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Online Pricing Strategies Used To Capitalise On New Year Fitness Market

January 31, 2017
Jannie Cahill
Written By
Jannie Cahill

LONDON - January 31, 2017. 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 – according to an independent analysis from global eCommerce analytics firm Profitero.

Over the holiday period in the UK, prices of some of the category’s most popular products on Amazon - the world’s biggest online retailer – 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 of best-selling sports-tech products on Amazon UK and US

Source: Profitero.  (100 = average price between 4 Dec 2016 - 14 Jan 2017)

Profitero UK strategy & insights director Andrew Pearl explains: “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.

Editorial Notes

* 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

About Profitero 

Profitero monitors what shoppers see and buy online, actively tracking more than 450 million products across 50 countries for global consumer brands and retailers. Real-time e-commerce analytics, insights and strategic recommendations pinpoint how to improve daily performance across your sales channels.  Our proprietary digital monitoring technology is uniquely combined with sales data, ensuring that you maintain or increase market share. Many of the world’s leading brand manufacturers and retailers work with us to measure and improve their e-commerce performance, including General Mills, Beiersdorf, Sam’s Club, Morrisons, Waitrose, Ocado, and Delhaize.  

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