Price Matching Explained: A Retailer’s Perspective

According to the eMarketer Global Voices Survey (Nov 2024), price remains the #1 factor (35.5%) in online shopping decisions. 

That’s why price matching is critical for retailers. It helps businesses keep sales in-house and build customer trust by guaranteeing the best available price. Price matching targets price-sensitive customers who are highly responsive to minor changes in pricing. 

But here’s the catch: you can’t match what you don’t monitor. Manually tracking competitor prices is a nightmare—prices change constantly, and missing even a single update could cost you sales.

That’s where a price monitoring solution like MetricsCart comes in. Our real-time tracking ensures you always know when competitors drop their prices, adjust your pricing strategy, and confidently offer price matching without eroding profits. 

What is Price Matching?

Price matching is when retailers promise their customers to match or beat the price if they can find an identical product at a cheaper price in a competitor’s store.

When customers produce proof of a lower price to the store that accepts price matching, the store adjusts the price accordingly to win over customers.

Price matching is an ethical retail practice (in physical and online stores) that applies to identical products with no particular USP. It is common in retail categories such as home decor, electronics, and appliances, where brand competition is high.  

Broad Price Matching Rules Retailers Follow

Here are some price-matching rules followed by retailers using this strategy:

• The product must be the same make, model, size, and color and in stock at the competitor. No substitutes or different variants.
• Customers have to get the proof of competitors’ lower prices that they wish to price-match, such as a printed advertisement, a link or screenshot of an online listing, or a current catalog. The store will verify the competitor’s price.
• The product is to be shipped and sold by the retailer and not third-party sellers.
• Price matching typically applies to new, unopened products (no used or refurbished items) at a current advertised price. Expired sales or clearance/closeout deals are often excluded.
• Many stores limit price matching to one item per customer or transaction. They also reserve the right to restrict large quantities to prevent resellers from exploiting the policy.

Types of Price Matching

Retailers who practice price matching strategy alter the prices of goods primarily through competitor price monitoring. There are three approaches to price matching:

Standard Price Matching

In standard price matching, retailers set the same price for a product as competitors. If a shopper finds the same item cheaper at another online store, they can request the e-commerce platform to match that price before purchasing.

For example, if Amazon lists a laptop for $900, but Best Buy sells the same model for $950, Best Buy’s price match policy may allow a customer to request that price before checking out. 

Standard price matching doesn’t undercut the competitor; it just eliminates the price difference, so the customer has no reason to leave. This straightforward approach is widely used by big retailers.

Price Protection

Price protection is a post-purchase form of price matching. This type of price matching occurs when a retailer offers a discount on a product after a customer makes a purchase (say, after a month). In this case, the price difference is refunded to the customer upon producing the proof of purchase.

For instance, if you purchased a laptop and within 30 days, the store itself or a competitor puts that laptop on sale for less, you can claim a refund for the difference.

The store essentially matches the new lower price retroactively and gives you back the savings. This type of price matching assures customers that they won’t miss out on a better deal shortly after buying. Many retailers set a time limit (often 14 or 30 days) for such adjustments.

Price Beating

Price beating (sometimes called a price beat guarantee) takes price matching one step further. Instead of just matching a competitor’s lower price, the retailer promises to beat it by a certain amount. Here, retailers monitor competitor prices in real-time and price their products lower than other retailers.

Examples of Retailers Offering Price Matching

Many major retailers have price-match guarantees or similar policies. Let’s look at some real-world examples of how prominent companies implement price matching.

Walmart’s Price Match Guarantee

Walmart has experimented with price matching for years. In 2014, it launched a tool called Savings Catcher in its app. This tool automatically compares Walmart’s receipt to competitors’ prices and refunds the difference. The tool was popular, but Walmart discontinued Savings Catcher in 2019 after achieving its goal of assuring customers they get low prices​. 

Currently, Walmart’s price match policy has been more limited. It will only match prices on its website for identical items if the Walmart.com price is lower than the in-store price. Walmart generally does not match the prices of other retailers, not even competitors like Amazon or Target. 

