Since its inception 25 years ago, Amazon has transformed customer expectations, from delivery speed to returns policy. But perhaps there is no larger change in consumer expectation than what Amazon has done to pricing.
Through regular re-pricing of millions of products every day, Amazon has transformed customer expectations on both how often prices are permitted to change across retail and by how much.
The e-commerce giant’s ability to rapidly and frequently adjust prices on millions of items has allowed it to build a global low-price reputation. This is all done by undercutting competitors on key value products, while protecting their margins by charging more for less price-sensitive items.