Amazon denies claims by WSJ about increases in prices for essential products
Amazon has pushed back against a Wall Street Journal (WSJ) investigation that claimed the retail giant has raised prices on everyday essentials since tariffs were increased. In a statement, Amazon called the WSJ's methodology "fundamentally flawed" and argued that it paints a "misleading" picture of its pricing practices.
The WSJ's investigation, based on a study of roughly 2,500 low-priced items, found that Amazon had increased prices by an average of 5.2% between January 2020 and July 1, 2020. However, Amazon claims that this sample represents less than 0.04% of its 6 million everyday essential products, making it too small to draw meaningful conclusions.
Amazon also criticized the WSJ for comparing prices between only two specific dates and for using promotional prices as baselines. The retailer pointed out that price increases appeared when temporary sales ended, rather than due to inflation or tariff concerns.
In response, Amazon emphasized its commitment to offering "everyday low prices" and meeting or beating its rivals. The company cited an eight-year track record from the independent research firm Profitero, which finds Amazon consistently offers the lowest prices among 22 major U.S. retailers for everyday essentials.
Amazon also highlighted hundreds of recent price drops and provided a list of 100 items that have seen price reductions this year, some by as much as 38%. The company disputes the accuracy of the price changes highlighted by the Journal, citing numerous errors such as misidentifying temporary promotional pricing as regular pricing and comparing Amazon's in-stock items with out-of-stock items at competitors.
Without further information on the WSJ's response, it remains unclear how they addressed Amazon's critiques. Amazon's dispute focused on the methodology and sample size, highlighting that about two-thirds of the analyzed products had no price change or decreased in price during the same period.
Amazon's rebuttal also drew attention to price hikes among rival retailers on the same items and dates as the Journal's analysis. The company states that these price hikes cannot be left "unchecked" and emphasizes its commitment to offering competitive pricing on essentials.
In conclusion, Amazon's rebuttal to the WSJ investigation raises questions about the accuracy and representativeness of the WSJ's findings. While the WSJ has not yet responded to Amazon's critiques, it is clear that Amazon is committed to offering competitive pricing on everyday essentials.
[1] Wall Street Journal, July 20, 2020: "Amazon Raises Prices on Everyday Essentials" [2] Amazon, July 21, 2020: "Statement from Amazon.com on The Wall Street Journal's Article on July 20"
- In the ongoing dispute between Amazon and the Wall Street Journal, Amazon has criticized the Journal's use of technology, claiming that its methodology for the investigation on price changes of everyday essentials was fundamentally flawed.
- Despite the Wall Street Journal's claims, Amazon's finance department points out that the study's sample of 2,500 low-priced items does not accurately represent the business of Amazon's 6 million everyday essential products, making it challenging to draw meaningful conclusions.
