US Schools Face Billions in Overpayment Due to Dynamic Pricing on Amazon
A recent report by the non-profit Institute for Local Self-Reliance has found that schools and local governments across the US are overpaying for basic supplies due to contracts with Amazon's dynamic pricing system.
According to the study, these districts could have saved billions of dollars if they had locked in the lowest prices offered by Amazon. The report analyzed data from 55,000 purchases made by 23 public entities, including Denver's school district, and found that localities could have saved an average of 17% on items such as Elmer's glue, Amazon-brand copy paper, Lysol cleaning wipes, and Crayola crayons.
The Institute for Local Self-Reliance claims that Amazon has persuaded cities and schools to abandon competitive bidding in favor of its dynamic pricing system, which subjects buyers to erratic price swings. The report alleges that this opaque system allows Amazon to covertly inflate prices and overcharge schools and cities.
For example, a Denver school district order for dry-erase markers resulted in two separate orders at vastly different prices – $114.52 and $149.07. Similarly, in Iowa City, a similar product was ordered by two employees on the same day, with one paying nearly twice as much as the other.
Amazon disputes the findings of the report, saying that it offers everyday low prices that meet or beat those of competitors. However, the company acknowledges that its platform includes tools to lower spend and allows customers to search for and purchase supplies from certified local businesses in their area.
The non-profit is calling on local and state governments to ban dynamic pricing in public procurement and prioritize independent, local businesses for supply needs. The report highlights the rapid, digital procurement approach of Amazon as less transparent than older methods, which included publicly solicited bids and multi-year commitments from suppliers.
A recent report by the non-profit Institute for Local Self-Reliance has found that schools and local governments across the US are overpaying for basic supplies due to contracts with Amazon's dynamic pricing system.
According to the study, these districts could have saved billions of dollars if they had locked in the lowest prices offered by Amazon. The report analyzed data from 55,000 purchases made by 23 public entities, including Denver's school district, and found that localities could have saved an average of 17% on items such as Elmer's glue, Amazon-brand copy paper, Lysol cleaning wipes, and Crayola crayons.
The Institute for Local Self-Reliance claims that Amazon has persuaded cities and schools to abandon competitive bidding in favor of its dynamic pricing system, which subjects buyers to erratic price swings. The report alleges that this opaque system allows Amazon to covertly inflate prices and overcharge schools and cities.
For example, a Denver school district order for dry-erase markers resulted in two separate orders at vastly different prices – $114.52 and $149.07. Similarly, in Iowa City, a similar product was ordered by two employees on the same day, with one paying nearly twice as much as the other.
Amazon disputes the findings of the report, saying that it offers everyday low prices that meet or beat those of competitors. However, the company acknowledges that its platform includes tools to lower spend and allows customers to search for and purchase supplies from certified local businesses in their area.
The non-profit is calling on local and state governments to ban dynamic pricing in public procurement and prioritize independent, local businesses for supply needs. The report highlights the rapid, digital procurement approach of Amazon as less transparent than older methods, which included publicly solicited bids and multi-year commitments from suppliers.
I mean, if you lock in the lowest price offered, you save billions of dollars, right? But nope, they're too lazy to do that. And now they're blaming Amazon for not making it easy enough for them to find good deals 
It's just common sense to shop around and compare prices... especially when it comes to something as basic as glue or paper 
schools are getting ripped off big time by amazon's crazy pricing system. like, i get that they wanna save a buck, but 17% off is not the same as actually getting a good deal. and honestly, who needs to play around with prices like that? just give me a stable price and ill be happy 
. and whats up with amazon trying to convince cities and schools to ditch competitive bidding altogether? sounds like they're just trying to control the market 
! Schools are getting ripped off by Amazon's dynamic pricing system and it's not even like they're getting a good deal. I mean, who wants to deal with price swings all the time? It's just too much of a hassle. And what really gets my goat is that they're overpaying for basic supplies like glue and crayons. 17% on those items? That's crazy talk! 
Amazon's dynamic pricing system sounds super sketchy 
. It's like they're playing price games with the money meant for our schools 
. Can you imagine if they did that to everyday people shopping on their own? 
Not cool, Amazon 
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. They know what people need in their community better than some big corporation 
.
. Time to speak up and demand change 
!
news! Can you believe that US schools are overpaying billions on basic supplies because of Amazon's dynamic pricing system? It's wild to think that they could have saved so much money if they just locked in the lowest prices offered by Amazon. I mean, who doesn't love getting a good deal, right? 
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. We should be supporting local businesses that don't play dirty like this... or better yet, we could just cut out Amazon altogether and save ourselves some serious cash 