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Amazon Stops Giving Refunds When an Item's Price Drops After You Purchase It (recode.net) 164

Amazon has for years issued refunds to users when the price of an item drops after they've purchased it. But lately the e-commerce giant hasn't been doing that on a number of products, except for televisions, according to price-tracking companies. Recode reports: The move may have something to do with the rise of startups that track prices for Amazon customers and automatically request refunds when appropriate. One of them, a Santa Monica-based startup called Earny that is backed by the startup incubator Science, first pointed out the change. Earny scours a customer's email inbox for digital receipts, and then continuously checks the price on a retailer's website to see if it drops.
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Amazon Stops Giving Refunds When an Item's Price Drops After You Purchase It

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  • What? (Score:5, Insightful)

    by U2xhc2hkb3QgU3Vja3M ( 4212163 ) on Monday May 23, 2016 @03:41PM (#52167393)

    Earny scours a customer's email inbox for digital receipts...

    Yeah.... no.

    • by Anonymous Coward

      Same here. No! I am NOT giving you access to my inbox.

      • Re:What? (Score:5, Insightful)

        by 93 Escort Wagon ( 326346 ) on Monday May 23, 2016 @03:49PM (#52167453)

        I'm sure lots of people do, though. Heck, look at all the people who don't even blink an eye before allowing Facebook full access to the contact list they have on their personal computer - and that's not even promising to save them a few cents.

        • Two things:

          1. Having access to who I know is not at all the same risk scenario as having access to what I spend and by extension what I own, my home address, and that's just assuming they ignore the rest of the emails and don't also scour the banking password reset links or any other things that are sensitive and really shouldn't be sent via email in the first place.

          2. Saving a few cents does not compare to providing a large scale service for keeping up with what is happening in your social group. Despite w

      • Re:What? (Score:5, Interesting)

        by EvilSS ( 557649 ) on Monday May 23, 2016 @04:36PM (#52167789)
        Just setup a gmail account specifically for amazon.
        • by epyT-R ( 613989 )

          Why? Amazon is doing this because of 'Earny'. Amazon is not the one scouring your mailbox. However, it is amazon's fault for playing with variable pricing schemes. Earny showed up to even the playing field.

          • by EvilSS ( 557649 )

            Why? Amazon is doing this because of 'Earny'. Amazon is not the one scouring your mailbox. However, it is amazon's fault for playing with variable pricing schemes. Earny showed up to even the playing field.

            A condition was proposed where the OP didn't want his mailbox scanned 24x7. A work around was proposed to send the emails that the 3rd party wanted to scan, emails from Amazon but scanned by Earny, to a sandbox account specifically setup for that purpose. This would allow the user to use Earny (or would have, RIP Earny) while maintaining as much privacy as possible while still benefiting from the Earny app.

        • Comment removed based on user account deletion
          • by cdrudge ( 68377 )

            Gmail allows you to also do this even if you don't have your own domain. You can create virtual email addresses in the format of username+whatever@gmail.com. If the "whatever" account ever gets compromised, spammed, etc just set up an filter to automatically delete it (or at least categorize it as spam). It'll still show up in your inbox normally so you're not having to manage multiple email accounts either.

            • But the spammer can/will easily filter out the +whatever part.

            • by EvilSS ( 557649 )

              Gmail allows you to also do this even if you don't have your own domain. You can create virtual email addresses in the format of username+whatever@gmail.com. If the "whatever" account ever gets compromised, spammed, etc just set up an filter to automatically delete it (or at least categorize it as spam). It'll still show up in your inbox normally so you're not having to manage multiple email accounts either.

              Yea but a lot of sites throw a hissy fit if you try to use one an address with a + in it. Annoying as hell since it's a perfectly valid email address if you go by the published standards. Plus it doesn't fix the OP's issue of not having Earny or some other app like it scan his entire email box looking for Amazon purchase emails.

        • Just setup a gmail account specifically for amazon.

          Word. That's what I do: one for shopping (amazon, ebay, paypal), one for social media (facebook and linkedin), and one for personal usage, and another my wife and I share for school activities, all gmail. A couple for MS tool registration at hotmail/msn, and another at yahoo that I use whenever I suspect someone is trying to spam me (said account is aptly named is spirit of one's rear orifice.) Each with a different password (which is a burden, but not an impossible one.)

          For the general population, two ac

    • by mysidia ( 191772 )

      Yeah.... no.

