Analysis from Profitero shows that online prices for the best-selling sports tech products were changing every week over the important Christmas and New Year sales period for fitness devices.
Over the holiday period in the UK, prices of some of the category’s most popular products on Amazon dropped by almost 30% in one week in December. On average, they continued to fall each week until the New Year, before rising again in January.
In the US, the pattern of price changes over the holiday season was different. There, Amazon tempted shoppers with its lowest average prices for the best-selling sports-tech brands, surprisingly, the week before Christmas. By the week after Christmas, prices were on the rise again.
Average price index of best-selling sports-tech products on Amazon UK and US
According to Profitero’s Strategy & Insights Director EMEA Andrew Pearl:
“If brands and retailers want to remain competitive, it’s vital they closely monitor their performance on the ‘digital shelf’.
“Amazon aims to be the most competitive online retailer over time, which explains its constant price variations. If its algorithm detects a significant competitor promotion or price drop, it can respond by lowering its own prices. This can also occur when certain products or categories suddenly receive increased traffic through its search mechanism.
“In addition, Amazon may lower its prices in the short term to drive share in a ‘hot’ sector experiencing increased search traffic. Meanwhile, it may increase prices on less popular items to balance the profitability of its portfolio.”
In a sign of the price variations that can occur among the best-selling sport-tech brands leading up to Christmas, the average price of Nakosite devices was reduced on Amazon UK by 28% – from £23.74 to £16.99 – between the second and third weeks of December.
* The exact same products were used for price comparisons across weeks †Any cell with a dash means the particular product was not a ‘best seller’ during that week
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