The fierce competition in the e-commerce market means that there is a real price war in many branches. Sellers who want to acquire consumers with attractive prices should not forget that, first of all, the business must be profitable. So how do you keep a balance between the competitiveness and profitability of an online store? The solution may be related to dynamic pricing platforms, which we will talk about in this article.
We live in a world where traditional pricing methods (e.g., cost-plus) are no longer effective. Sellers that want to thrive online need to look for more advanced solutions. Is dynamic pricing such a solution? Let’s find out.
Dynamic pricing – how does it work?
Intelligent repricing tools help you analyze the market and competitors’ activities. Thanks to such solutions, you do not have to waste time monitoring the situation in other stores and constantly adjusting your own pricing policy to them. The terms of transactions on e-commerce websites are changing all the time, so such a strategy would be doomed to failure.
Competitor price monitoring software automates the entire process and collects product data from all sellers operating in the same sector. It then compares them to your assortment, providing you with information on how your store looks against the market and the competition. However, this is just the beginning because such knowledge requires appropriate reactions.
This is where the dynamic repricing function will come in handy. The software uses that data and the predefined rules that you set to adjust the prices of your products to the market conditions. The whole operation is lightning fast and perfectly optimized. You can set requirements such as the minimum margin or desired position among top sellers in the configuration.
How to implement dynamic pricing
Competitor price monitoring and dynamic repricing functions can be found in various e-commerce platforms, such as Prestashop or Magento. They can also take the form of external tools intended for the most demanding users. If you have a large product base, you should decide on the latter solution.
When you choose a program tailored to your needs, you will quickly find that it is really easy to use. All you need to do is set the tool’s operating range and select the data you are interested in. Your competitor price monitoring software will do the rest. Depending on your configuration, it will analyze:
- A specific product
- A group of products
- Your entire assortment
- Selected brands, etc.
Such a tool can also extract data from various channels, providing you with information on:
- The entire market
- Competitive online stores
- Price comparison websites
- Marketplaces, etc.
Dynamic pricing software frequently uses artificial intelligence algorithms that are based on unique product codes. These algorithms use the obtained data to optimize the prices of your products. This will help you gain buyers’ interest while still ensuring sufficient profit margins. Competitor price tracking software is, therefore, a guarantee of the online store profitability and is one of the easiest ways to increase sales.
What competitor price monitoring software should you choose?
You will find many various programs for competitor price tracking and dynamic pricing on the market. How do you know which one will work best for you? Before choosing a specific tool, consider the basic aspects of your own business. For example, answer the question from which channels you want to obtain the pricing data. Are you only interested in competitive online stores or also sellers’ offers from external shopping platforms and comparison engines? Moreover, you should decide whether you only need information about prices or other transaction terms as well (e.g., stock status or delivery options).
When choosing competitor price monitoring software, make sure that it collects data from the entire market as well as your direct competitors. This will allow you to optimize the prices of products in the store. Also, pay attention to aspects such as the clarity of the interface, the availability of automation features, as well as the price of the subscription.
If you’re looking for an inexpensive yet functional dynamic repricing tool, give Dealavo a try. It will allow you to track prices, availability, and visibility of products on the web. With its help, you will automate the product pricing process and find out which items are worth adding to your assortment.
Use competitor price tracking and dynamic repricing functions in your online store!
Automating monitoring and pricing in your store is a double benefit. On the one hand, you get the guarantee that the cost of the products is both attractive to buyers and profitable for you. On the other hand, you save time that you can spend on issues that definitely require your attention more. While intelligent software will help you manage the pricing policy, you can, for instance, conduct marketing activities and plan your brand expansion. Do not hesitate then and check what Dealavo has to offer.