Analyzing Pricing Strategies in E-Commerce: A Case Study of Amazon Product Reviews

In this vibrant prospect of e-commerce world, understanding the consumer behavior and finding ways to optimizing pricing strategies have become critical for sustaining competitive advantage. This study focuses on Amazon, one of the world's largest e-commerce platforms. The aim is to analyse the interplay between consumer sentiments that are expressed in product reviews and the pricing strategies. By analysing the dataset of 1,465 products, the research explores how pricing, including discount percentage, impacts consumer perceptions and purchasing behaviour. With the help of descriptive statistics and visual analysis, this study reveals the product ratings that are highly focussed around the mean (4.1), which indicates consistent consumer satisfaction. However, the distribution of discounted prices is notably varied, with a significant skew towards lower prices, suggesting a diverse and a potentially inconsistent pricing strategies. The findings of this study reveals the need for Amazon sellers to bring in a balance in deep discounting while maintaining product quality to enhance profitability and customer satisfaction.