Amazon prices are an average 13% lower than other retailers for everyday essential items such as food and beverages, a new study has revealed.
According to global eCommerce analytics company Profitero, who today published the results of its annual UK Price Wars study, there are “stark” online price differences across 15 leading retailers, including Asda, Amazon, John Lewis and Ocado.
The study analysed online prices for over 11,000 matching products, finding that Asda was close behind with prices that were 5% more expensive than Amazon, followed by Ocado (7%).
Tesco had the biggest price gap, where online prices for exact-matched products were found to be 15% more expensive, on average, than the multinational online retailer.
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Amazon’s price lead in other essential categories such as baby products and household supplies were even wider.
Prices for baby products were 9% less expensive compared to competitors Argos, Asda, John Lewis, Ocado and Very and its prices for household supplies were 12% less expensive compared to other retailers.
Soaring inflation in the UK is widely expected to lower consumer appetite in the lead-up to Christmas, which is typically one of the busiest trading periods of the year for retailers.
According to customer experience analysis company Sitecore, 41% of U.K. consumers say they are unable to afford Christmas and 33% are planning to spend less this year than in past years.
“As the cost-of-living surges, consumers will reduce spending on luxuries and prioritise the most essential everyday items, like groceries, baby and household supplies,” said managing director of EMEA & APAC at Profitero, Mark Wilkinson.
He added: “Retailers need to offer shoppers more value in these categories to keep them loyal, not only by offering low prices on trusted brands but also by providing cheaper alternatives through strong own label and challenger brand offerings.
“Cash-conscious consumers will cut back on discretionary spending, which means all retailers will keep dropping prices to prop up demand for non-essentials, off-setting some of the inflationary trends caused by supply chain issues.
“Consumers who do their research and shop around can make significant savings,” Wilkinson said.
The news comes as Amazon was accused of making a huge oversight of the rollout of HFSS regulations across its website last month, which left many brands unable to properly display products on search and category pages.
