Competition Based Amazon Pricing Strategy of Adidas

By GrowByData Content Team

| READ 4 MIN
TOPICS Blog, Insights, Price Changes, Retail
Adidas Pricing Strategy-Growbydata

Adidas is a very popular and highly competitive brand on Amazon. Over the course of six months (June 2019 to December 2019), we recorded approximately 2.4 million price changes on 32,370 Adidas products by 2,655 unique Amazon sellers. This last figure represents 81% of the total sellers detected. Of these price changes, 63% of them — i.e. about 1.5 million — were prices lowered by sellers, which impacted 31,732 different products. A total of 2,587 unique sellers were found to have lowered their prices, which equals 79% of total sellers.

We recorded that this 63% portion of price changes, which resulted in new “lowest offers”, impacted 36% of total products. For these products, their lowest offer price was found to have decreased. A total of 34% of price changes made the lowest offer higher than before. This impacted 34% of all products. Meanwhile, only 3% of price changes by the seller have not impacted the lowest offers on the market.

The data shows Adidas sellers are tracking their competitor’s prices and repricing Adidas products with lowest-pricing strategies. With competition-based dynamic pricing strategies, sellers are finding opportunities to raise their lowest price to maximize revenue.

Adidas sellers are tracking their competitor’s prices and repricing Adidas products with lowest pricing strategies.

Price Change with New Lowest Offer

The chart below shows the top 10 sellers who are looking to be the lowest offer seller. Amazon.com itself has made the most price changes. For 83% of its Adidas catalogue, Amazon.com has made price changes in efforts to be the cheapest on the market. Of these changes, 52% resulted in a new lowest offer for the product while 38% of changes made the lowest offer higher than it was before.

Lowest Price Strategy from Last Run- Growbydata

The chart below shows the product percentage by price band where lowest-pricing strategies are seen. Almost all price bands have seen similar pricing strategies by the seller. The highest percentage in all price bands is the pricing changes where the lowest offer for the products has decreased from before. This is followed by the percentage of price changes where the lowest offer increased.

Sellers are constantly looking for opportunities to raise their lowest price to maximize revenue.

Price Strategy on the basis of Price Band- Growbydata

The Adidas brand on Amazon is highly price competitive and most sellers are equipped with competition-based dynamic lowest-pricing strategy. Therefore, in order to compete on Amazon with highly competitive sellers like Amazon.com, Zappos, etc., sellers should consistently monitor competitor’s prices and devise a dynamic lowest-pricing strategy backed by accurate daily price data matched at the variant level.

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