Study: Amazon still has lowest online prices in U.S. with 14% price advantage
One retailer had the lowest online prices across 15 categories and against 22 leading U.S. retailers in a new study.
For the eighth consecutive year, Amazon led as the lowest-priced online retailer, with an average price advantage of 14% over its rivals in e-commerce analytics firm Profitero’s annual Price Wars study. The report comes as Amazon is launching Amazon Haul, a new low-priced storefront on its U.S. e-commerce site.
While Amazon maintained its lead in the study, competitors closed the gap compared to last year when Amazon had a 16% price advantage.
Walmart continues as Amazon's closest price competitor, with only a 5% price difference on identical items, though slightly less competitive than last year's 4% price gap.
Target showed solid year-over-year improvement, with online prices only 13% higher (versus 16% last year) than Amazon’s prices, the study noted. Target made the most progress in home furniture, household supplies and beauty, closing the price gap with Amazon by five percentage points and tying Walmart for second in toys with a 2% price difference from Amazon.
[READ MORE: Target to lower prices on more than 2,000 items ahead of holday season]
Other key insights from the Profitero study are below.
•Best Buy upped its game: Best Buy rose to second in video games — a popular holiday category — with prices 9% higher than Amazon, edging out Walmart. The retailer also tied Walmart for lowest prices in appliances.
•Chewy nips at Amazon's heels: Chewy remained competitive in pet supplies, with prices just 1% above Amazon.
•Fashionably close in fashion: Nordstrom improved its price competitiveness in fashion, tying Walmart at 5% higher than Amazon.
"While U.S. inflation has dipped to its lowest point since 2021, consumer confidence remains sluggish, leaving shoppers more cautious as they approach the holiday season. In this climate, retailers that can consistently offer value and keep prices low will be the ones most likely to capture traffic—and wallets," said Mike Black, chief growth officer at Profitero.
Methodology
Only identical items available and in-stock in the same pack configuration were compared. Data was collected daily over 12 weeks (July 8 - Sept. 29, 2024), with daily prices averaged over the full period for comparison. Prices for the same items were collected within 24 hours of each other to ensure validity of the comparisons
Retailers featured in the study included: Amazon, Albeebaby, Best Buy, Chewy, CVS, Dick’s Sporting Goods, Gamestop, GNC, The Home Depot, Kohls, Lowes, Macy’s, Nordstrom, Petco, PetSmart, Sephora, Target, Ulta, Walgreens, Walmart and Wayfair.
