Amazon’s dynamic pricing is causing chaos for school budgets | The VergeSkip to main contentThe homepageThe VergeThe Verge logo.The VergeThe Verge logo.TechReviewsScienceEntertainmentAIHamburger Navigation ButtonThe homepageThe VergeThe Verge logo.Hamburger Navigation ButtonNavigation DrawerThe VergeThe Verge logo.Login / Sign UpcloseCloseSearchTechExpandAmazonAppleFacebookGoogleMicrosoftSamsungBusinessCreatorsMobilePolicySecurityTransportationReviewsExpandLaptopsPhonesHeadphonesTabletsSmart HomeSmartwatchesSpeakersDronesScienceExpandSpaceEnergyEnvironmentHealthEntertainmentExpandGamesTV ShowsMoviesAudioAIVerge ShoppingExpandBuying GuidesDealsGift GuidesSee All ShoppingCarsExpandElectric CarsAutonomous CarsRide-sharingScootersOther TransportationFeaturesVideosExpandYouTubeTikTokInstagramPodcastsExpandDecoderThe VergecastVersion HistoryNewslettersExpandThe Verge DailyInstallerVerge DealsNotepadOptimizerRegulatorThe StepbackArchivesStoreSubscribeFacebookThreadsInstagramYoutubeRSSThe VergeThe Verge logo.Amazon’s dynamic pricing is causing chaos for school budgetsComments DrawerCommentsLoading commentsGetting the conversation ready...NewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsPolicyClosePolicyPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All PolicyTechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechAmazon’s dynamic pricing is causing chaos for school budgetsA new report found that Amazon is charging schools thousands of dollars more for supplies due to algorithmic price changes.A new report found that Amazon is charging schools thousands of dollars more for supplies due to algorithmic price changes.by Stevie BonifieldCloseStevie BonifieldNews WriterPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Stevie BonifieldDec 4, 2025, 7:40 PM UTCLinkShareIllustration by Alex Castro / The VergeStevie BonifieldCloseStevie BonifieldPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Stevie Bonifield is a news writer covering all things consumer tech. Stevie started out at Laptop Mag writing news and reviews on hardware, gaming, and AI.School districts are paying extra for basic supplies thanks to unpredictable dynamic pricing on Amazon, which is costing them on average 17 percent more, according to a report by the Institute for Local Self-Reliance (ILSR). Unlike the contracts schools and local governments would traditionally make with local suppliers, who would bid to offer the best rates, Amazon Business doesn’t guarantee locked-in prices, resulting in huge pricing swings.For instance, the report mentions an employee of the City of Boulder, Colorado who purchased a 12-pack of Sharpie markers for $8.99, while an employee of the nearby Denver Public Schools was charged $28.63 for the same product on the same day. ILSR cites similar price fluctuations for Crayola markers, Kleenex tissues, Expo dry erase markers, Elmer’s school glue, and more.ILSR takes issue with Amazon’s lack of transparency around how these price changes are calculated by its algorithm, and what triggers different prices for different buyers. However, it seems like the more often an item is ordered, the more significant the price fluctuations can be. ILSR found that “among the 100 most frequently ordered products, the highest prices Amazon charged were, on average, 136 percent higher than the lowest.”As the report points out, Amazon Business has also reduced competition for these necessary school and office supplies, cutting down the number of independent suppliers from 1,300 to 900 over the past decade. A price comparison of commonly-purchased school supplies found that an independent supplier was able to beat Amazon’s prices on 68 percent of products.A separate study published last month found that Amazon offers on average 14 percent lower prices than 23 other leading U.S. retailers. In the case of state and local governments, though, that doesn’t necessarily reflect lower prices that could have been negotiated with local independent suppliers, such as bulk discounts, especially compared with the peak prices from Amazon’s dynamic pricing.Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Stevie BonifieldCloseStevie BonifieldNews WriterPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Stevie BonifieldAmazonCloseAmazonPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All AmazonNewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsPolicyClosePolicyPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All PolicyTechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechMost PopularMost PopularCrucial is shutting down — because Micron wants to sell its RAM and SSDs to AI companies insteadSteam Machine today, Steam Phones tomorrowApple’s head of UI design is leaving for MetaAntigravity’s 360-degree drone is here to help you forget DJIBMW iX3 first drive: a ‘New Class’ is in sessionThe Verge DailyA free daily digest of the news that matters most.Email (required)Sign UpBy submitting your email, you agree to our Terms and Privacy Notice. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.Advertiser Content FromThis is the title for the native adMore in NewsAmazon is reportedly ready to drop its USPS deal if negotiations fall throughAmazon’s new color Kindle Scribe launches on December 10thBoost your AirTag’s battery life to five years with this waterproof caseOnePlus 15 launches US preorders after delayed FCC clearanceMeta could ax up to one-third of its ‘metaverse’ budget next yearProton now has an end-to-end encrypted spreadsheet appAmazon is reportedly ready to drop its USPS deal if negotiations fall throughStevie BonifieldTwo hours agoAmazon’s new color Kindle Scribe launches on December 10thJay PetersTwo hours agoBoost your AirTag’s battery life to five years with this waterproof caseAndrew Liszewski4:00 PM UTCOnePlus 15 launches US preorders after delayed FCC clearanceDominic Preston4:00 PM UTCMeta could ax up to one-third of its ‘metaverse’ budget next yearEmma Roth3:39 PM UTCProton now has an end-to-end encrypted spreadsheet appJess Weatherbed3:15 PM UTCAdvertiser Content FromThis is the title for the native adTop StoriesAn hour agoGoogle’s AI model is getting really good at spoofing phone photos60 minutes agoMicrosoft is quietly walking back its diversity efforts12:00 PM UTCThe future of country music is here, and it’s AI3:00 PM UTCAnthropic’s quest to study the negative effects of AI is under pressureVideoDec 3BMW iX3 first drive: a ‘New Class’ is in sessionDec 3One day, AI might be better than you at surfing the web. 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Amazon’s dynamic pricing is causing chaos for school budgets. A recent report by the Institute for Local Self-Reliance (ILSR) highlights significant fluctuations in the cost of school supplies due to Amazon’s algorithmic price changes. The core issue centers on the lack of guaranteed, locked-in prices offered by Amazon Business, contrasting sharply with traditional contracts secured through local suppliers who would bid for the best rates. The report details instances where price volatility resulted in substantial discrepancies for identical items purchased simultaneously by different school districts—such as a 12-pack of Sharpie markers costing $8.99 for one buyer and $28.63 for another, both within the same day. ILSR’s findings extend beyond a single example, citing price swings for Crayola markers, Kleenex tissues, Expo dry erase markers, Elmer’s school glue, and more. The organization argues that Amazon’s opacity regarding the calculation of these price changes—particularly the trigger points for price fluctuations and the frequent ordering patterns that influence them—contributes to the instability. Notably, the algorithm appears to respond to increased demand, with “among the 100 most frequently ordered products, the highest prices Amazon charged were, on average, 136 percent higher than the lowest.”

Furthermore, the report links Amazon Business’s dynamic pricing to reduced competition within the school supply market. Over a decade, the number of independent suppliers has decreased from 1,300 to 900, effectively diminishing the bargaining power of these local businesses. A comparison of commonly purchased school supplies revealed that independent suppliers were able to beat Amazon’s prices on 68 percent of products. This reduced competition, paired with the algorithmic pricing, exacerbates the problem for school districts. While Amazon offers an average 14 percent lower price than 23 other leading U.S. retailers, this figure doesn't consider the potential for negotiated bulk discounts or the benefits of long-term contracts that independent suppliers could provide. The data underscores the vulnerability of school budgets to a system driven by real-time market demands rather than stable, secured pricing.