      How about you create a second dedicated e-mail account, so you give Earny the creds to a different account instead of your main one, and setup rules to auto-forward e-mails that you want earny to take a look at?

  • to ask for the refund, however, when a larger number of customers started asking for the refund, then it was no longer cost-effective.
    • by JackieBrown ( 987087 ) on Monday May 23, 2016 @03:56PM (#52167505)

      to ask for the refund, however, when a larger number of customers started asking for the refund, then it was no longer cost-effective.

      I agree. Once of those things we lost due to other companies leaching off of them.

      If that happened for every sell, then there would never be price drops.

      My price doesn't go up if the cost is raised. Why should it go down if lowered?

      • by dj245 ( 732906 ) on Monday May 23, 2016 @04:09PM (#52167621) Homepage

        to ask for the refund, however, when a larger number of customers started asking for the refund, then it was no longer cost-effective.

        I agree. Once of those things we lost due to other companies leaching off of them.

        If that happened for every sell, then there would never be price drops.

        My price doesn't go up if the cost is raised. Why should it go down if lowered?

        In general, I agree with you, but Amazon has set up a system where it is easy to play games with pricing. I've seen differences depending on if I am logged in or not, which account I am logged in under, whether I am logged in on a "prime" account or not, and other shenanigans. Prices seem to sometimes be higher or lower depending on how long something has been in a wish list or cart. Amazon and their vendors are certainly gaming the system (which they created for their own benefit) and showing no mercy, fairness, or common courtesy in the pursuit of separating me from my hard-earned money. You can be assured that these pricing games are not for your benefit. In that kind of environment, why wouldn't a person use every means available to try to get a the best possible deal?

        • Welcome to the world of dynamic pricing. Once all the on-line retailers have a full profile of you and your spending habits, expect to see higher prices if you have a good income and don't clip coupons. It's kind of like appliance repairmen who jack up their estimates if you live in a nice house in a nice neighborhood.
        • Amazon's pricing isn't that sophisticated. They do yo-yo prices on a very regular basis, often-times in concert with changing which 3rd party vendor is sells no the item.

        • by Anonymous Coward

          Moral: if your business model is based entirely on exploiting another company's goodwill, you're screwed. And deservedly so.

    • You mean a large number of robots. Once again, assholes ruin it for everyone else.

    • Frankly, I would prefer having lower upfront costs than access to this perk, which is more like some kind of lottery that unnecessarily complicates their business model.
    • by amicusNYCL ( 1538833 ) on Monday May 23, 2016 @07:06PM (#52168581)

      It seems like abuse of the system to me. Amazon had that policy so that people could feel confident shopping there, knowing that if the price dropped then they could go back and get the difference. Instead, a cottage industry formed specifically to get people all of the price drop refunds any time they happen. That wasn't why Amazon had the policy to start with. If that was what Amazon wanted to do then they would have automatically credited every account every time a price was lowered. That was not their sales plan, the policy was there so that you don't need to wait for a sale. If you buy something that goes on sale next week then instead of feeling burned Amazon can generate a little customer goodwill and loyalty by giving you the difference if you ask. It wasn't supposed to be an automated process.

      Personally, if I was in the place of whoever was making those decisions at Amazon I would enjoy changing our policy to put out of business a bunch of companies that I see as freeloading off my customers.

    • Amazon has said (when they were trying to get publishers to agree to lower/variable prices) that their prices are set to generate maximum income, i.e. max profit x volume. You lower the price if you feel more people will buy it to justify the lower price, and Amazon apparently has great algorithms to do that. Now, if people can retroactively get the difference it is still doable if they are just a few so that you can ignore them and "eat" the difference. If many people started to do this with automated serv

  • by FlyHelicopters ( 1540845 ) on Monday May 23, 2016 @04:10PM (#52167625)

    I buy a TON of things from Amazon, I'm a heavy Prime customer...

    That being said, my last three price adjustment requests in the past two weeks have all been denied, which is very odd.

    I do it manually, just when I notice things... I buy at least a half a dozen items a week from Amazon.

    This change will make me think twice before buying as much.

    • by PCM2 ( 4486 ) on Monday May 23, 2016 @04:53PM (#52167877) Homepage

      That being said, my last three price adjustment requests in the past two weeks have all been denied, which is very odd.

