Executive Briefings

Walmart, Amazon Duke It Out on Price Optimization

Price optimization is the next frontier on the retail battle lines, with Walmart and Amazon waging a fierce battle to best each other on price. It's a fight that Amazon is winning thanks to its pricing strategy, according to the Price Perception Index (PPI) for digital retail.

Walmart, Amazon Duke It Out on Price Optimization

The index, created by Boomerang Commerce, measures how retailers optimize prices to attract buyers, compete with other retailers and build their business on a mix of profit margins and volume. The inaugural report found that Amazon is consistently undercutting Walmart's online prices.

Amazon was priced 4 percent lower on the most popular products, while Walmart is following a price-matching policy with 63 percent of its products at the same price as Amazon's. Additionally, Amazon has a sophisticated pricing strategy to own a majority of the SKUs for the most popular items and undercut third-party resellers on those products.

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The index, created by Boomerang Commerce, measures how retailers optimize prices to attract buyers, compete with other retailers and build their business on a mix of profit margins and volume. The inaugural report found that Amazon is consistently undercutting Walmart's online prices.

Amazon was priced 4 percent lower on the most popular products, while Walmart is following a price-matching policy with 63 percent of its products at the same price as Amazon's. Additionally, Amazon has a sophisticated pricing strategy to own a majority of the SKUs for the most popular items and undercut third-party resellers on those products.

Read Full Article

Walmart, Amazon Duke It Out on Price Optimization