New Study Details Online Retail Price War
Walmart is gaining ground on Amazon.com when it comes to offering the lowest retail prices on the internet, according to a new report from ecommerce intelligence firm Profitero, which says that the big-box retailer cut its pricing gap with the internet retail giant from nine percent to three percent between 2014 and 2017
The report, "Price Wars: A Study of Online Price Competitiveness," analyzed the pricing of more than 50,000 items across a number of product categories—including pet supplies—at Amazon.com, Walmart.com, Jet.com, Target.com over a three month period (June to August 2017). The study also included leading online specialty retailers within major product categories (in the case of pet supplies, that was Chewy.com). On average, Amazon turned out to be 11 percent less expensive than the other online outlets. However, there were variations, between retailers and product categories. For example, while Walmart was closest to Amazon on price (+2.9%), Target was the furthest away (+16.9%).
When it came to the pet care category, specifically, the disparity between Amazon's competitors was even more pronounced. While Walmart's pricing for pet products was even closer (+1.7%) in this category, Target proved nearly 20 percent more expensive. Unsurprisingly, pricing on Chewy.com (+7% vs Amazon) was the lowest among the online specialty retailers included in the study.
For more insights from the Profitero study, retailers can download a free copy of the report.