Post on 11-Apr-2017
Let’s find out:
1. Why it’s worthy to monitor prices of your competition
2. How to use monitoring to find new market opportunities
3. How to set prices in your online shop to maximize sales and profits
Price monitoring
E-tailers should monitor prices to get the pricing strategy right
and to identify new business opportunities.
Price intelligence tool
The volume of data produced in e-commerce is so vast and volatile
that it’s impossible to analyze it in a conventional way. Price
intelligence software uses advanced algorithms to measure data
effectively which can immediately bring profits to e-tailers.
CASE 1: increase slightly the price and your product will remain the cheapest anyway,this way you’ll increase your margin
You offer the lowest price
on the market and the price
difference between your
offer and competitors’ offers
is high.
CASE 2: raise prices to maximize your margin
You are an exclusive seller
of the product at the
moment. This way you can
dictate the price.
CASE 3: increase prices to maximize margin for customers who value product availability
You are the only one who
has the product on stock at
the moment while your
competitors have problems
with product availability.
CASE 1: decrease slightly your prices and become a leader
Sometimes the difference
between your offer is so
small that you can decrease
it slightly to go to the top.
This way you can attract
more clients to your store
and increase sales.
CASE 2: decrease prices of popular products
Attract customers with
popular product and sell
them more
suggest the purchase of other, complementary goods with higher margin
What else can be done?
1. Integrate your online store
with monitoring tool and prices
will change automatically
3. Keep on eye on sales and
margins increase
2. Analyze which rules to apply to
automatic price changes
For example:
- Define minimum prices
- Set your place in ranking
- Set the rules of price increase