Perhaps I spent too much of my youth watching supermarket-themed game shows, but I'm very much in tune with how much things should cost in supermarkets, and how they vary from chain to chain and region to region.
It was for that reason I started buying my household stuff at Amazon — because I could save a buck or two, per item, which adds up.
Then — as you pointed out — stuff got weird. Amazon's prices became consistently higher than the supermarkets.
Then the third-party sellers started using "AI" pricing, so that a package of soap bars that is $3.59 at Safeway is $61 on Amazon.
Then the counterfeits arrived, and now my family has a policy of not buying anything from Amazon that goes on, or in, our bodies.
These days there are bargains to be had through Amazon, but only through the two-hour shipping from Whole Foods. At least in my market. (A particular cheese that is $15/pound at Kroger is $5/pound when I get it delivered from my local Whole Foods.)
It's not too late to Amazon to regain trust. But it's not going to be a quick or easy process.