      Same. Only time I ever tried it was for a TV -- you know, an item where it would actually be worth getting the difference back -- and they denied it. Said there was no evidence it was retailing for the other price I mentioned, or somesuch (although my receipt might tend to indicate otherwise). I read some reviews and a lot of people apparently had the same experience. The refunds were fulfilled by some third party vendor who was apparently pretty shady (kind of like that godawful OnTrak shipping company that seems to be keeping itself afloat by tossing as many Amazon packages from still-moving vehicles as possible).

    • Re: (Score:3, Interesting)

      by jittles ( 1613415 )

      I buy a TON of things from Amazon, I'm a heavy Prime customer...

      That being said, my last three price adjustment requests in the past two weeks have all been denied, which is very odd.

      I do it manually, just when I notice things... I buy at least a half a dozen items a week from Amazon.

      This change will make me think twice before buying as much.

      You're doing this manually but noticed three price adjustments in a two week period? Are you unemployed? I buy something on Amazon because I don't have the time to go to the store and pick it up. The last thing I am going to do is keep my eye out for price adjustments. If it's something like a TV that will deflate in value over the next year then I just watch the price myself until it's time to pull the trigger - or better yet - use a website to watch the price for me. If I needed it so badly that I co

      • I buy it on Amazon because, even though I do have time to go to the store and pick it up, why would I do that when I could just buy it on Amazon?

        I do agree with you that I'm not likely to price-watch the small stuff -- that's not new to Amazon though. A price adjustment on a big-ticket item has never come up for me.

      • You're doing this manually but noticed three price adjustments in a two week period? Are you unemployed?

        No, I simply do a lot of shopping there and keep an eye on my past purchases.

        About once a week, I take a look at anything over $50 or so that I've bought in the past month and click on it to see the current price.

        Amazon changes prices so often, it isn't hard to catch.

        I've gotten a lot of money back over the years this way.

      • I buy something on Amazon because I don't have the time to go to the store and pick it up.

        I buy stuff on Amazon because going to the store takes time and costs money, I buy very little at stores anymore.

      • You're doing this manually but noticed three price adjustments in a two week period? Are you unemployed? I buy something on Amazon because I don't have the time to go to the store and pick it up. The last thing I am going to do is keep my eye out for price adjustments.

        Some items you only buy one in a great while, and then proceed to forget about them. Other items are consumable and you need to resupply on a fairly regular basis, so checking on the price every week or so is a good way to stock-up when the i

      • I buy a TON of things from Amazon, I'm a heavy Prime customer...

        That being said, my last three price adjustment requests in the past two weeks have all been denied, which is very odd.

        I do it manually, just when I notice things... I buy at least a half a dozen items a week from Amazon.

        This change will make me think twice before buying as much.

        You're doing this manually but noticed three price adjustments in a two week period? Are you unemployed? I buy something on Amazon because I don't have the time to go to the store and pick it up. The last thing I am going to do is keep my eye out for price adjustments. If it's something like a TV that will deflate in value over the next year then I just watch the price myself until it's time to pull the trigger - or better yet - use a website to watch the price for me. If I needed it so badly that I couldn't wait for a price I was happy with, well what's a few dollars, then?

        You do not need to be unemployed (or say, doing nothing) to keep tabs on things. Like with all abilities, some people are better than others.

  • When I buy something with my credit card, the warranty is doubled, it is insured against loss for 90 days, and I get price matching for 60 days (from any retailer).

    Admittedly there are some exceptions, but it's great. Many other credit cards offer similar perks.

  • Earny, by automating it (and siphoning off a percentage), spoiled it for the rest of us.

    This is why we can't have nice things.

  • I remember emailing them over 5 years ago trying to get a price match after they dropped the price on an item a few days after I ordered it. They said they no longer had a price matching policy.
  • That's why I use extensions like keepa, that show the price history of a product on amazon and also lets me set target price alerts. Its like stock trading.

  • While using apps to compare prices on groceries while shopping, it occurred to me that it would seem to be the sort of task an AI would be good at. Right now Siri tries to take you to iTunes when you ask about music, and I imagine Alexa offers to let you order all kinds of things from Amazon, but an AI not tethered to a vendor would be much more useful. It would be extremely disruptive to retailers and advertising would be extremely difficult. Imagine dictating a shopping list to an AI that could compare
  • That's fine. Just do a price match via your credit card. Most of them offer this service for free.

Some people manage by the book, even though they don't know who wrote the book or even what book.

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