I think wish list is one of amazon's great feature. Most of the time, people use this feature to add items they intend to buy. While this helps increase sales, amazon has not done much to use this list.
Pricing is one of my favorite subjects and I think a lot about prices. In case of amazon's wish list, I think amazon should add an attribute in a user's wish list that says notify me when the item is price x or lower. And then amazon can analyze the list of all users for each item and find the price point where it can make the best profit. Then if it makes good business sense, then lower the price on that item for 24 to 48 hours and send an email to users notifying them of the new price on the product in their wish list for a limited period of time.
Calculation of the price point may be more complex. People will likely report lower prices than they are willing to pay so amazon might want to notify people when the price is x percent higher than they said they would buy an item for. But the idea remains the same. Amazon can use the wish list to increase its profits and its currently not doing so.
Pricing is one of my favorite subjects and I think a lot about prices. In case of amazon's wish list, I think amazon should add an attribute in a user's wish list that says notify me when the item is price x or lower. And then amazon can analyze the list of all users for each item and find the price point where it can make the best profit. Then if it makes good business sense, then lower the price on that item for 24 to 48 hours and send an email to users notifying them of the new price on the product in their wish list for a limited period of time.
Calculation of the price point may be more complex. People will likely report lower prices than they are willing to pay so amazon might want to notify people when the price is x percent higher than they said they would buy an item for. But the idea remains the same. Amazon can use the wish list to increase its profits and its currently not doing so.
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