To make your ecommerce successful it is necessary to know where your product is positioned in the market. In this case, to spy on the prices of your competitors is necessary in order to implement the right price strategy. The most important factor for the consumer when choosing a product is the cost of it, so adjusting the price without losing the profit margin is the ideal situation for your store in order to be profitable.
Price Intelligence is based on the knowledge of market prices, monitoring and analyzing the behavior of competitors, their influence on the public and the revenue that companies can obtain. It is a basic tool that can be used as software.
Study the competition with competitive price intelligence
Thanks to Price intelligence you can assess the data of your competitors to find out what is the position of your store in relation to the market. Thanks to this tool that allows you to be competitive you can compare the prices of your products with those of the rivals you follow. You are also able to analyze and discover competitors’ patterns and, therefore, adjust your prices based on competition and market state.
The large number of competitors makes setting a price a complicated task. In this sense, competition research can be used to analyze and understand the strategies that they are using to be more competitive such as shipping costs or after sales service. With a Price intelligence software it is possible to process the data and make a price competition ranking to know the position of your store among competitors.
By tracking competition’s prices you can acquire very useful insights for your business. For instance, if the price of your product is way above average and you do not have any more margin to set more competitive prices, perhaps you can try to negotiate better conditions with your suppliers. This and other insights can help you make the right decisions to increase the conversion rate of your e-store.
How does it work?
The software tracks the prices of those products selected on a regular basis in order to make a comparative graph to know where your product stands in relation to the competition. The platform scans the customer’s product feed and automatically matches the products through the EAN code. If this code is not available, the software will still match products based on similarity criteria such as title, image or any other available reference.
How to set prices through Price intelligence?
Spying on your competitors’ prices is necessary step to analyze the state of the market and have the right insights to set the right prices. The pricing strategy you build must be competitive and adjusted to the reality of the market. You can also observe the evolution of the brands, categories or groups of products included in your catalog and benchmark those against rivals to better understand how your store competes in the market.
To establish prices through Price intelligence you must follow these steps:
- Track and assess changes in your competition’s product strategy and prices.
- Build the basis of your pricing strategy (Dynamic Pricing).
- Set prices that allow you to stay competitive without risking your margins.
An effective pricing strategy must always respect profit margins, it is never advisable to risk the latter in order to get high conversion rates. That is why it is important to assess how your store is positioned against competitors at a price, product, brand and stock level.