Are you paying the best price at online retailers?
An article by the Sunday Times about Amazon pricing, revealed a well known practice called "Dynamic Pricing", although not new, this method of pricing items according to different pieces of information the retailer has collected about the consumer, takes us back to the danger of profiling and how unethical this can be. It is now gaining momentum that we see major publications warning their readers to be aware of such practices when making online purchases.
https://www.thetimes.co.uk/article/true-cost-of-amazon-pricing-revealed-pl0kj5gwt
What is Dynamic Pricing?
If you are a shopper at any online retailer chances are at one point or another you have been the victim of Dynamic Pricing. Although The times articles references Amazon in particular, this dynamic pricing is widespread on the internet, Amazon was selected basically because it's the biggest online retailer.
| Online retailers are paying 100's of millions of dollars a year to buy your private information, and turn around to use it or resell it to partners. Your private information in this case is your surfing habits, what music or videos you watch, what articles you read, what is your favorite news outlet, what car you drive, what pets you have or like and the list goes on and on. |
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So how does that information factor in the unethical practice of dynamic pricing?
| Let's assume you are a proud pet owner of a cat, your cat pics are on your facebook or twitter account, the next time you look at a cat food/toy offer chances are the price you see as a great deal is not what someone else sees. You are paying a premium because of information you already revealed. They know you need this product and thus are willing to pay more for it. But this is done with a lot of research and the prices they offer will seem to be a fair deal, but the reality is your habits have stopped you from getting the best possible deal. |  |
Another item that might factor into the pricing scheme is your interests, how many times did you read about the new upcoming iphone, or watched a video about it? did you know if you have done that you already influenced the best offers that companies are willing to make you to get your business?
Dynamic Pricing can also be affected by the time of year you make the purchase, time is of the essence, retailers change prices based on supply and demand, buying an item during times of high demand greatly influence the price as well.
So what to do to be certain you are not a victim of Dynamic Pricing?
1- Download a shopping browser, a browser you do not use on regular basis. Prevents tracking of surfing habits and the influence that puts on an item price. This does not prevent IP tracking.
2- Get a shopping friend, if you have friend or family in a different location/state, ask them to look for that specific item you are looking for and see if they get a better price option with the online retailer.
3- Bookmark your item and see if the price changes every other day. That works great for items you buy on regular basis, or items you do not need to buy immediately.
4- Coupon code discounts, most retailers offer sizable discounts on purchases with coupon codes, you can find these posted all over the internet by people who used them and rated them.
5- Email offers, if your online retailer has an option for email offers, make sure to check that option. Some retailers like NewEgg offer sizable one day discounts that applies to any item you buy, combine that with other manufacturer or discount offers to get a great deal.
These things will help you a bit with dynamic pricing, there are of course more steps you can take like using a vpn or more private browsing, but that is a bit extreme and might prevent you from fully enjoying your web surfing experience.