News

Start-up targets Amazon with pricing service benefitting retailers, consumers

Price service aims to connect local retailers with Amazon Prime members who want the cheapest price while supporting nearby stores.

November 19, 2015

Newcomer online retail start-up Jet isn’t the only one aiming to break Amazon’s domination of all things ecommerce.

Now comes news of a free online service called PriceLocal aimed at getting the lowest product price on anything sold by Amazon under its Prime membership service and it’s being spearheaded by a former Borders bookstore chief who has watched firsthand how Amazon stormed and conquered the online retail space.

"Amazon is a juggernaut that impacts the ability of local retailers of all sizes to compete, while consumers have the perception that shopping locally will be more expensive," said PriceLocal Founder Matt Chosid, in an announcement regarding his new business enterprise.

"PriceLocal is a win-win for shoppers and retailers. Shoppers can find and get something right away at a fair price while supporting the local economy. And local retailers can level the playing field with Amazon by turning local online traffic into increased sales and foot traffic."

The service promises to be a boon for both retailers and consumers seeking the best product price. Shoppers browse Amazon and if the product they seek is offered as a Prime product PriceLocal then helps connect the shopper and a retailer, offering the product at a better price point. It will also appeal to consumers who want to shop local but buy online given lower prices.

"By helping shoppers find the products they want at a local store willing to match the Amazon price, PriceLocal turns the corrosive 'showrooming' trend on its head and drives consumers back into local stores, where retailers can capitalize on their strengths — providing great service and putting products in shoppers' hands today, Chosid said.

Retailers just need to sign up for the program to begin receiving Amazon Prime price match requests from shoppers.

To avoid any confusion over comparing prices with and without shipping charges, PriceLocal works with Amazon Prime products only, where the shipping charge is "free." Neither retailers nor shoppers need to be members of Amazon Prime to use PriceLocal.

The service was initially piloted last year in Michigan and Minneapolis, and while PriceLocal would not provide Retail Customer Experience with specific data on consumer and retailer participation a spokesperson said thousands of consumers did use PriceLocal and that the feedback was very responsible.

"As former Borders employees, we saw firsthand what the Internet can do to a bricks-and-mortar retailer — kill it. That experience inspired an idea. Instead of browsing in a local store and buying online, PriceLocal lets you shop online and get exactly what you want from a local store at the Amazon price! How cool is that?" states the PriceLocal website. "PriceLocal's intent is to drive a local store visit by a shopper who will likely purchase more than just the single, price matched item and who was previously going to make their purchases elsewhere."

The service is not yet available in a mobile environment but there are plans to develop a mobile app, stated PriceLocal.

In related news, Amazon obviously is not banking on Black Friday or even Thanksgiving when it comes to luring in consumers seeking the best deal on holiday gift shopping this season.

The online giant is kicking off 'Black Friday' deals days earlier — Nov. 20 — to be exact and doing an 'every-five-minutes' deal for eight straight days, according to an announcement. It's set up a dedicated website for the sales promotion and is also prepping a "10 coveted Deals of the Day" starting at midnight on Thanksgiving.

In addition Amazon said it will hand pick 150 so-called Lightning Deals just for its shopping app during the Black Friday sales period.

The etailer said holiday sales from its mobile app doubled last year, according to a MarketWatch announcement.