Price gouging on Amazon

[roaringfork]

And on Christmas Day!

https://www.amazon.com/Complete-Knif...2703961&sr=1-6


https://www.amazon.com/Review-Metaph...+of+metaphysic


https://www.amazon.com/101-Blessings...2711706&sr=1-1

[DortmunderX]

I actually looked into this phenomenon before and, amusingly enough, it isn't price gouging, strictly speaking.

Many people who sell a lot of products on Amazon don't manually set their prices. They use apps or scripts which automate their pricing based on a percentage of of other sellers' prices. So what happens now and then is that you have multiple people setting scripts which, for example, call for their price to be 2% higher than the highest price of another seller.* So those scripts end up in a feedback loop until you end up with outrageous prices like the ones you cited. That's not to say that those specific examples aren't price gouging -- but nine times out of ten when you see someone wanting thousands for some not-particularly-in-demand item, that's what happened.

*why would anyone want to be the highest price seller? Well, one dirty little secret of the amazon marketplace is that many of the sellers don't actually own the item that they're marketing. Some people created dozens or hundreds of listings for items that they don't own, and ensure that they are the highest price. That way when someone DOES order from them, all they have to do is order the item from a different seller and have it shipped to their "customer." Most people won't choose the most expensive seller, of course, but some are careless, and every such sale is pure profit.

[Roy Wally]

The third link is definitely worth the 4K price tag. It's probably already been spoken for.

[Crock]

I don't understand. If you have the last of an item that people want, setting the price at a value that people are willing to pay is price gouging?

I always thought of price gouging as taking advantage of certain people or certain situations. When the entire world jumps on Amazon and the entire world sees that it's $4000 to buy a book of blessings for mom because it's the very last one for sale, then that's capitalism, not gouging.

I wonder what you think of auctions?

[roaringfork]

I'd meant my original post facetiously, having an interpretation somewhat along the lines of Dortmunder's in mind. Come to think of it, though, I sure didn't have far to seek for examples of people who voluntarily pay (or consciously set) ridiculous prices for participation in their chosen hobby....

[dallasfan]

Amazon allows third party sellers now and they can set their own prices. It's competitive against eBay. Now when an item is rare and popular there can be price gouging.

[Roy Wally]

Roaring fork, I enjoy your dry humor very much! I wouldn't spend 4K on a book of blessings for mom. Maybe 3k.
And, I think Crock is absolutely correct. Example: If a tornado destroys your remote town and the sole remaining convenient store is selling bottles of drinking water for $25 each, that's taking advantage of people's dire situation and is more akin to price gouging, at least in the negative sense of the word. That's the kind of price gouging I think we'd like to look down upon.
And yes, you can still call it capitalism, because with increased demand, higher prices may follow. Doesn't necessarily make it right though. Depends on the situation, and one's own conscious I suppose.
However, If there is one highly-sought-after Cabbage Patch doll remaining in the country, and you've got it in hand, by all means sell it for the highest price you can!
I do not have any Cabbage Patch dolls to speak of. Sold them months ago.

[Boltfan]

Originally Posted by dallasfan

Amazon allows third party sellers now and they can set their own prices. It's competitive against eBay. Now when an item is rare and popular there can be price gouging.

Amazon has allowed 3rd party sellers for years. Your statement seems to indicate this is a recent change.