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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