Amazon leads online retail ‘price war’ – WWD
In its fifth annual “Price Wars” e-commerce study, researchers at analytics firm Profitero found that Amazon was the price leader for fashion clothing. The results come from an analysis of over 15,000 products in 15 categories from 12 leading online merchants.
Overall, Profitero found “Amazon was the cheapest on average by 14%, beating 11 of 12 retailers surveyed in each category, but Walmart and others are not far behind,” the company said.
In fashion clothing, the analysis found that Amazon prices were on average 16% cheaper. “Walmart was the only retailer to successfully close the price gap with Amazon, falling 5 percentage points from our 2020 survey. Macy’s, meanwhile, saw the gap widen by 18 points. percentage, ”the company said.
The study showed that Nordstrom was on average 7% more expensive than the same products on Amazon, which is an increase from 5% in last year’s report, while Target was 12% more expensive than the same ones. products on Amazon, which is a slight increase of 11 percent in the previous study. Macy’s was 31% more expensive than the same products on Amazon, which Profitero said reflects “a massive increase” from 13% last year.
The report’s authors said supply shortages and rising manufacturing and shipping costs “are having a big effect on prices. Our latest ecommerce price index shows that online retailer prices rose again in October 2021 and increased 5.5% year over year.
“What this means is that consumers are going to have to work hard this coming holiday season not only to find retailers with products in stock, but also the best prices, as there is little incentive for retailers to discount. too large with such high demand and little supply on hand, ”the company said.
Across all categories, the report states that the only retailer “that currently matches Amazon on price is Chewy, in pet.” But other competing retailers have narrowed the price gap to Amazon in 8 of the 15 consumer product categories featured in this study, with the biggest threat coming from Walmart.
The report notes that Walmart Inc. “is giving Amazon a run for its money, closing the price gap in 10 of 15 categories from where it was a year ago.” Research found that Walmart’s prices are within 4% of Amazon’s across all categories, down 1 percentage point from last year’s study. “Prices at Walmart were found to be within 5% or less of Amazon in 13 of the 15 categories studied,” the report said.
Profitero also found that Target’s prices are, on average, 15% more expensive than Amazon’s across all categories studied, which is an increase of 2 percentage points from the previous study. “Notably, Target’s prices are more expensive, on average, than Amazon in many general merchandise categories, as well as in beauty, this year compared to last year,” the report notes.
Product comparisons were made between retailers on the same day, and the company said in the report that the items “matched exactly. Profitero’s methodology is to compare online prices between retailers only on identical items (same UPC, brand and pack configuration).