Do your competitors monitor your prices?
How do I know if the competition copies my prices? This is one of the most common concerns among those responsible for an ecommerce.
A good pricing strategy is a competitive advantage for a digital business, so it is natural for many to ask this question searching for answers that allow them to make decisions and protect the advantages that they have achieved. Although total certainty does not exist, if we analyse some facts we can have very valuable information as to know if our prices are in our competitor´s spotlight. Here are five situations that can hint that they are copying your prices:
- Prices. Their natural variation can produce automatic replicas within the competition.
- Products with sizes and colours. If my store is out of stock in certain sizes or colours of a specific product we may see that they suddenly have special prices in our competitor’s stores.
- Availability. When there is no longer available stock of a certain product in my store it can generate offers or promotions within in our competition.
- Catalogue. When updating a reference group of products it can cause identical updates in our competitors.
- Web traffic and server data. From a data analysis we can find striking patterns between ourselves and our competitors.