Pricing in ecommerce isn’t for the faint of heart. One wrong move and you’re either bleeding margin or watching your Buy Box disappear. In a marketplace driven by algorithms, inflation, and unpredictable tariff policies, finding the “just right” price is harder than ever. But for brands that can read the signals, there’s power, and profit, in precision. At Spreetail, we treat pricing like a science and a strategy, combining proprietary tools, real-time market data, and platform expertise to help brands compete smarter.
We sat down with Will Wong, Senior Director of Pricing at Spreetail, to get his expert take on how brands can adapt pricing strategies across Amazon, Walmart, and Target, without sacrificing value perception or long-term brand equity. Because in today’s market, staying competitive isn’t about chasing the lowest price—it’s about knowing when to hold your ground, when to adjust, and how to drive sustainable growth.
What data signals should brands monitor to know when to adjust or hold firm on price?
There are several key data signals that help us balance competitiveness with financial sustainability, particularly on Amazon, which remains our largest channel and serves as a bellwether for the broader ecommerce space.
One critical input is what we call the Amazon CPI, an internal index tracking year-over-year price changes on the top 1,000 items across categories where we compete. This gives us a macro-level view of pricing momentum.
We also maintain a robust Digital Shelf—essentially a competitor set representing $3B in annual revenue across SKUs that closely map to our portfolio. Using tools like Keepa, we monitor year-over-year price movement to ensure we’re reacting appropriately to the comparable items in the market.
Equally important is understanding price elasticity—how much demand shifts in response to pricing changes. We refine this regularly by looking at both consumer behavior and the presence of low-cost competitors like China-based brands, which typically signal lower elasticity. For example, we’ve seen that a 10% price increase can reduce demand by 40%, but if category-wide price increases are expected, that drop may shrink to around 20%.
What are the risks of overcorrecting versus underreacting on price?
It’s a delicate balance—classic retail tradeoffs, now supercharged. If you overcorrect and raise prices too aggressively, you risk a steep drop in demand, potential suppression on Amazon due to high-price violations, and losing your BSR (Best Seller Rank) momentum. Recovering from that can take weeks or months.
On the other hand, underreacting means selling through inventory too quickly and being unable to meet demand later in the season. That scenario isn’t viable either. At Spreetail, we’re working closely with our brand partners to align pricing with inventory planning. In some cases, that means selectively raising prices where the market will bear it, while closely monitoring stock levels to remain agile, especially as tariff policies continue to evolve.
With the current tariff landscape, how should pricing strategies shift across top marketplaces like Amazon, Walmart, and Target?
Diversification isn’t just about sourcing—it extends to your channel strategy too. Over-reliance on a single platform increases risk exposure, whether it’s fee changes, policy shifts, or fulfillment disruptions. At Spreetail, we generally aim for price parity across major retailers. Our philosophy is that a customer shouldn’t be penalized for their retailer preference.
That said, some smaller marketplaces carry higher fees, and in those cases, we may adjust prices slightly to account for those added costs. But for platforms like Amazon, Walmart, and Target, we maintain as much consistency as possible to protect both customer trust and brand equity.
How do you measure value perception, and how can brands reinforce it without heavy discounting?
Value perception is multifaceted, but from a pricing and promotions standpoint, we’re taking a very strategic, event-driven approach right now. With potential inventory shortages on the horizon, we’re being selective about when and how we promote. Our focus is on Tier 1 events like Prime Day, and even then, we’re controlling discount depth based on brand goals.
One of our key tactics is earning list price strikethroughs on Amazon. These strikeouts, based on MSRP, create a strong perception of value without lowering your base price. They’re not guaranteed, but by meeting certain eligibility criteria and testing different actions, we can trigger them effectively and improve perceived savings—without compromising margins.
In an environment where every pricing decision carries greater weight, brands can’t afford to guess. The key is grounding your pricing strategy in real-time data, market context, and channel-specific nuance. Whether you're facing tariff headwinds or peak season demand spikes, pricing with intention can drive performance and offer value.
Digital Marketer
