Amazon Reportedly Jacked Up Bottled Water Prices As People Prepare for Hurricane Irma
The price of bottled water reportedly shot up on Amazon ahead of Hurricane Irma, and the company’s “dynamic pricing” model appears to be at fault.
Customers originally believed Amazon was “surge pricing” bottled water, but the retail giant explained that it doesn’t engage in surge pricing at all.
Instead, the problem seems to be an algorithm. Amazon uses a “dynamic pricing” model that adjusts the cost of products based on demand and competitor pricing.
The increase in demand for bottled water is the likely culprit behind price shifts, along with cheaper brands of bottled water selling out.
Amazon may reconsider engaging in “dynamic pricing” on survival staples, instead of profiting from customers preparing to confront a deadly storm.
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