Is Amazon Testing Kindle Paperwhite Pricing Strategies?
Although Amazon still hasn’t provided an official explanation for the recent price fluctuations of the Paperwhite, I’m almost inclined to say that Amazon is testing how customers react to the pricing. To recap: When we reported three days ago that the retail giant was offering its flagship eBook reader as a free addition to a mobile contract, the price increase for the eReader immediately caught attention.
The Kindle Paperwhite became 20 euros more expensive, requiring 119 euros at checkout. However, this price hike was only short-lived: the price was lowered back to 99 euros. One might think it was a mistake.
Yet, the next day the sale price rose again, but also just briefly. After a few hours, the increase disappeared and the Paperwhite was available again at the familiar under-hundred promotional price. But that wasn’t the end of it: the following day, the same 20 percent markup appeared again. This time I was convinced the higher price was here to stay. Wrong! Once more, Amazon reversed the hike after just a few hours.
Unusual Price Activity
Price fluctuations in electronic products are, of course, not unusual – especially at Amazon, where sale prices for entertainment electronics frequently change. However, it is quite surprising to see such dramatic swings in the price of an in-house product that is already offered at a significant discount. After three days and three price changes, it’s hard to believe it could just be an innocent mistake.
The price shot up to 119 euros multiple times in recent days
The impression more and more is that the price increases are testing customer acceptance. After all, the Paperwhite is priced more cheaply in Germany than in any other Western market. In the US, the non-ad version costs $139 (with ads for $119), in the UK it costs 109 pounds, and in France, Italy, and Spain, it’s priced at 129 euros. The low price point here is undoubtedly a response to the strong competition from the German Tolino brand. Nowhere else is the US retail giant likely facing such stiff competition as it is in the German eBook market.
Note: In Japan, the Paperwhite is even cheaper, at the equivalent of 80 euros. However, the US company has always faced significant challenges in the Japanese market, with Kindle’s launch delayed for years due to the reluctance of many Japanese publishers. Additionally, dedicated eBook readers are not as crucial due to the popularity of manga.
No Long-Term Price Increases
While the Kindle Paperwhite pricing remains an intriguing topic, it wouldn’t be a stretch to say that any potential price increase won’t be permanent. Although Amazon started the price war with the Kindle in this region as well, the recent price drop to around 100 euros for a lit reader is something we have the Tolino alliance to thank for.
The Shine was launched in 2013 at a significantly lower price of around 100 euros compared to the Kindle Paperwhite (then 129 euros). This aggressive pricing was undoubtedly necessary to gain traction and quickly capture market share. However, it also forced other providers into at least short-term promotional campaigns, and gradually, consumer price awareness began to decrease. The ongoing promotional sale of the Paperwhite for 99 euros over the past four months has further reinforced this trend.
