• Following in Amazon’s algorithmic footsteps, more retailers are employing dynamic pricing that reflects demand and competition. Just as the price of a product sold on Amazon changes multiple times per day—even within the span of clicking on an item and checking out—Target and Walmart are experimenting with dynamic pricing to personalize shopping to time and place, which keeps them competitive, but can also influence customer perception negatively and lower margins.
  • In 2018, Walmart’s ecommerce sales rose 40% and the company outran Apple to become the third-largest online retailer in the U.S. to Amazon and eBay. In its quest to stay atop of the competition in the age of Amazon, groceries retain big potential for Walmart (an area where Amazon continues to struggle), and the company also has yet to tap into advertising (an area where Amazon is excelling). Walmart could leverage its 4,755 stores and 300 million monthly in-store shoppers to optimize an ad business, utilizing the offline footprint that Amazon doesn’t have. Kroger is also priming its competitive edge with plans to strengthen its flywheel between online and in-store commerce by 2020.
  • To overtake the streaming behemoth Netflix, Amazon Studios plans to release approximately 30 movies per year. This follows in line with the company’s Sundance Film Festival shopping spree, where it purchased five films for $47 million (in comparison, Netflix spent $22 million).