• Walmart’s price matches only their online sites, where the current advertised price of a branded product is lower than Walmart’s selling price in stores.
• Price match period: Within 7 days
• Accepted proof: The item’s listing on Walmart.com (shown on your phone or a printout) showing the lower price. Store associates will verify the online price and availability.
• Limitations: The item must be identical and in stock on Walmart.com. No matching of third-party marketplace sellers on Walmart.com or special sale prices (e.g. Black Friday deals, clearance events). 
• Highlight: Price matches against top online competitors and reinforces Walmart‘s “everyday low price” guarantee.

Price Match Guarantee at Target

Target’s price match guarantee applies to qualifying items bought at Target’s physical stores, its online store, selected online competitors, or competitors featuring lower prices in local print ads. In 2024, Target simplified its list of competitors for price matching to just two: Amazon and Walmart​. 

This is a significant change from its previous policy, which allowed matches from 29 different retailers! Target likely narrowed the list to make the process simpler and to focus on its main rivals. Here is how Target’s price match works now:

• Target’s prices match those of Amazon and Walmart for identical items​. Target will also match lower prices found on Target.com itself or in local print ads from other stores. 
• Price match period: Customers can request a price match at the time of purchase, or if they find a lower price after buying, Target will adjust the price within a 14-day window.
• Accepted proof: In-store at Target, you can show a smartphone display or printout of the Amazon/Walmart price. The cashier can verify Target’s online prices directly. If using a local ad, bring the advertisement. For purchases on Target.com, you can contact Target Guest Services with proof of the lower price.

• Limitations: The item must be identical and in stock at the competitor. Target will not match prices from third-party sellers. They also exclude clearance, closeouts, damaged/used items, bundle offers, and special sales like Black Friday promotions. Target won’t match expired ads or require membership discounts. 

• Highlight: Target allows one price adjustment if Target’s price drops within 14 days of purchase. If the product is out of stock, the company offers a rain check for 30-45 days at the same day’s sale price if it is restocked.

Price Match Guarantee of Best Buy

Best Buy offers both a standard and a retroactive price match guarantee, reinforcing customers’ confidence that they are getting the best possible deal on electronics. Best Buy was the first retailer to price match with Amazon to combat “showrooming”. 

Their policy is to match prices from a list of major competitors, ensuring its customers don’t feel they have to go to a rival for a better price​.

• Best Buy’s price matches all local retail competitors (stores in your area) and about 20 major online retailers. 
• They include Amazon, Abt, Apple, B&H Photo Video, BJ’s Wholesale Club, BrandsMart USA, Conn’s, Costco, Crutchfield, Dick’s Sporting Goods, Home Depot, Lowe’s, Menards, Microcenter, RC Willey, Sam’s Club, Nebraska Furniture Mart, P.C. Richard, Target, and Walmart.
• Price match period: During purchase or within the return period.
• Accepted proof: Hard copy of the advertisement or website displaying a lower price.
• Limitations: Products on Best Buy education, business, and marketplace stores on a third-party website are prohibited. Excludes clearance, refurbished, and open-box items. Only one price match is allowed per customer at the time of purchase.

• Highlight: If the retailer lowers their price during the return/ exchange period, they will match their lower price upon request.

JCPenney’s Lowest Price Match Guarantee

From price conditioning consumers with discounts to experimenting with the ‘Fair and Square Everyday pricing’ strategy, JCPenney’s price strategy includes a price match guarantee. They advertise a “Lowest Price Guarantee”, which is essentially a price match promise.

• JCPenney’s price matches all stores having a physical and online presence, including Amazon. JCPenney will match local competitors’ store prices or their online prices, as long as the competitor has a brick-and-mortar store. 
• Price match period: Within 14 days
• Accepted proof: An original print ad or a live online advertisement showing the lower price. The item number/model must match. You can bring a printout or show the price on your phone to a JCPenney associate.
• Limitations: The policy excludes certain types of offers. For example, unadvertised in-store clearance prices, coupon codes, or third-party seller prices are not matched.

