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Provide an argument for why a variable pricing policy might increase the sales revenue from Amazon's...

Provide an argument for why a variable pricing policy might increase the sales revenue from Amazon's e-commerce (compared to the flat pricing policy).k

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Answer #1

A variable pricing policy is a strategy which might improve Amazon's sale revenue as because in a variable pricing policy pricing varies at different points of sales, Which optimizes profit by giving best price to consumers at each point of sale.

Amazon is an online e-commerce business so the operational cost is much lower and at different location the taxes like property tax And etc maybe competitively low so Amazon can maximise it's sales by offering goods at a lower price resulting in more sales but in a flat pricing policy this wouldn't happen as in flat pricing policy the prices remains same for every customer at every point of sale.

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