“Key among them is price manipulation through bots, which is a concern for not just online retailers, but also for the consumers who aren’t aware they are paying more than they should,” says Soax CEO & Co-founder Stepan Solovev. The rise of e-commerce leaves many wondering if they are unknowingly paying more for items they should easily purchase at an affordable price. Below, we go into the inner mechanisms inflating prices and how those affect the feeling of online shopping.
Online Shopping in 2024: By the Numbers
Indeed, more people have been purchasing stuff online. According to statistics for 2024, 79% of the U.S. population had engaged in online shopping, or over 268 million purchases from digital platforms.
This information underlines just how intrinsic online shopping has become in daily life. With such a significant number of shoppers, the stakes for fair and exploitative pricing tactics are higher than ever. Knowing what drives the dynamics of online pricing is critical for making well-informed purchase decisions.
How Bots Are Inflating Prices by 50%
The cogs of manipulation are ever being greased by digital platforms that are, in turn, driven by automated bots and software programs created to mimic human activity. According to a Backpack Forum, the bots perform tasks on a scale and speed far above a human’s capacity and, therefore, easily tilt market dynamics. Though designed efficiently, they are increasingly used for less legitimate ends.
Price Scraping:
Bots scrape pricing data from various online stores, allowing sellers to change prices momentarily. This creates a domino effect amongst the other sellers, who instantly increase their prices far higher.
Generating Artificial Scarcity:
By quickly buying items in bulk, bots reduce or eliminate stock. This comes at a premium, where genuine shoppers are left to deal with a sense of scarcity.
Competitor Sabotage:
Some bots purposely trip their competitors’ price-tracking bots, prompting them to heft the price up in retaliation.
Stepan Solovev affirms, “The role of bots in the market is a double-edged sword. While they bring efficiency, their misuse for price inflation can undermine consumer trust and market fairness.”
In Summary
As digitization has crept into shopping, consumers have become very vulnerable to sophisticated price manipulation tactics run by bots. With 79% of the U.S. population shopping online in 2024, this scope is more comprehensive than ever. So, one must be alert, aware, and sharp to avoid overpaying in the ever-automating world of e-commerce.
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