• Highlight: JCPenney’s price match guarantee has no blackout dates – it’s even valid on Black Friday and year-round.

Lowe’s Lowest Price Guarantee

Lowe’s, the home improvement retailer, offers a Lowest Price Guarantee, which functions as a robust price match policy. Home improvement shoppers often compare big stores like Lowe’s and Home Depot, so price matching is vital in this sector. 

• Lowe’s price matches that of any local or online retailer for identical items. This includes major competitors (Home Depot, Ace Hardware, etc.) and even Amazon or other online stores, as long as the item can be shipped to the customer’s location.​

• Price match period: At the time of purchase, primarily. Lowe’s policy typically matches the price when you buy; however, Lowe’s also has 30-day price protection for its own prices. 
• Accepted proof: Show an associate the competitor’s price. This can be a website shown on your phone, a printout, or a local advertisement. Lowe’s employees will verify the lower price and that the competitor’s item is identical and in stock. Unadvertised in-store prices are not considered.
• Limitation: Lowe’s won’t match installation/labor costs, and certain brands or product lines may be excluded by policy. Brands like Dacor, ICON, Fisher & Paykel, Monogram, SMEG, Liebherr, Weber, Kichler, and Nest do not qualify for the price match.

• Highlight: If an item is purchased before a price drop, Lowe’s adjusts the price on request upon producing the receipt.

Staples’ In-Store Price Match Guarantee

Staples, known for office supplies and electronics, has an In-Store Price Match Guarantee to keep its prices competitive, especially against online giants. Staples caters to both retail customers and small business shoppers who often compare prices with places like Amazon.

• Staples’s price matches Amazon’s (for items sold and shipped by Amazon) and any retailer that sells the identical product in-store or online. In practice, Staples will match major competitors like Office Depot, Walmart, Best Buy, or any store that carries the same item.
• Price match period: Within 14 days
• Accepted proof: Proof of the lower price, such as a website listing or printed ad showing the identical item number and price. 
• Limitations: Staples’ guarantee only applies to purchases made in a Staples store (not Staples.com). Customers can only price-match one item per transaction. Coupons and BOGO offers do not qualify for price matching.

• Highlight: If the competitor’s order includes free shipping, Staples price matches the same amount without charging extra on shipping.

Abt Electronics Price Match Guarantee

Abt has a very broad price match guarantee: “If you find a better price on any product at another authorized retailer, we’ll meet or beat that price.” Though the price matching rules vary slightly, all retailers aspire to achieve the same goal: retaining customers and winning over competitors.

• Abt Electronics matches with both local and online retailers nationwide. They factor in the total delivered price (item price + shipping) when comparing​, ensuring the match accounts for any shipping fees. In short, virtually any legitimate retailer’s price on an identical in-stock product is eligible for a price match at Abt.
• Price Match Timeframe: Abt will honor a price match at the time of purchase, and they also allow requests for up to 30 days after purchase as a price adjustment. 
• Proof Requirements: You need to provide evidence of the lower price. Since Abt doesn’t have a specific form, you can contact customer service by phone, email, or chat to request the match. 
• Limitations: Abt excludes a few scenarios from price matching: loyalty/points-based offers or “reward” prices, coupon or bundle deals, clearance/limited-quantity specials, and post-rebate prices. 
• Highlights: Abt’s policy is one of the most customer-friendly. They even explicitly say they’ll match prices from Amazon and Costco. They also extend a full 30-day post-purchase window for price adjustments, far longer than the typical 7–14 days.

GameStop Price Matching Strategy

GameStop will price-match a few specific major retailers for games and electronics.

