Introduction To E-Commerce Predator Pricing And Its Advantages And Disadvantages
The COVID-19 epidemic has caused a boom in health monitoring medical devices. Pulse oximeters, which measure blood oxygen saturation levels and pulse rate, are among the most commonly purchased health equipment. Pulse oximeters will reach $3.4 billion by 2028 with a CAGR of over 9%.
The sudden demand for necessary medical equipment and fears of an epidemic misguides consumers. Due to the increase in pulse oximeter demand, vendors are more likely to exploit customers by selling them defective or useless devices. The increase in people that report faulty pulse oximeter goods on social media is proof of this.
Businesses that cannot compete with a low-cost product or service quit. When consumers receive a product at a low price, predatory pricing makes it possible to create a monopoly.
Predatory pricing is also used in e-commerce to entice or scam customers into purchasing fake goods. These vendors quickly sell large quantities of the same goods under various names and descriptions, and then they vanish.