LONDON–(COMMERCIAL THREAD) – Global ecommerce analytics firm Profitero today announced the results of its second annual UK price war study. The study analyzed the prices of more than 5,000 products in 13 categories from four major online retailers, including Amazon, Argos, Asda and Currys.
For the second year in a row, Amazon proved to be the cheapest online retailer, beating all of the competitors reviewed in all categories. Amazon is in a strong position ahead of the Christmas shopping season, with prices on average 13% cheaper than its competitors, including lower prices in key categories like electronics, toys and games, and video games .
“We have found that online prices have increased by more than 5% since last year, as global supply chain issues and labor shortages continue to affect the costs of goods and services, ”said Mark Wilkinson, Managing Director EMEA and APAC at Profitero. “The 2021 Christmas season could be the most expensive ever. Buyers will start looking for deals early in order to spread the overall cost and make sure they don’t run out of key items or they risk overpaying for giveaways this year.
Other key findings from the report:
- Amazon’s price advantage is widening: The price differential between Amazon and its main competitors increased in 10 of the 13 categories studied compared to the results of the Price Wars 2020 study. With the exception of fashion and home furnishings, Amazon’s prices were less than two digits in all categories. The retailer was strongest in beauty products and health and personal care items, with prices for both found to be 20% cheaper than its competitors.
- Argos and Asda lose ground: Prices at Asda were 16% higher than Amazon, an increase of 1 percentage point from 2020. The retailer made impressive improvements in household supplies, down 13 percentage points from the previous year. last year, but the prices were still 10% higher than Amazon. These improvements were also offset by a 10 percentage point increase in office equipment and supplies, which rose from Amazon’s 3% in 2020 to 13% in 2021. Meanwhile, Argos has seen its price gap with Amazon widening by 2 percentage points, rising to 14% from last year. The retailer has done well for fashion and home furnishings, with prices below Amazon at 7%, but it’s still a percentage point higher in both categories compared to last year.
- Curries remain stable: Currys was the only retailer that did not see its overall price differential with Amazon increase from 2020. Although it may be the most competitive retailer with Amazon, prices at Currys were still, on average , 10% more expensive. The retailer’s most competitive categories were home appliances and video games, with both categories having prices below 7% of Amazon.
Profitero’s full report on Price Wars: 2021 UK Edition is available here.
Every day, Profitero monitors prices and other data on more than 70 million product pages across hundreds of unique retailer sites and mobile apps. For this study, Profitero analyzed the online prices of 5,330 identical products across 13 categories over a 12-week period starting July 12 and ending October 3, 2021. Retailers examined include Amazon UK, Argos, Asda and Currys, which were chosen from the online database. traffic, product assortment, and a high level of consumer interest. Profitero’s methodology consists of comparing online prices between retailers only on identical items (same UPC, same brand and same pack configuration). The study only compares first party prices collected on the same day, with the two retailers in stock. When prices were not available for both retailers on the same day for matched items (as in the case of out-of-stock items at a retailer), the items were excluded from Profitero’s comparison. Inflation data comes from Profitero’s Ecommerce Price Index (eCPI), which tracks monthly online price changes of over 11,000 top-selling products across 15 key consumer categories from six major retailers. .
Profitero is one of the world’s leading providers of e-commerce performance analysis. Google, L’Oréal, General Mills and more than 4,000 other brands use its platform to measure their e-commerce performance on more than 600 retail sites and mobile apps in 49 countries. Profitero’s proprietary technology and algorithms estimate daily sales of products sold on Amazon and provide actionable insights to improve product content, search placement, ratings and reviews, availability, assortment and pricing to help brands identify competitive advantages and accelerate their e-commerce sales. On average, brands that use Profitero are able to grow their sales on Amazon 70% faster than category competitors. To learn more, visit www.profitero.com.