Ángela de la Vieja
Amazon is one of the online companies which is more worried about keeping its prices competitive. Its powerful algorithm determines daily what´s the best selling price with which to maximize benefits, taking into account its costs and its main competitors´ prices.
December the 24th is one of the days with greater number of internet purchases in Amazon. Being aware of this point, Amazon got the best out of its pricing algorithm. Last Christmas a team carried out an experiment to determine to which extent Amazon was worried about being price oriented. The results are pretty clear: from the 7.000 electronic products monitored, over 25% had a price change between December the 24tha and the 25th, being this the record of price change in a month.
What did Amazon exactly do during those dates? Taking advantage of the great purchases demand during Christmas day, Amazon increased its prices 4.88%, movement that increased its benefits considerably.
This is a clear example to demonstrate that using a pricing tool will allow us to take advantage of real big marketing opportunities, maximizing our benefits taking into account offer and the demand.
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