Amazon Quietly Eliminating List Prices
In a major shift for e-commerce, Amazon.com is quietly changing how it entices people to buy. The retailer built a reputation and hit $100 billion in annual revenue by offering deals. The first thing a visitor saw was a bargain: how much an item was reduced from its list price. Now, in many cases, Amazon has dropped any mention of a list price. There's just one price. Take it or leave it.
Total Retail's Take: Pricing transparency has been a hot topic of late, with many lawsuits sprouting up over the value of stores’ (offline and online) so-called discounts. Amazon's solution: remove the list price altogether so consumers are blind to the fact of whether they're getting a good deal or not. The retailer has built such a massive audience — and continues to attract more shoppers with its Prime program — and is betting that those loyal customers have become conditioned to expect that they're getting a good deal when purchasing from Amazon, and therefore don't have to look elsewhere for the same or similar product. It's a risk, but likely to pay off — much like everything else Amazon seems to try.
Joe Keenan is the executive editor of Total Retail. Joe has more than 10 years experience covering the retail industry, and enjoys profiling innovative companies and people in the space.