News

Most retailers worry about Amazon pricing threat

August 14, 2019

Nearly three-quarters of retailers are worried they're going to be outpriced by Amazon, with 41% of those "very concerned."

But Amazon isn't the only pricing competitor on the mind. Nearly half, 49%, are worried about other brick-and-mortar pricing, according to a ActiveViam study that polled more than 500 senior pricing decision makers.

The study also revealed 61% are worried they won't be able to adapt and optimizing pricing in response, according to a press release on the findings.

"It is no surprise traditional retailers are worried about being outpriced by Amazon," said Kathy Perrotte, managing director and co-founder, at ActiveViam, in the release "From its wealth of customer data to its vast product offerings, Amazon is able to fluctuate their prices very intelligently and very quickly."

More than half polled, 55%, are concerned that their own internal pricing data, such as geo-pricing and price consistency data, is either inaccurate or incomplete and 54% are worried external competitor pricing data they are using for pricing models is either incomplete or inaccurate.

"Data quality is of paramount importance to winning on price," said Perrotte, in the release. "The fact that so many retailers are not only worried about their external data quality but their internal data quality is quite alarming. Retailers really need to think about the infrastructure they have in place and invest in better tools and strategies to ensure they have the best quality data possible."