How Amazon Tricks You Into Thinking it Always Has the Lowest Prices
Amazon.com is known for having low prices. However, a study conducted by a startup called Boomerang Commerce reveals that Amazon's pricing strategy is much more nuanced than simply undercutting the competition. Boomerang, founded by Amazon veteran Guru Hariharan, makes software that tracks prices on shopping sites that compete with its clients, then recommends price changes dynamically. Those changes are based on rules its clients set about which products to match prices on and which to boost higher or drop lower than a competitor's to boost profits or sales, respectively.