thanks for watching tech wiki click the subscribe button and enable
notifications with the bell icon so you won't miss any future videos did you
ever set up a lemonade stand during the summer and come to the realization that
you might sell more lemonade if you knock a bit off the price in the evening
when it isn't quite so sweltering hot assuming that is that the cops didn't
shut you down for the heinous crime of selling flavored water without a permit
well if so congratulations you essentially did the same thing that
amazon does every day obvious they do it
on a much bigger scale now the exact
formulas are treated as closely guarded trade secrets so we're gonna be relying
on some pretty good third-party analysis of the sophisticated mechanisms that
Amazon uses to make millions of changes
per day to the pricing of the items on its site and some individual items even
get more than one price change in a single day first up obviously Amazon
sometimes raises prices when items are in high demand that's simple enough to
track through orders and pageviews but their whole strategy is far more nuanced
on super popular items that sell like hotcakes Amazon's algorithms keep an eye
on what they're selling for on other sites and then tweak the price to
undercut the competition not only does
this lead to more sales of that specific item but it has some great ancillary
benefits for Amazon as well one is because Amazon has used this tactic for
such a long time they've cemented themselves in the minds of many
consumers as the place to go for the best deals dramatically increasing site
traffic and once the customer has been trained to not bother to look elsewhere
Amazon can then strategically increase
the price of items that a customer might want to order together for example if
it's summer you might find a great deal on a grill but things like spatulas and
brushes and cheesy novelty aprons might
actually be more expensive on Amazon as the algorithm figures that people would
rather simplify their lives by shopping in one place rather than spend time
looking around to save a few bucks on their propane and propane accessories
it's Amazon's mostly online presence
that allows them the flexibility to make these kinds of changes on the fly stores
that have both online shops and brick-and-mortar retail locations like
Best Buy or Walmart simply don't have the resources to adjust prices so
aggressively can you imagine being the guy who has to change all those little
price stickers every hour all day Amazon
also uses complex algorithms to determine which price you'll see when
there are multiple sellers for an item through Amazon Marketplace their service
that allows third parties to list items on their site now as you can imagine
Amazon generally gives preference to products its selling directly but the
algorithm also considers how much more expensive one seller is than another how
highly rated and popular the seller is how often the seller generates returns
and whether Amazon itself handles the
shipping they consider all that before showing you a price which attempts to
draw you in by offering a cheap deal from a reputable seller of course as
much computing muscle as Amazon has to crunch all these numbers that doesn't
mean that they've totally mastered the art of perfect pricing on over a half
billion items for example they famously listed a used textbook for 23 million
dollars back in 2011 although come to
think of it looking at the prices at the campus bookstore lately that might not
actually be that far off what are you looking for something that isn't
overpriced then checkout private Internet access VPN not only does p.i a
working up to five devices at once by hiding your true IP address and allowing
you to bypass geo restrictions and censorship by making you appear that
you're connecting from somewhere else it also blocks unwanted connections to help
prevent attacks Auto blocks all traffic if the VPN disconnects keep to your data
out of the hands of advertisers and other snoops or tracking your activity
prevents DNS leaks and even includes mace P is built-in malware blocker PIAA
supports multiple VPN protocols and encryption levels allowing you to dial
in the exact level of protection that you need they have apps for Windows Mac
Android iOS Linux and even a Chrome
extension with support for more platforms coming soon incredibly and P
ia has over 3000 service in 28 countries and does not log user activity so what
are you waiting for check them out today at the link below so thanks for watching
guys if you have an idea for an upcoming episode or subject you want us to cover
let us know in the comments hit the bell icon wherever that does like dislike
whatever come back and watch again next time thanks