FT Reports on Amazon Repricing

The Financial Times has reported recently on Amazon repricing tools, claiming their use could cause a stock market-like pricing collapse.

The piece Amazon ‘robo-pricing’ sparks fears (registration required) states that "High-speed trading tools pioneered in the stock market are increasingly driving price movements on Amazon as sellers use them to undercut and outwit each other" then goes on to say that "the tools create the risk of malfunctions similar to the 2010 [stock market] flash crash, when [automated] trading was blamed for some US stock prices falling to near zero, then rebounding in 20 minutes."

The SellerEngine blog, however, correctly points out that most repricing tools allow the seller to set a floor price - preventing this kind of crash from occurring.

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