American Impact ReviewA Peer-Reviewed Multidisciplinary Journal
Journal
JournalGetting StartedSubmission GuidelinesWhat We PublishWhy Publish With UsSubmit a Manuscript
About
AboutAbout the JournalEditorial BoardPeer ReviewersIndexing & RecognitionAuthor GuidelinesFor ResearchersFor ReviewersEthics & PoliciesContact
Explore
ExploreBrowse ArticlesSubmit a Manuscript
Log inSign up
Browse ArticlesSubmit a Manuscript
JournalGetting StartedSubmission GuidelinesWhat We PublishWhy Publish With Us
AboutAbout the JournalEditorial BoardPeer ReviewersIndexing & RecognitionAuthor GuidelinesFor ResearchersFor ReviewersEthics & PoliciesContact
AccountLog inSign up
American Impact Review
Peer-reviewed, open-access
multidisciplinary journal
Published by Global Talent Foundation
a 501(c)(3) nonprofit
Stay updated
Navigate
AboutFor AuthorsFor ResearchersFor ReviewersPoliciesArchive
Legal & Contact
Privacy PolicyTerms of UsePublication EthicsContact Us
Indexed in:Crossref·Google Scholar·OpenAlex·Wikidata·Scilit
CC BY 4.0 · Open Access
ISSN 3071-124X · EIN: 33-2266959 · Verify on IRS.gov© 2026 American Impact Review
BusinessOriginal ResearchPublished 2/25/2026 · 523 views0 downloadsDOI 10.66308/air.e2026015

Pricing Strategies and Consumer Price Sensitivity in E-Commerce: Evidence From U.S. Online Retailers, 2022-2025

Joon-Hyuk KwonRotman School of Management, University of Toronto, Toronto, ON, Canada
Eleanor V. HartleyPricing Intelligence Division, RetailEdge Analytics, London, United Kingdom
Received 2/3/2026Accepted 2/22/2026
e-commerce pricingprice elasticitydynamic pricingconsumer price sensitivitycharm pricingcart abandonment
Download PDFGoogle ScholarRgResearchGateSemantic ScholarScilit
Cover: Pricing Strategies and Consumer Price Sensitivity in E-Commerce: Evidence From U.S. Online Retailers, 2022-2025

Abstract

Although U.S. e-commerce sales now exceed one trillion dollars annually, cross-category empirical evidence on how different pricing strategies perform under inflationary pressure remains limited. This study examines 36 months of panel data from 89 U.S. online retailers across four product categories (electronics, fashion, grocery, and home goods) using fixed-effects regression and difference-in-differences estimation. The aggregate price elasticity of demand is estimated at -1.34, with pronounced cross-category heterogeneity ranging from -1.72 in electronics to -0.89 in fashion. Dynamic pricing raises revenue by an average of 12.3% but simultaneously increases cart abandonment by 8.7%, revealing an inverted-U relationship between pricing intensity and net gains. Promotional frequency exhibits diminishing returns beyond three events per quarter, while charm pricing improves conversion rates by 3.2% relative to round-number prices. During high-inflation quarters, consumers shift markedly toward value-segment retailers. Taken together, the results indicate that retailers should calibrate pricing tactics by category rather than adopt one-size-fits-all strategies.

Cite asJoon-Hyuk Kwon, Eleanor V. Hartley (2026). Pricing Strategies and Consumer Price Sensitivity in E-Commerce: Evidence From U.S. Online Retailers, 2022-2025. American Impact Review. https://doi.org/10.66308/air.e2026015Copy

Sections

    Article metrics

    Views523
    Downloads0