Amazon bases its pricing on one predominant factor: market demand. Machine learning leaders, Amazon has surpassed revenue and profits on identical products sold at Barnes & Noble and Toys R Us.
Because of its vast consumer pool, Amazon has dedicated price management teams that change prices with the market as frequently as multiple times per day. Other e-commerce sites have caught up but don’t have the same technologies or resources that Amazon does.
Moreover, e-commerce websites sometimes have access to a valuable price driver: browser history. Say you regularly purchase tickets to see NFL games, or regularly browse research about candles. E-commerce stores selling related services might use segmented pricing strategies to charge you more for the same product!