Sponsored by Navy Federal Credit Union
TRAFFIC ALERT In Prince George’s County, on the Outer Loop of the Beltway before St. Barnabas Road, traffic gets by on the far left lane.

Study shows Amazon pricier than Wal-Mart

WASHINGTON – Think buying from Amazon is cheaper than shopping at the store? Think again.

Researchers at Kantar Retail found that Wal-Mart prices were on average 20 percent cheaper than prices at Amazon.com, Bloomberg reports.

The study tested products including food and non-food items and beauty products.

Wal-Mart has been in the business and building buying power for 50 years, while Amazon is newer and must sometimes rely on third-party suppliers, which drives up prices in some cases.

However, according to another Kantar survey, Wal-Mart should still be concerned. Five years ago, 25 percent of Wal-Mart customers shopped at Amazon, but the number is now 50 percent.

Consumers “trust Amazon will have a low price,” study co-author Anne Zybowski told Bloomberg. “On many items, they do have competitive prices. That’s how Amazon has won millions of customers one shopper at a time”

Another advantage Amazon has is supply.

Amazon had all of the 36 products that were price-tested in stock. Three percent of items tested at a Walmart Supercenter were out of stock, while 14 percent of tested items on Walmart.com were not available.

The prices don’t include shipping costs, Bloomberg says, because both companies offer a variety of options that can differ widely in cost.

WTOP intern Will Friedman contributed to this report. Follow WTOP on Twitter.

(Copyright 2012 by WTOP. All Rights Reserved.)



Advertiser Content