As Amazon (NASDAQ:AMZN) continues to expand into new markets, retailers struggle to compete with the digital giant. Now a new tool from Savings.com may give them a much needed boost.
The discount hunting site revealed PriceJump on July 15, which compares Amazon's prices with 5,000 other digital retailers.
"There are many reasons why shoppers increasingly default to Amazon as the starting point to their online shopping experience, and now with PriceJump, these shoppers will also know if Amazon has the best price, or not," said Loren Bendele, president of Savings.com, in a statement about the new tool.
Many shoppers might wonder why they should make the effort to compare if Amazon's prices are so low. But according to Savings.com research, Amazon isn't the cheapest option nearly as often as consumers think.
A study in conjunction with the launch of PriceJump compared prices on 1,500 of Amazon's best-selling items that go for more than $10 with other retail sites. Savings.com found that there were better prices than those offered on Amazon more than half the time, and that using PriceJump could save shoppers an average of $47.50.
The more expensive the item, the more helpful PriceJump becomes. For purchases over $100, PriceJump was able to undercut Amazon 70 percent of the time, saving $70 on average. The biggest savings tended to be on photography items and electronics, both pricey categories with plenty of room for trimming.
The tool is easy to use as well. Shoppers need only copy the URL from an Amazon product page into the PriceJump search box and it will give them a simple traffic light recommendation on whether or not to buy from Amazon (red means the item is cheaper somewhere else, yellow means the price is comparable, and green means it's cheapest on Amazon).
That pricing transparency can only help e-retailers competing with Amazon, but if the digital giant's prices really aren't as low as everyone thinks, why does it continue to make lists of top retailers?
According to Eric VanBeek, Savings.com's product manager, it largely comes down to convenience. It's simply easier to keep buying on Amazon even if another site may offer the same thing for a cheaper price, while Prime's free two-day shipping on millions of items is difficult for most retailers to compete with.
Still, retailers seem confident that Amazon's stranglehold on e-commerce can't last forever, whether they're turning to mobile shopping alternatives or launching their own digital platforms.
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