Are You Really Seeing the Best Price on Amazon?
Shoppers frequent Amazon every day, trusting the site's algorithms to show the best deals. But a recent Pro Publica report suggests that Amazon is becoming more biased, with its own products and "Fulfilled by Amazon" offerings being prioritized over those from other vendors — even if the other vendors have the cheapest price.
Amazon Prioritizes Itself and Paid Vendors on Product Pages
When buying an item on Amazon, most shoppers will purchase from the seller that's prioritized on the product page, rather than clicking to see what other vendors are charging. That means that shoppers are trusting Amazon to highlight the best price first.
But Pro Publica's report says that 94% of the time, Amazon prioritizes itself or vendors that pay for its services — and 75% of the time there were cheaper options available for other vendors. Shoppers who trust that the price in the buy box is the best price could be spending up to 20% more on their purchases than if they opted for the truly best price.
However, something to keep in mind with this study: The report factored in shipping costs for all items. Prime members and shoppers who reach the $49 minimum purchase generally don't pay shipping costs with Amazon items. If you're a Prime member then, it's unclear how often the top result is actually a more expensive option.
Refine Your Rankings and Factor in Shipping Costs
To avoid falling for the first, higher price, always click on the link to view additional vendors and prices. (You'll find the link in a box labeled "Other Sellers on Amazon" that appears below the "Add to Cart" box.) Then, rank the vendors by "price + shipping."
However, while this is Amazon's least biased way of ranking, it still gives preference to Amazon's own products and vendors. That's because Amazon products, and the companies that qualify as "Fulfilled by Amazon," are ranked by base price only; shipping costs are not factored in when comparing to the other vendors.
That's fine if you're a Prime shopper or expect to meet the minimum required to receive free shipping. But if you're not a Prime shopper, and you're nowhere near the $49 minimum, then this missing information can make it tedious to find the cheapest option. In that case, a shopper should take the Amazon option through checkout to find the delivery costs, and compare that to what other vendors offered.
Readers, have you found Amazon prioritizes its own items over those of third-party sellers? Let us know in the comments below!
The odassity you must possess to try to run a successful business and not promote your competitor's services over your own.
I mean, seriously, who do you think you are by only allowing other companies the opportunity to take away from your possible earnings, by making us have to move our finger to click a button.
I hope the thousands of folks you've created employment for, the thousands of small business owners that you've helped pursue their dreams and the countless people you've helped save money in turn allowing said people to put that money back into the economy, can sleep at night with such an uncommon approach of ethical business standards.
However, for the stuff we buy, the Amazon or fulfilled by Amazon prices tend to be the lowest for a Prime customer.
If it is a more expensive item we simply google the model number and review the results.
TIP: fulfilled by Amazon is a way to avoid the sales tax that Amazon charges!
Amazon Is Quietly Eliminating List Prices:
http://www.nytimes.com/...ng-list-prices.html?_r=0
I almost always check the different purchasing options and about 95% of the time Amazon is already giving me the lowest price. They do not factor in tax though. Out-of-state 3rd party sellers do not charge any tax, so this could mean a 9% savings on items you don't need urgently.
Conversely, as someone has already stated here, the service if you need to make a return is well worth the extra 9% to buy "Sold by and Shipped from Amazon".
No, no, no. That's simply not true. I had a problem with an "Amazon partner." The product sent to me was defective out of the box. When I submitted my return request, I was told I had to pay return shipping. The seller refused to budge. I contacted Amazon CR, which said it couldn't do anything. I kept complaining, and Amazon finally refunded my money, but still it was clear that Amazon sellers can and do have different return policies.
They act like their return policy is different, but if they get enough complaints their partnership status is revoked, so they WILL accept returns, you just sometimes need to be persistent with the more annoying storefronts.
I've really only had to return one thing to a partner in all of these years and it seems like it was damaged during shipping. They tried to wrangle out of allowing a return, but after a couple of emails we got it straightened out.
Since the above Prime option has been done away with, I am always looking to see if there is a better deal elsewhere. Ebay is one of the choices I like to check with but there are others.
The warning about being able to return defective products is very excellent advice. I have pretty much gotten my choices narrowed down and can't remember the last time I have had a problem even if it was a first time using that seller.
BUT....Price isn't everything......try returning something from one of Amazons "partners". . Amazon has one of the best return policies in the world. Don't like the item ?....press a button, get the return label , ship it back and you get credited from the moment you ship it...not when it's received. On the other hand, each "partner" has it's own return policy, and....watch out ,they're almost always not as generous as Amazon's.
Customer service is okay. I had purchased a gift for a friend who was leaving out of town and I paid extra to make sure it arrived before they were to leave. Amazon failed me there.
As far as the lowest price, definitely not. But again, it depends on what you want/need & how soon you want/need it. I was debating on purchasing an item; it wasn't anything desperately needed and was going to be a Christmas gift. I am so thankful I decided not to buy the item. Amazon had listed the item in its Lightning Deals and had offered it at "a discount". They're "discount" was to jack up the price and then "lower" it to the price they normally sell it for on their site.
After that incident, I'm willing to shop around for whatever I want/need before turning to Amazon. I'm not one of those people who wants/needs to have their items sent to them the same day or the day before.
First, I know and trust Amazon to make things right if something goes wrong (they have always treated me right) or if I need to return an item.
Second, I have less concerns about the potential for fraudsters and counterfeit products when purchasing directly from Amazon.