Chapter 1: The Retail Landscape

Amazon has a significant influence over consumer purchasing habits, shaping many decisions we make while shopping.

After nearly three decades, my reliable Emerson Quiet Cool dehumidifier had turned into a mere decoration, running without effectively removing moisture. It was time to invest in a new one. With an appliance store conveniently located less than a mile from my home, I decided to visit it instead of browsing Amazon for options. My budget was set between $250 and $300, although I was unsure of the current market prices.

Upon entering the store, I made several laps looking for dehumidifiers. To my surprise, no sales associates approached me as they usually do. Eventually, I inquired at customer service, prompting a salesperson to come over and assist me.

I asked whether they still stocked dehumidifiers, to which he responded with a surprised smile, guiding me to a small selection of models. Two options were available: one priced at $209 with a small 20-pint capacity, and another at nearly $400, a Friedrich 35-pint model equipped with a built-in pump for drainage.

As I squatted in front of the boxes, I hesitated. $400 seemed excessive, and a familiar voice urged me, “Check Amazon.” The store was bustling, and the salesperson had to assist another customer, leaving me to my own devices. I quickly accessed Amazon on my phone and discovered the same model for $100 less.

My mind raced with questions:

“This deal is fantastic.”

“Why is it significantly cheaper on Amazon?”

“Should I make the purchase online instead?”

While I often buy major appliances in-store and smaller gadgets online, the price disparity was striking and felt like a failure on the store's part. Why didn’t they have a system to monitor online prices and adjust accordingly, or at least offer incentives to compete against Amazon’s pricing power?

Years ago, it might have been reasonable to assume that many consumers didn’t check online prices before shopping, but that’s no longer a sustainable strategy. I empathize with brick-and-mortar businesses struggling against a colossal retail giant like Amazon, which can undercut prices and offer a broader selection.

With the best price in hand, I faced a decision. Typically, I’m not the best negotiator, but a different side of me emerged in this scenario. The salesperson returned and asked for my thoughts.

“Well, I found this unit on Amazon for $293,” I replied with a smile.

I wasn’t sure what response to anticipate—perhaps him dramatically lamenting the existence of Amazon. Instead, he replied, “I can do that,” promptly reducing the price by another $4. I was both pleased and surprised. Is this the new reality for retailers? Offering a higher list price to attract less savvy shoppers while quickly adjusting for those who know how to shop smart?

I appreciated the salesperson's effort, and yes, I did purchase the dehumidifier, but it felt less like competition and more like capitulation. He likely forfeited part of his commission to match Amazon's price, perhaps motivated by the limited inventory or the hope of fostering customer loyalty. He even suggested I might want to buy a mattress, which was on sale, but I declined.

Describing the relationship between retailers and Amazon as merely imbalanced is misleading—there is no equilibrium. Amazon is dominating the consumer marketplace to an extent that it’s hard to imagine a purchase made without considering their prices.

I know someone who once vowed never to shop on Amazon, yet succumbed during Prime Day, seizing the opportunity to save substantially on a gaming laptop. Regardless of opinions on Amazon’s dominance, the reality is that many consumers prioritize finding the lowest price, especially in times of economic strain.

Is this trend beneficial for the retail landscape?

Chapter 2: The Future of Retail

Exploring the implications of Amazon's pricing strategies and the evolving retail landscape.

Insights into Amazon FBA PPC Advertising and retail strategies to remain competitive.