Ecommerce is one of the most competitive market sectors, primarily because of the presence of hundreds of ecommerce websites. With so many options for fulfilling essentially a similar role, each ecommerce firm tries out strategies to convert as much customers as possible. These strategies may include attractive discounts or lucrative deals and offers. Some go with the option of pricing products extremely low, incurring losses in the latter or both cases. Such strategies are good for short term market gains but in no case can be sustained for very long.
The more established ecommerce players don’t go either way but instead formulate an entirely different solution called as competitive pricing analysis. This involves analyzing the pricing model employed by different competitors for the same product. Such analysis ensures that that the prices you mark for your product and services with not only allow you ample margin but also keep you competitively relevant in the market. Moreover pricing analysis also boosts your google shopping feed and thus attracts more traffic to your ecommerce portal.
As with other data intensive procedures, competitive pricing analysis too requires data collection, comparison and results which is impossible to be accomplished manually. Naturally, the process needs to be automated via a software algorithm that collects processes and outputs the pricing data automatically.
This is particularly crucial since the analysis isn’t a one-time operation but a periodic cycle that needs to be run regularly so as to not lag behind the competition. Moreover continuous pricing analysis will furnish with you with enough data to optimize your pricing to earn the most revenue on your sale. You can fine tune your analysis software by adding layers like shipping costs, MSRP, discounts given, the actual product price so as to extract the most out of every sale made on the website.