Welcome to WebmasterWorld Guest from 34.204.191.31

Forum Moderators: open

Variable prices are crazy-making

Price jumps all over the place

     
4:13 pm on Jun 15, 2019 (gmt 0)

Moderator

WebmasterWorld Administrator buckworks is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month

joined:Dec 9, 2001
posts: 5836
votes: 161


Earlier this week I ordered a pair of shoes from Amazon.ca for $28.45, a great price. There were two pairs left. I thought about buying both, as my size is sometimes hard to find, but I didn't. I bought one pair and added some sewing tools so the order would qualify for free shipping. So far, so good.

Later I started having regrets. I should have ordered both pairs. I wonder if the last pair is still available.

It was and is, but the price has gone up. As I type this it's $122.93.

Same seller, same shoe, same size, same color ... but quadruple the price since Wednesday?

Sigh ...
6:29 pm on June 15, 2019 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month

joined:June 20, 2006
posts:2164
votes: 92


If it's data-driven arbitrage at Amazon, it makes total sense (to do).
If it's a store trying to build a brand, it's biz suicide.
6:39 pm on June 15, 2019 (gmt 0)

Administrator from US 

WebmasterWorld Administrator not2easy is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month

joined:Dec 27, 2006
posts:4508
votes: 347


That's incredible, but I've seen it too - although with smaller gaps.

Since there were only two pair left, they needed to reorder and wanted to get their ROI off the first few pairs sold?
7:17 pm on June 15, 2019 (gmt 0)

Moderator

WebmasterWorld Administrator buckworks is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month

joined:Dec 9, 2001
posts: 5836
votes: 161


If it's data-driven arbitrage at Amazon, it makes total sense (to do).


Please say more about that. Help me understand better than I do.

The seller was Amazon.ca itself, it wasn't fulfilling for another merchant.
6:31 am on June 16, 2019 (gmt 0)

Senior Member from US 

WebmasterWorld Senior Member tangor is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month

joined:Nov 29, 2005
posts:10456
votes: 1091


These things are often simple errors in setting up the product entry ... chit happens. A takes the loss for the error (as sold) and makes the correction thereafter ...
9:20 am on June 16, 2019 (gmt 0)

Administrator from GB 

WebmasterWorld Administrator engine is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month

joined:May 9, 2000
posts:26367
votes: 1034


That's an incrddible difference.
I've seen a number of items at ludicrous pricing, and I wonder if it's a genuine error.
1:46 pm on June 16, 2019 (gmt 0)

Senior Member from US 

WebmasterWorld Senior Member ken_b is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month

joined:Oct 5, 2001
posts:5893
votes: 120


I just got home from a 4 week road trip and experience this "variable pricing" on hotels. it's nuts!

Often if the first night was $150.00 the second night was $200.00 or MORE!

In one case I'd stayed at a hotel and on my return trip 2 weeks later the rate doubled for the first nith and was worse for the second. Those were mid-week rates, not holiday or special event..

The hotels assured me they had no control over this, it was all computer driven from the central reservation system.

However I did find that they could adjust the rate down on checkout if there was a "good enough" reason. Not hard to find when the house keeping was so bad we had to change rooms or the TV didn't work or the plumbing leaked in the room above us, etc, etc. etc.

I took to telling these mid-range (priced) places they'd make a great Motel 6, at a motel 6 rate..
6:06 pm on June 16, 2019 (gmt 0)

Administrator from GB 

WebmasterWorld Administrator engine is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month

joined:May 9, 2000
posts:26367
votes: 1034


That's crazy, ken_b, time to stay at family owned businesses, eh!
11:17 pm on June 16, 2019 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month

joined:June 20, 2006
posts:2164
votes: 92


Supply and Demand... if you're the only seller with the item, up go your prices. The marginal profit difference might take, in this example, a $5 profit and turn it into $136... like selling 27 pairs at the usual price. Their are often high costs and risks to holding inventory nobody else has, the rewards (imo) should be high as well. PS, this is not a biz model I practice, it is not steady and reliable, nor is it easily scaled.
3:32 am on June 27, 2019 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month

joined:July 29, 2007
posts:2014
votes: 215


When selling on Amazon you don't want to run out of the product because if Amazon was featuring your page before they won't be moving forward. By raising the price you can maintain your place within their link structure so to speak, at least long enough to restock. It's better to raise the price by a large amount on the last unit than to sell out or you have to start all over and rebuild your exposure level. Ideally the last unit doesn't sell until you restock, you don't need "too expensive" reviews.

You should have bought both.