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Originally Posted by dreamingat30fps
This is true. We have sold on Amazon for a long time and have a love hate relationship with them. You can buy the same exact product on our site for a lot less. We have to pay Amazon a hefty fee for selling on their site, plus we have to deal with the fact that we pretty much have to take anything back or we get dinged by Amazon. So we have to charge a premium when selling on Amazon to cover all that.
The reason you see the price fluctuations is because most sellers use an automated pricing system. Most products, even some of those sold by Amazon, are also sold by other vendors such as myself. Typically whoever has the best overall price is the vendor getting the sale when you click buy now. We call that having the buy box. Now say I have the best price at $100 but I sell out, automatically Amazon switches to the next best priced vendor.
So what most vendors do is use software that basically automatically adjusts the price to compete with other vendors to get the sale. So I would say I'm willing to sell my widget for a range between $70-$100. So if I'm the only vendor selling at $100 and tomorrow some new vendor starts selling the same thing at $90 the software will adjust my pricing down to say $89, then his will go down to $88 etc until one of us reaches our bottom.
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I get that vendors monitor each other to set their pricing in relation to the market and competition. But pricing shouldn't be adjusting day to day or even over a few hours as I've experienced. It's just plain stupid that we now have to shop as if we're buying stocks.