The Prevalence and Effectiveness of Price Promotion on Amazon



Volume 5, Issue 4
Lelai Xu

Published online: 26 August 2019
Article Views: 25

Abstract

The intention and effectiveness of sales promotion are important topics for manufactures. This research examined the relationship between sales rank and price promotions for appliances and shoes on Amazon. he data set in the paper was obtained from keepa.com, a price tracking website for products sold on Amazon either directly by Amazon, or by third parties who use the Amazon platform. The results show that for appliances, the price tends to remain low in the long term after promotion, while the improvement in sales rank is quite significant. Conversely, for shoes, the price bounces back quickly after promotion, while the improvement in sales rank becomes rather opaque in the long run. This divergent behaviour of the sales rank may be explained by the difference in reason for launching the promotion. While the primary aim for appliance sellers is to increase brand recognition, the shoe retailer is more likely to be clearing inventory because of the fast changes in fashion trends.

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To Cite this article

Xu, L. (2019). The prevalence and effectiveness of price promotion on Amazon. International Journal of Business and Administrative Studies, 5(4), 177-185. doi: https://dx.doi.org/10.20469/ijbas.5.10001-4