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Pricing and Retail Definitions for eCommerce

Price dumping

Category/tag: Pricing

Added 19.09.2022

Price dumping involves a price measure or pricing of a company in which the classic, commercial calculation is overridden: The price is intended to undercut that of the competition and is often set very low. In the course of this, the manufacturer has to accept a loss in order to increase its market share. The measure is generally seen as rather controversial. The focus is on increasing market share or even squeezing out competitors. These often have a low level of capital, which is usually not able to withstand the predatory competition. This measure is also known in the international arena. As a countermeasure, market monitoring is carried out by legal foundations and competition authorities.