It is estimated that 65% of leader retailers have the ability to respond quickly at these variations, such Amazon. For this reason, it acquires great importance the correct use of a software specialised in price motorisation of competitors. Do not miss the time and adapt your business to new adversities.

28/12/2022

Which are the best footwear marketplaces to sell on?

Footwear marketplaces are booming. The last decade has seen the launch of new specialized marketplaces with millions of different users. Among them are Spartoo, Sarenza and Farfetch, portals with international reach. Their main value is that they unite hundreds of footwear brands, as well as offering clothes and accessories. Although each has its own characteristics, they are all vertical marketplaces, i.e., they focus on a specific area, and their sales categories are interrelated. For sellers, these portals provide an opportunity to expand sales channels and drive the globalization of their e-commerce business. We explain how to sell on these footwear marketplaces so that you can assess whether they align with your plans for the future and then start defining a possible pricing strategy.