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Lessons in Retail: Amazon’s Speed in Dynamic Pricing Leads to Disruption

May 1st, 2019 (Updated 06/20/2023) | 3 min. read

By Garth Hoff

Omnichannel and B2B firms cannot afford to be slow in response to consumer demands. One of the ways Amazon disrupts its industry is by using dynamic pricing. Pricefx’s Price Builder and Price Analyzer help users accurately leverage the power of dynamic pricing.

Both Meg Whitman of HPE and Mark Benioff of Salesforce.com chose to focus on speed at the 2016 Davos World Economic Forum Digital Transformation of Industries panel. Whitman said, “My view is that the future belongs to the fast,” and Benioff built on this by noting, “Speed is the new currency of business.”

These reflections on speed and efficiency still ring true today. Benioff specifically noted that speed is the currency of business… but I have intentionally changed this to focus on PRICING. I say, “Speed is the new currency of pricing.”

It’s almost impossible to talk about speed, pricing or general business success without talking about Amazon. The company is likely to become only the second in history to be worth more than $1T, and its history of disruption makes it one-of-a-kind. In fact, Amazon is unique because their core competency is disruption.

 Speed, Dynamic Pricing, and Amazon

SPS Commerce and Retail Systems Research (RSR) recently completed a survey of more than 500 retailers, suppliers, distributors and logistics firms to determine the biggest factors impacting consumer buying decisions. Amazon’s shadow looms large in this survey as respondents report that price remains the top factor for any buying decision.

Top 4: biggest impact on buying decisions

Pricing 68%, Product Availability 54%, Product Assortment 36%, Product Information 28%

Amazon’s marketplace makes price comparisons across multiple retailers extremely easy. In addition, product availability, also an Amazon strength, is cited as the second most important factor. The key takeaway here is that if the price is right, if it’s available and if the vendor can complete the required portfolio, the deal gets a green light.

The Result of Amazon’s Speed is Disruption

Google is the golden standard of search, so much so that its business model overwhelms the vast majority of its competitors. However, because Amazon is resetting customer expectations around convenience, speed, price and selection – the first point of contact when searching to purchase is Amazon and not Google.


2X online searches start on Amazon vs. Google

55% of searches start Amazon and 28% of searches start on Google

So, what are the best-in-class B2B and omni-channel firms learning from this master class in speed? To double down on improving their response to customers’ needs. Once such way of increasing responsiveness is through dynamic pricing.

Amazon is reported to change prices on its products every 10 minutes, and during promotional periods, lower their prices to undercut other retailers. What do you do if you want to use speed and dynamic pricing to disrupt (or at the very least, increase revenues) your industry?

Enter PriceBuilder and PriceAnalyzer.

Dynamic Pricing with PriceBuilder and PriceAnalyzer

Pricefx live price grid… Really Fast, Really Flexible

We could not have achieved this without your outstanding work and we are glad that we made the right choice with Pricefx

Think of Pricefx as a great family SUV, with a Dodge 707 Hellcat engine and rocket boosters, plus a Swiss Army knife bolted to the roof. In short, we’re really fast, really flexible and really effective in changing the game for you and your pricing team.


Speed is increasingly critical in business success, and in the context of pricing, it’s becoming a competitive differentiator. Companies are exploring updated e-commerce and omni-channel strategies and utilizing market, cost and other pricing factors. It will be the companies that implement fast, flexible and smart pricing that will succeed in a modern market driven by an Amazon-inspired decision process.

Garth Hoff

Principal Pricing Solution Engineer , Pricefx

Garth Hoff, Pricefx, is an over 15-year veteran of the pricing industry.

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