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A Comprehensive Breakdown of Amazon Price Wars

Uncover the intricacies surrounding price wars on Amazon and how you can navigate them and preserve your margins. By IT January 7, 2020
A Comprehensive Breakdown of Amazon Price Wars
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Today’s sellers and brands on Amazon know they need a competitive pricing strategy — among a slew of other key variables — to generate demand and increased sales velocity and, ultimately, win transactions. In fact, 51% of brands leverage competitive pricing as the most effective strategy for driving sales on Amazon. Moreover, 82% of consumers say price is a very important factor when selecting a product.

Stakeholders may seem to think that once they establish a pricing strategy that considers their competitors’ prices and changes in the market, they are taken care of and can “set it and forget it.” However, this is not the case. There is a factor that can have real business implications that many have not yet considered: price wars. 

Our team of Amazon experts has curated a playbook that includes a deep-dive analysis of all things related to price wars. Why do they begin? Who is typically involved? How can you prevent them? Are they dangerous to your business? We answer all of these questions and more and shed light on key statistics that you can use to inform your pricing methodology moving forward.

What Will You Discover in the Playbook?

  • A clear overview of what exactly a price war is and how it starts
  • Data-backed observations of price wars and their behaviors
  • The role pricing technology plays in the price war landscape
  • Strategies for navigating price wars on Amazon

Price wars, particularly if entered unknowingly, can shatter your profit margins and have a negative long-term business impact. While establishing a dynamic pricing strategy is imperative for any seller or brand on Amazon, it cannot be done in isolation. 

You need to have a comprehensive understanding of your competitive set, how they are repricing their products, and a plan in place to preserve your brand value and avoid price erosion. This playbook is inclusive of proven strategies to help you capture incremental sales while simultaneously protecting your brand equity. 

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