• GameStop matches prices from Amazon, Best Buy, and Target – these are the three named competitors that GameStop will honor for identical products (usually video game consoles, new game titles, accessories, etc.)​
• Timeframe: GameStop only offers competitor price matching at the time of purchase.
• Proof Requirements: You should show a current advertisement, printout, or smartphone screen displaying the price on Amazon, Best Buy, or Target for the exact item.
• Exclusions: GameStop’s price match is limited to those three retailers – they will not match other competitors like Walmart or online-only game stores.
• Highlights: GameStop’s price match policy is relatively narrow, focusing on its largest competitors in the gaming/electronics space.

Petco Price Match Guarantee

Petco offers a price match guarantee against any competing pet supply retailers. 

• Petco matches prices with both physical pet stores and major online pet retailers. This includes direct rivals like PetSmart and Chewy, as well as big general retailers (Walmart, Target, Amazon, etc.) that sell pet products.
• Price Match Timeframe: Petco’s policy primarily applies at the time of purchase. When you present the lower price when you’re ready to buy, Petco will adjust the sale price.
• Proof Requirements: You’ll need to show proof of the competitor’s price. In-store, you can bring a print ad or show the product page on your phone (webpage or app) as evidence. Online, you can provide a link or screenshot via chat or email to Petco’s customer service.
• Limitations: Petco will not match clearance sales, closeout or liquidation prices, or coupon-driven discounts​. The policy only covers regular retail prices or sales readily available to all customers.

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Advantages of Price Matching

Boosts Sales

Over 90% of shoppers say price is the top reason they would leave one store and buy from another retailer​. A well-executed price-matching strategy ensures that a lower price elsewhere is not a reason for losing a customer to a competitor.

Increases Consumer Loyalty

When shoppers know that a store will honor the best price, it builds goodwill. Customers are delighted to get the lowest price on their desired product, which boosts return purchases. Price matching shows that the retailer is customer-centric. Over time, consistently offering price matches can enhance the store’s reputation as an honest dealer and foster loyalty. 

Improves Market Share

By keeping price-sensitive customers in-house, retailers can gradually increase their market share. If fewer people leave to buy elsewhere, the retailer sells more units. Even if each sale yields slightly less profit (due to the matched lower price), the volume of sales can grow.

Enhances Brands’ Reputation

Retailers known for price matching often promote themselves as having the “lowest price” or “never beaten on price.” This messaging, when delivered honestly, strengthens the brand image. Customers perceive such brands as price leaders and consumer-friendly. Thus, price matching helps in brand reputation management. 

Disadvantages of Price Matching

Price matching is a powerful strategy to attract customers if used with caution. Here are some reasons:

Reduces Profit Margin

A company willing to match a better price usually has a low-price model. When retailers’ prices match those of their competitors, they may lower the price further than intended, which can reduce profit margins. Small businesses, in particular, may find it hard to match giant competitors’ prices and still make money​. 

Leads to Price Wars

Price matching can sometimes escalate into back-and-forth price cuts among competitors. If one retailer matches another’s low price, that competitor might lower their price even more to regain an edge, and then everyone feels pressure to follow. This can lead to aggressive price wars where prices keep dropping, and no one wins in the sense of profitability. 

Risk of Losing Customers

Relying heavily on price matching might train customers to always hunt for a lower price or ask for a discount. If price becomes the only thing customers care about, they might still defect the moment someone else has a slightly better price that you can’t match. In addition, price matching interrupts customers’ buying process and makes them look into competitors’ shops.

Why Price Monitoring is Essential for Price Matching

One thing is clear: to successfully execute a price-matching strategy, retailers need excellent price monitoring capabilities. It’s practically impossible to honor a price-match guarantee (especially one that includes many competitors) without closely monitoring the market.

That’s where price monitoring tools and services come into play. Retailers need to continuously scan competitor websites, stores, and ads to identify price changes. With thousands of products in a catalog, only an automated system can realistically handle this volume of data.

In short, competitive price monitoring is the backbone of an effective price-matching strategy. It ensures that you stay relevant and reactive in a fast-moving market. Investing in a sound monitoring system or service can make price matching far more efficient and sustainable.

If you are a retailer contemplating implementing a price-matching strategy efficiently, book a demo with MetricsCart to experience our price-monitoring service.

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