A Second Report Labels Amazon Pricing Expensive
A second report has come out claiming that Amazon pricing is “not cheaper” than mass retailers, the report has been released as Amazon slams an earlier report from Wikibuy who claimed that the big online retailer was 11% more expensive.
Student financing site LendEDU compared a 38-item basket of identical products in a one-to-one price match competition on Nov. 13, using the lowest available price on Amazon given its choice of direct and third-party sales. Categories included tech, appliances, food and beverage, and miscellaneous apparel and household goods.
“Once and for all, we wanted to squash the great debate: Does Costco or Amazon save the consumer more money?” explained LendEDU research analyst Mike Brown. His finding: the total ticket was 12.1 percent higher when ordering the items on Amazon than by purchasing them at a Costco store.
The move by research groups to disprove Amazon claims has upset to online retailer who claims the Wikibuy report that ChannelNews reported on last week was “deeply flawed and misleading.”
In an email an Amazon spokesperson noted that “Customers come to Amazon to find low prices and great deals throughout the holiday season, and we continue to offer customers thousands of incredible deals on top products for their holiday shopping needs.”
The Wikibuy research that was based on a nine-month study, revealed that Amazon’s prices were 11 percent higher on average than those at other e-commerce sites represented by Wikibuy, after factoring in incentives, cashback credits and rewards points.
TVs, a core product category for CE and general merchandise retailers, showed the greatest disparity, with Amazon’s prices higher by 20 percent on average, Wikibuy said.
Amazon added that “In addition to low prices, we offer customers a vast selection, and more than 100 million items that are eligible for free shipping to all customers, every day.”
Wikibuy, however, stands by its study. “Our research is based on prices Wikibuyers discover and take advantage of every day,” the company responded in a statement. “Price histories, dating back months, are all available on Wikibuy for all products tracked in our index.”