What happened

Analysis by the Institute for Local Self-Reliance (ILSR) of tens of thousands of purchases by 128 U.S. school districts and local governments using Amazon Business found large, unpredictable price differences for identical items, even when bought on the same day. 

For example, a Colorado city bought a 12‑pack of Sharpie markers for about $8.99 while a nearby school district paid $28.63 for the same product the same day. The same district paid over four times more for an identical stapler a few days apart from different Amazon sellers. 

Across roughly 2,500 frequently ordered items such as paper, glue, pens and cleaning wipes, districts and localities spent around $3 million but would have paid about $2.5 million if they had consistently received Amazon’s lowest prices, implying average overpayment of about 17 percent and sometimes peak prices more than double the lowest available.

Why it happened

Many school districts and local governments have shifted from traditional competitive bidding and fixed‑price contracts with local suppliers to broad purchasing agreements with Amazon Business that rely on opaque, algorithm‑driven dynamic pricing. 

These contracts often do not guarantee fixed price lists or transparent price‑setting, and pricing can change in real time based on Amazon’s internal data, inventory, and perceived "willingness to pay", making it hard or impossible for public buyers to see whether they are getting the best available price, compare offers, or lock in reasonable ceilings. 

Furthermore, Amazon's dominance in the market allowed it to sidestep traditional safeguards meant to protect public funds. 

Amazon disputes the criticisms, arguing that the report is flawed and that its overall prices are lower than other major retailers, but it does not provide the granular transparency needed for public oversight of specific transactions and fluctuations.