In the day-to-day reality of any eCommerce business, it is common to come across prices that seem almost impossible. Products sold far below market level, competitors cutting margins aggressively, or unknown sellers entering with unrealistically low prices. The question quickly arises: is this simply an aggressive pricing strategy, or is it dumping?
Dumping is one of the most silent and damaging problems in digital commerce. It erodes margins, distorts competition and confuses consumers, who no longer know the real value of a product. For brands and retailers, identifying it early is essential to protect profitability and avoid entering price wars that should never have started.
In this article, we help you understand what dumping really is in eCommerce, how to distinguish it from aggressive pricing strategies, and most importantly, how to detect it and protect your business.
What Is Dumping in eCommerce and Why Is It a Growing Problem?
Although dumping is traditionally associated with international trade, in eCommerce it takes on a more practical and everyday form: selling products below their real market cost with the aim of pushing competitors out and dominating a category.
Unlike a temporary discount or a seasonal promotion, dumping is characterised by three key elements:
- Persistence: abnormally low prices maintained over a prolonged period.
- Competitive intent: the goal is not to clear stock, but to gain market share by eliminating competitors.
- Market distortion: it forces other sellers to match unsustainable prices.
On marketplaces such as Amazon, Miravia or eBay, where competition is intense and visibility is closely tied to price, this phenomenon has become increasingly common. A seller using artificially low prices can undermine the reference price of an entire category, affecting both small retailers and established brands.
Dumping vs Aggressive Pricing Strategies: Not Always the Same Thing
It is important to clarify that not every low price is dumping. In eCommerce, there are many legitimate situations in which a seller may offer aggressive pricing.
When a low price is completely normal
- Clearance of old or discontinued stock.
- Temporary promotions aimed at gaining visibility.
- Market entry strategies for new sellers.
- Discounts based on operational efficiency, as some sellers have lower logistics costs.
In all these cases, low prices have a clear and sustainable rationale.
Signs There May Be Dumping Behind the Price
- The product is sold far below the recommended retail price with no clear justification.
- The seller maintains that price even when it appears unprofitable.
- Price differences between channels, such as Amazon versus the brand’s own store, are excessively large.
- The price breaks historical market levels abruptly and repeatedly.
The key is identifying whether a low price responds to a logical strategy or whether it is designed to disrupt competitive balance.
How to Detect Dumping in eCommerce: Key Signals and Metrics
Detecting dumping is not easy if you only look at the market occasionally. Most warning signs only appear when data is analysed continuously. Some of the key metrics and patterns to monitor include:
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Sudden price drops with no clear context
If a seller cuts prices by 30 or 40 percent overnight without any active campaign, this is often a red flag.
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Prices below estimated cost
Comparing the current price with recommended retail prices, historical market data or known minimum sector costs helps identify when something does not add up.
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Unknown competitors with unrealistically low prices
A common dumping pattern is the sudden entry of new sellers offering prices far below the rest of the category.
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Abnormal patterns only visible through continuous monitoring
- Extremely low prices during specific hours.
- Repeated drops following weekly cycles.
- Excessive price differences between marketplaces.
These behaviours can only be detected with tools that analyse prices in real time and over historical periods.
Why Price Intelligence Is Key to Detecting Dumping Before It Hurts Your Revenue
Dumping is rarely obvious at first glance. It is detected through data. That is why more and more brands and retailers rely on price intelligence tools to monitor competitors, identify abnormal behaviour and anticipate risks before margins are affected.
Price intelligence provides a much broader view of the market and makes it possible to:
- See in real time when a competitor cuts prices aggressively.
- Analyse historical data to determine whether the behaviour is isolated or systematic.
- Identify suspicious patterns that may indicate hidden dumping practices.
- Make decisions based on objective data rather than assumptions or impulsive reactions.
However, its real value is not limited to defensive price cuts. When used strategically, price intelligence also helps identify opportunities to increase prices when market conditions allow, without losing competitiveness or visibility.
In many cases, increasing the price of a product by just a few cents may seem irrelevant on a single sale. Yet when applied consistently across a large catalogue and over weeks or months, that small adjustment can translate into a significant improvement in overall profitability. The key lies in knowing when that margin exists and acting with confidence, always supported by real market data.
With this level of visibility, price management stops being a late reaction to aggressive moves and becomes a proactive revenue optimisation strategy, capable of protecting margins and improving long-term profitability.
