"School districts are paying extra for basic supplies thanks to unpredictable dynamic pricing on Amazon, which is costing them on average 17 percent more, according to a report by the Institute for Local Self-Reliance (ILSR). Unlike the contracts schools and local governments would traditionally make with local suppliers, who would bid to offer the best rates, Amazon Business doesn't guarantee locked-in prices, resulting in huge pricing swings."
"For instance, the report mentions an employee of the City of Boulder, Colorado who purchased a 12-pack of Sharpie markers for $8.99, while an employee of the nearby Denver Public Schools was charged $28.63 for the same product on the same day. ILSR cites similar price fluctuations for Crayola markers, Kleenex tissues, Expo dry erase markers, Elmer's school glue, and more."
"ILSR found that "among the 100 most frequently ordered products, the highest prices Amazon charged were, on average, 136 percent higher than the lowest." As the report points out, Amazon Business has also reduced competition for these necessary school and office supplies, cutting down the number of independent suppliers from 1,300 to 900 over the past decade."
School districts are paying an average of 17 percent more for basic supplies due to unpredictable dynamic pricing on Amazon. Amazon Business pricing is not locked and produces wide same-day price swings for identical items. For example, the same 12-pack of Sharpie markers was purchased for $8.99 by one buyer and $28.63 by another on the same day. Among the 100 most frequently ordered products, highest prices were on average 136 percent higher than the lowest. Amazon Business has reduced independent suppliers from 1,300 to 900 over the past decade, and independent suppliers beat Amazon's prices on 68 percent of commonly purchased items.
Read at The Verge
Unable to calculate read time
Collection
[
|
...
]