Amazon reportedly used a secret algorithm to jack up prices — A new report details Amazon’s Project Nessie pricing algorithm::Amazon deployed a secret algorithm to gauge how high it could raise prices before its competitors stopped increasing their prices as well.
A “secret” algorithm. Unlike all those other companies that just publish their proprietary algorithms on the net for anyone to try and game.
My poor eyes are exhausted from all the rolling.
Use Keepa or CamelCamelCamel to see the price history of the item you want to buy.
in Slovakia there is an aggregator site where stores can publish the stuff they are selling and the price it automatically keeps track.
well the smartwatch I have despite being in Slovakia shut up to 250 euros a month before Black Friday, then magically was many percentages off for 150.
of course the aggregator site showed that it was 150 for the whole year other than that “random” jump before black Friday
edit: found a screenshot, side-by-side with a store that’s not listed on the aggregator:
Not sure if it’s just me but when looking at that in chrome on my phone the picture looks quite blurry and it’s hard to make out much. Doesn’t help that there doesn’t seem to be a way to full screen it.
Load the page on desktop mode then click on the image. imgr is owned by reddit, so it’s been fully enshitified as well.
Thanks. Worked perfectly.
It’s exactly the same case for me.
Amazon owns camelcamelcamel
This is news? I know that gas stations specifically have been doing it forever.
Surely every company makes decisions on how best to increase income, that’s a pretty significant part of being a business.
Right? Amazon’s monopoly is definitely a problem but this part feels pretty par for course. Finding the sweet spot between price/competition/demand is like business fundamentals 101. I can assure you this is something all major retailers consider. There are also many analytics companies with their own “secret” algorithms (this probably just means proprietary?) focused on things things like pricing elasticity and optimization and are targeted to these retailers.
while(amazon_price < GetCompetitorPrice()) { amazon_price += 1; Sleep(kOneHour); }; our_price = GetCompetitorPrice() - 1;”SeCrEt AlGoRiThM!!!1” - The Verge
Oh man, you have some serious AI here!
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You should check out CamelCamelCamel or Keepa, it has Amazon price history.
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The 3xCamel works for all these: UK, Germany, France, Italy, Spain, Australia, Canada and US. Sometimes the prices differ for the same products across the EU country versions, so it can be worth comparing them before buying in/from EU.
wow they will make money helping consumerz for now
There is an extention and phone app called Keepa that tracks prices and shows you their price history right on the product page on Amazon so you can see if you are getting a good deal.
There is still massive price manipulation on amazon which is why I don’t have a prime account for home or anything on “subscribe and save” any more.
“Subscribe and save” is a scam.
They advertise that you will save 5% by using subscribe and save, but then the price of the item you are buying just happens to go up by 30% on the day they decide to use as the basis for your order, which is not the day you ordered it or the day they pulled it off the shelf. It will occasionally go back down to a normal-ish price, but there will also be random months where it goes up 50% or 100%. I’ve seen $15 case of paper towels go up to $45 some months.
Then they keep prodding you to add more items to get 10% off your entire subscribe and save. I added some items a few weeks ago, got the extra discount percentage, but when they priced my order a few weeks later, the cat food I’ve been getting from them at a pretty stable price suddenly went up in price by the exact amount the extra discount was saving me.
Amazon essentially took the “four square” concept that car dealers use to shift higher costs to an area of the transaction where you are less likely to notice it.
The subscribe and save price reflects the listing price at the time your order is fulfilled.
As a seller, the number of subscriptions evaporates if I increase the price on an item.
What you are describing is not a tactic any business is intentionally employing. It’s more likely born of incompetence.
That may be the case, but I have to admit, assuming malice is a lot more fun!
Cunts
Well yeah, did you think your landlords were the first to use such algos?
“Ooooh, unexpected”
Target sells cheap, no-name garbage products too?
This is not evidence of a monopoly.
This tactic would only impact Amazon owned listings, which account for a minority of the listings on Amazon.
Amazon does not change prices for listings controlled by third party sellers.
What’s funny to me is that Amazon has a competitive price match policy, where they will hide offers for listings that are priced above other retailers. So the FTC’s argument is that Amazon is trying to drive prices up while also driving prices down.
Isn’t the competitive price match policy a symptom of their monopolistic domination?
Amazon uses its vertically integrated distribution to provide faster shipping. But their marketplace has a higher cut (
5% iircEdit: 15% average). The price match prevents sellers from adjusting Amazon listings to compensate for those fees, forcing the decision to (a) sell at lower margin on Amazon, (b) don’t sell on Amazon, or ©, raise the price across all marketplaces to maintain margin.Rather than holding Amazon prices down, it pulls prices on other marketplaces up. It’s an abuse of the inertia of a large customer base to prevent competition by other marketplaces on the basis of a different blend of cost and delivery service.
In my experience, Amazon takes a lower cut than retail chains. In fact, Amazon is less expensive than DTC when you factor in advertising costs. In all likelihood, it is not causing anyone to drive up their prices off Amazon.
I work with many many brands. I have seen several turn off their DTC channels because customer acquisition costs are simply too high.
The competitive price match policy is a nuisance when retailers liquidate inventory for pennies in the dollar.
I am shocked that business changed prices to meet demand. SHOCKED!
