Google Shopping is positioned as one of the best online price comparison engines. Being part of the most important family in the world, online and offline, is a great advantage to your chances of success. Now, for digital sellers the question is how to make the most of it. How to make the most of your possibilities with Google Shopping Monitoring?
Why monitor price changes in Google Shopping?
Google is one of the most widely used search engines in the world. As such, the Google Shopping price comparison engine is one of the most relevant on the market. Most users looking for a product to buy online go directly to this search engine and enter the name of the product they are looking for. Of course, the main results that Google returns are those that belong to its own platform. The top strip of outstanding Google Shopping products is increasingly present in these results. As a system inherited from other Google services, for example Google Ads, the first to come out obviously are the products from brands that perform actions with Google. However, maintaining the comparison engine in the margin for a moment when showing results, it must be borne in mind that the price will be a key element in making the purchase decision.
Monitoring competitor prices within Google Shopping is as important as doing it between different eCommerce. If positioning within this comparison engine is part of your pricing strategy, do not hesitate for a second that this should be a factor in the pricing strategy of your online store. Monitoring prices in Google Shopping requires tracking the eCommerce, brands and online stores which are indicated as relevant competitors. All of them vary prices according to different factors, so it is necessary to obtain as much information as possible to understand what changes are made, when, and as a maximum objective, why. Only this way can market trends be detected as demand increases, seasonal promotions are made or even stock build-ups.
The main objective of monitoring competitor prices is to boost the sales of your online store. Therefore, price tracking in Google Shopping, and the tendency to adjust prices, seeks to achieve this same goal. However, doing so within this platform has a clear added advantage: Google Shopping works as an own offer aggregator from other vendors, so by monitoring this platform you can obtain information from many competitors.
This allows you to have a vision of the price strategies of your competitors faster and with less monitoring budget. Without a doubt, price comparison within Google Shopping is a perfect starting point to online competition monitoring.
Optimise bidding on Google Shopping
The key pricing strategy in Google Shopping is the adaptation to the natural requirements of this platform. Thus, the margin for improvement is located in the bidding system of the comparison engine.
When we talk about adjusting prices relative to the competition in an online store, it always refers to the preservation of the seller’s profit margins. It is worth little or nothing to have the cheapest prices if this only generates losses for the eCommerce. In this sense, it is necessary with Google Shopping that you consider the possibilities of bid adjustment to position your products among the first places on the comparison engine. It is precisely at this point where you can feel the heritage of Google. Google Shopping’s bidding system allows you to invest in the appearance of those products that you want to position in a better way, in the same way that you would do with Google Ads. Here the key will be to optimise the investment in each of these bids to get the highest possible profit. How is this optimisation done?
First, you need to know which products are worth bidding. In the face of this, three factors should be considered:
- The natural position of your products with respect to the price of your competition.
- The profit margin that the sale of this type of product brings to your business and the ability to adjust the price to the costs involved in its sale.
- The relevance of the product within your catalogue, either by its conversion rate, or by the level of demand among users.
In order to analyse all these elements in detail and compare them with your competition, a Competitor Price Monitoring Software is the best option. With Minderest’s competitor price monitoring tool you can check at what price each of your competitors sells their products, with what margins and covering what kind of costs.
With the help of these three variables you will be able to detect, perfectly, which products are worth betting on a higher bid, those with which your business can be really competitive. It is important to keep in mind that products, with which you can’t stand out, should be left out of the Google Shopping strategy, as you will probably end up throwing money into an empty hole without any kind of return. Secondly, when optimising your bids in Google Shopping, you may find, at least, these two generic situations:
- The prices of products that are the cheapest by far, so you can keep the bid on Google Shopping and also raise, by some points, the price of the product to increase the profit on each sale.
- Prices which are not the cheapest, but Google’s system already gives it a good position, so you can opt to adjust the price of your product and thus boost the profit through sales volume.
In any case, it is always necessary to record what ROI is obtained from the investment made in Shopping. After all, the adequacy of bidding on Google must be indicated by the success of the action. In this way, it will be necessary to analyse the relationship between sales made and the cost of maintaining the product within Google Shopping's top positions. This task can also be carried out automatically thanks to the readjustment solutions incorporated in the Minderest monitoring tool in Google Shopping. Thanks to the reports offered by the tool it is possible to clearly check what are the most profitable bids and which have been the best modifications.
Finally, thanks to the competitor comparison software, it is also possible to detect in which fields there are precisely no competition. Not all online shops have to be bidding on Google Shopping to position themselves in their comparison engine. This is undoubtedly a clear competitive advantage when exploring new opportunities, as it will allow you to place very low bids on certain products with little competition. In this way you can begin to optimise your sales revenue, which, until now, had no extra coverage.
The Google Shopping environment is as broad as Google’s own world. That’s why having a reliable and specialised tool is practically a necessity for any seller. Without a doubt, a Competitor Price Monitoring software like Minderest’s will become an unconditional method for improving sales through Google Shopping.