Every self-respecting online marketer and trader needs price comparison software to monitor and supervise changes as they occur in the market they are operating. Detecting fluctuations in prices, relating them temporarily and, above all, anticipating changes are the keys that make this tool an essential resource for any online retailer. If users themselves compare prices before buying, surely sellers also should make this comparison?
What is price comparison software?
A price comparison software is a digital tool that allows you to know, at all times, what prices are applied by your competitors to each of your products and services. Today, this is one of the solutions most demanded by retailers and online sellers, as it opens the door to multiple opportunities for competing under improved conditions with other online stores.
With price comparison software you will have detailed information about what prices are applied by your competitors and with what variations. Your main benefit will be gaining an advantage over your competitors by studying the data you send back. Through your analysis you will be able to achieve a well-defined pricing strategy that allows you to anticipate key moments, and when they occur, in the market and gain new sales.
What is price comparison software for?
The purpose of price comparison software is to monitor the competitions prices, within their online store, in order to define a pricing strategy which is adapted to market changes.
With the help of such a software, an online seller may:
- Know what prices are applied by their competitors to the products they also sell or similar.
- Know when competitor price changes take place.
- Obtain information about the distribution costs that can be covered by the prices your competitors charge.
- Detect opportunities to promote products with high demand.
- Control your product availability and compare it with your competitors in order to make correct decisions regarding stocking.
Price comparison software is precisely the key to developing a dynamic pricing strategy which is perfectly adapted to market fluctuations.
What else does it offer? The possibility to automate all types of competitor tracking, as well as the collection of data in a massive, but orderly, way thanks to modern techniques for managing big data. In this way, you will be able to consult, review and analyse all the information you have at your disposal in order to draw accurate conclusions and make the right decisions.
Who is this type of software for?
Price comparison software can be used by any type of online company or brand. However, in most cases, it is interesting for retailers and online businesses that sell to end consumers, whether they run an eCommerce or any other type of vendors. Online sellers must know what their competitors are doing especially as the market is getting ever more crowded. With the help of the technologies implemented by this software, it is possible to obtain the necessary information as well as automate the processes of price modification using a dynamic pricing strategy.
On the other hand, the catalogue management functions it allows are especially attractive. With such a tool it is possible to compare the availability that several vendors have of each specific product (including your own) in order to holistically analyse factors that influence price changes. In this way, any online retailer can contrast the situation of their catalogue with their competitors and get in depth knowledge about whether these price fluctuations will bring the same benefits to your competition, and therefore are a good option or not.
Why should I use a price comparison tool?
In the context of online sales, the use of price comparison software is necessary for one main reason: it is virtually impossible to manually track the prices set by each competitor for each product. As we know, the digital environment favours the proliferation of new vendors and new business models. Keeping them all under control becomes very complicated as possibilities multiply as also do the number of competitors. With price comparison software you can keep up with any changes in so many indicators that may worry you. This way you can accurately monitor the market factors that interest you most, including as many competitors as you require.
In addition, using such a tool you will also be able to define what actions to take based on each competitors activity. If the general trend in the market is a price drop for a certain product you can adapt your online pricing so as not to miss any opportunity to sell, always with the security of being able to preserve your profit margin. A price comparison tool allows you to analyse all types of competitors and successfully enter all kinds of digital sales platforms. With such software it is possible to monitor price changes from small online stores to eCommerce giants such as Amazon or AliExpress. All with the help of a single centralised and easy to use tool. After all, ‘why’ should you be using a price comparison tool is essentially answered in a single sentence: because it is necessary to impulse online sales and to not fall behind.
How to choose the right price comparison software?
Different solutions can be found to carry out price comparisons of the online competition. However, before choosing any price comparison software, it is necessary to know the factors that will most affect the needs of your business.
First and foremost, it is vital to understand that the quality of the data tracked by the tool will define whether the software is value for money or not. How do you know if you are dealing with a good price comparison tool?
- It is able to collect a large amount of data and track, in depth, each competitors catalogue.
- Does it allow you to obtain reports in an organised and planned manner?
- Is it able to track both competitor price and the successive changes that are applied?
- The time it takes to record the data allows you to make speedier decisions, sometimes in advance.
- The percentage of errors in the data collected is less than 5%.
