What's behind Amazon's powerful pricing strategy on Prime Day? - FH International

What’s behind Amazon’s powerful pricing strategy on Prime Day?

Posted in July 26, 2018 by tfagundes

On July 21, Emilio Osete participated in an interview for Vozpópuli about the exclusive event for Premium clients organized by Amazon, Prime Day.

Prime Day is the most important day for Amazon Premium customers, a day with unique offers for customers at Amazon and that has been shaking the E-Commerce market for years. Some voices, however, criticize the “game” of prices that is carried out not only during the Prime Day, but also before and after the event.

Emilio Osete Managing Director of FH for Europe, points out that the price fluctuation is not exclusive on the date of the Amazon Prime Day. “Amazon can fluctuate the prices of its products several times a day, which is why there are numerous tools on the market that are called ‘Tracer’ that allow a buyer to compare the price of a product currently with the one that had hours, days or weeks ago“, he says.

Says that “Many retailers respond to Amazon with their own special offers, but the reality is that Amazon uses in a unique way all its arsenal of products and means to try to redirect their potential buyers.”

Emilio explains that Amazon’s strategy for this day evolves continuously, this year for example increased the price of “Lighting Deals” (previous exclusive offers), forcing some brands to focus on selling the most successful products “It wants to promote ‘habits’ of buying products that its buyers like, even sacrificing their margin.”

Behind all these strategies there is a clear objective, which is part of their ‘DNA’ and on which Amazon has always focused its strategy and has become the leader today: “The goal is always the same: to modify the behavior of the long-term buyer“, he concludes.