How to avoid errors in price monitoring

14/08/2017

Angela de la Vieja

Global ecommerce studies continue to talk about the phenomenon of 'ecommerce boom' with sales figures that continue to grow, new competitors that are constantly appearing in the market and increasingly agile users that compare prices. You just have to see any study, such as that by Credit Suise earlier this year, Many e-Commerce Opportunities Ahead in Emerging Markets, to prove it.

Online selling is not a monopoly; there are dozens of competitors in every sector, from global multinationals to local businesses, from general ecommerce to specialized or niche online stores. An ecommerce is no more than a player within the dynamic and changing universe of the digital business. And, therefore, prices are conditioned by the complexity of that business universe.

In e-commerce, we always seek maximum visibility to attract potential buyers. This visibility is what makes it easier for users to compare prices in a single click in search of the cheapest, most attractive or convenient alternative.

• Do not disconnect from the market and collect information in a systematic way.

To increase sales opportunities, you must be fully connected to the market and have a broad picture of; the players, their products and their pricing policies. You have to analyse the market, do a study of online competition to verify that your prices are appropriate.

It is a common mistake to lose the connection with the market. Those responsible for an ecommerce are always aware of the general actions of the competition, but to be able to react in time it´s necessary to analyse prices of the competition and use technology to track prices, and collect catalogue information and prices in a systematic and agile manner.

Trying to do it manually is somewhat complicated, mistakes are made and it takes a long time. Finally it ends up not being done and so you lose a source of essential information of the movements in competitor’s ecommerce. That is why it is essential to have a competition analysis tool.

• Avoid competition distracting you and compare yourself to who you should

Virtually all e-commerce sectors present a competitive scheme like the following: there is a leader with a dominant position, a challenger who challenges the hegemony of the leader with attack strategies, followers with war strategies and niche players or specialists with vertical strategies.

A common mistake is to compare with all the competitors in the sector, from direct to indirect, from pure players to click and mortar. And having too much data that cannot be properly analysed is like having nothing.

The key is to compare yourself with the right competitor and use competitor price monitoring and catalogue tracking technology to react to competition and increase your sales opportunities.

The price intelligence process must start with the products, focusing first on the assortment of the catalogue that is to be analysed. Once this set of products is bounded it is necessary to go on to define which the specific websites of the competition that need to be monitored are.

Otherwise you may fall into the mistake of monitoring a competitor and get information that does not serve to make any decision, which would end up being more a distraction than a competitive intelligence exercise.

11/11/2022

Consumer behavior: How can behavior tracking be effective for setting the right pricing strategies?

Behavior tracking is becoming massively popular today. As a result, pricing strategies born from studying consumer behavior are a merchant's dream come true. If done right, it can conquer every market for the business quickly. With abundant data available, the strategic makeover of the pricing models is becoming easy for companies.

What is behavioral tracking, and how is the data beneficial in pricing?

For a quick understanding, behavioral tracking refers to gaining in-depth knowledge and insights into consumers through their web data. Their browsing habits, spontaneous decisions, shopping interests, and preferences come under behavioral tracking.

How can enterprises use customer behavior data?

Companies can use customer behavior data as a tool to strengthen their hold on the market. A customer’s preferences, values, and tendencies allow businesses to work in sync with them through the collected data. Apart from this, customer behavior can also aid in:

Tailoring customer needs for customer retention

Personalization is becoming the heart of a company’s growth. No matter in which area an enterprise is functioning, tailoring the services, products, and solutions is becoming increasingly crucial. Uniqueness and personalization attract the crowd like no other.

Increasing the overall value

One of the best ways customer behavior data affects a business is by upgrading the value of customers for the business. The customer’s characteristics allow the company to target the people that match the business prospects well.

Optimizing every type of content

Everything that is up for digital display requires content. You must have seen companies unveiling their products or services through advertisements and making the initial public appearance. Two essential sales strategies – upselling and cross-selling comes through content optimization.

Pricing Strategy

Last but certainly not least is the influence of customer behavior data on the pricing strategy. The pricing strategy essentially constitutes content derived from data analysis. Companies need to have a dynamic approach to the pricing system to attract the right customers.

17/02/2015

Saint Valentine’s Day, always a good opportunity

V-Day is looming, a long-awaited date for all and also a good occasion for the eCommerce. According the study conducted by Prosper Insights and Analytics, it is forecasted the average consumer expense that day will be the highest in last years. Furthermore, 25% of them will buy online, which means an increase of 4% regarding 2014 (The US department of Commerce). This is, therefore, a key date where market competitiveness increase and which could be assumed as a big opportunity for our business or, a big fail if we do not adopt the correct strategies.

How to turn this event into an opportunity? To achieve this goal, we need to adapt our prices to this hostile environment, i.e. we need to develop an appropriate Dynamic Pricing strategy that allows us to adapt our prices to the variations produced in supply and demand and to position us ahead of our competitors. In V-Day, the frequency in changes will be higher, carrying it out each hour or even each minute. It is estimated that 65% of leader retailers have the ability to respond quickly at these variations, such Amazon. For this reason, it acquires great importance the correct use of a software specialised in price motorisation of competitors. Do not miss the time and adapt your business to new adversities.

28/12/2022

Which are the best footwear marketplaces to sell on?

Footwear marketplaces are booming. The last decade has seen the launch of new specialized marketplaces with millions of different users. Among them are Spartoo, Sarenza and Farfetch, portals with international reach. Their main value is that they unite hundreds of footwear brands, as well as offering clothes and accessories. Although each has its own characteristics, they are all vertical marketplaces, i.e., they focus on a specific area, and their sales categories are interrelated. For sellers, these portals provide an opportunity to expand sales channels and drive the globalization of their e-commerce business. We explain how to sell on these footwear marketplaces so that you can assess whether they align with your plans for the future and then start defining a possible pricing strategy.