- Allows the accumulation of collected data in order to make comparisons with different dates and season dimensions.
In addition, like any other supplier of your business, it is advisable that you hire it in different modalities so that you can choose the one that best suits your needs. In some cases, it may be by a monthly subscription and, in others, only on demand and under specific orders.
What are the advantages of Minderest's Price Comparison Software?
Using a price comparison tool already has multiple advantages that make it both attractive and necessary to boost the online sales of any retailer. But what's so special about Minderest's software?
With Minderest's price comparison tool it is possible to both monitor competitor's prices and identify the different indicators that can lead to these changes. Thus, it is possible to quickly identify the factors that influence these market fluctuations.
Minderest’s price monitoring software stands out for the effectiveness of its tracking system. If there is one thing the experts agree on regarding Minderest is that it has the best result rates for both information coverage and accuracy. Thus, this Price Comparison Software has been identified as one of the most attractive options in the market for being the one with the largest volume of data collected, and who’s data is of the highest quality. After all, this characteristic is vital to avoid making the wrong decisions.
Without doubt, another major advantage of Minderest is that it can be customised to a high degree. Minderest’s price comparison software is one hundred percent adaptable to the needs of your eCommerce or online store. You will be able to identify as many milestones as you deem necessary to monitor your competitors, include in the tracking list as many online sellers as you deem appropriate and even define as many performance variables in the price modification as your business requires.
Thanks to this feature, Minderest’s price comparison software always returns detailed information that each retailer needs, not only in terms of pure price comparison, but also in terms of the actions carried out after its analysis. With this technology, the profit margins for each product will be guaranteed even with a strategy of dynamic prices, since you will be able to define in each case how much you want to lower the price.
How to get the most out of Price Comparison Software?
The basis of a price comparison software is the pure comparison between different vendors products and the prices you set. However, there is much more to explore and functions to exploit in order to maximise their functions. For example, with Price Comparison Software it is possible to compare products by offer or promotions. This allows each retailer to understand what possible market gaps they can fill. If these are related to a peak of high demand, as a seller you will be able to make the best pricing decision.
On the other hand, it is possible to set alerts to react in the shortest possible time when certain changes in the market occur. Do you care more about one competitor over another? Keep a close eye on them. Are you waiting for a product to go out of stock? Know the precise moment in which it happens. Not to mention being aware of promotional prices that could affect a quick search made by a user. Upgrade your prices and don't miss a sale! A retailer must know how the competition presents their products. Don’t hesitate to check what your competitors’ product page looks like in their own online store as well as in other marketplaces or sales platforms, comparison tools, etc.
The user is already looking for a product that meets their needs but will not only make the decision to buy based on the price, they will also take into account your image, how detailed the description is and other psychological factors surrounding an online catalogue. Analyse what works for you, and your competition, and boost your sales.
How to analyse the data after the price comparison?
Although a Price Comparison Software allows a retailer to automatically obtain information about its competitors, the analysis of the data does not cease to depend on a pricing expert’s own work. In the case of Minderest, its machine learning technology allows the tool to predict and apply the best price changes for each product. However, the analysis of the data set, as well as the analysis of all the factors that influence market fluctuations, will be the one that allows each salesperson to know, in depth, the situation on the playing field.
In this sense, the first thing to do is be clear about the factors to be studied:
- Type of price change: temporary discount, definitive discount, exclusive loyalty promotion...
- Temporary dimension: permanent discount, flash offer, calendar event, Sale season...
- Recurrence: how often does the price change occur? Does it match with a specific time dimension?
- Percentage of the price decrease and its relation to the costs covered by the benefits obtained.
Once the study points have been defined, it will be necessary to take into consideration the relationship between one data set and another. That is why having a large data history is so important for the construction of the post comparison price analysis.
With the help of our tool it will be possible to obtain the data in an orderly manner, making it much easier to read and then interpret. In this case, periodic and punctual reports can be obtained to help shed light progressively on the changes that occur.
A complete price comparison software must be able to facilitate this titanic task in the digital environment. In short, its own mission must be to simplify processes in order to be able to compare a vendor’s pricing strategy with its competitors and at the same time to help with the analysis of data in order to make the most beneficial decision for each business at all times.