According to reports, Amazon.com has concluded that large numbers of consumers will only make a purchase if the items they are looking to buy are discounted. The e-tailing giant, which for years hasn’t seemed all that interested in selling products at a profit, has also decided it would like to make better margins on the items it ships. To move itself in the right direction, the company has decided to eliminate the use of list prices on its site.
While retailers typically do not sell at manufacturer suggested list prices, the baseline is often used as way for merchants such as Amazon to quantify the deals they are offering. Ultimately, however, pricing comparisons come down to one retailer’s price versus another. So, will this move prove positive for Amazon or something less than that?
According to various reports, one reason that Amazon may be eliminating the use of list prices is over concerns the company could find itself embroiled in lawsuits over its pricing practices. A number of suits have been brought against J.C. Penney, Kohl’s, Macy’s and others over the listing of regular prices when running sales. The suits have centered on allegations that retailers’ use of regular prices is deceptive since sale items are never sold for that amount.
One potential concern is that the elimination of list prices will in some way affect consumer shopping search patterns online. For many, Amazon has become their de facto shopping search engine. Without a comparison between list and final price, will consumers begin to see a need to extend their searches beyond Amazon and its marketplace sellers?