Price Tracking in eCommerce – How to Use It to Set Prices on Marketplaces
We live in dynamic times, especially when it comes to online trade. Customers’ expectations are constantly growing, and your competitors are at your heels. To top it all off, traditional pricing methods are no longer effective. Clearly, it would help if you had new solutions that fit this new reality. One of them is called price tracking. How can this service help you thrive online, especially when it comes to marketplaces? Let’s find out.
Let’s say a few words about marketplaces for a start. People go there for obvious reasons – these enormous e-commerce websites offer millions of products, frequently at attractive prices. One visit on Amazon takes less time than visiting tens of different stores looking for a product that a given customer is after. According to market data, there are over 12 million products listed on Amazon, and over 60% of consumers start their search for a new product right there.
It’s a similar story with eBay, Shopee, and other local marketplaces. They are quick, convenient, and offer excellent customer service. As a result, customers simply prefer to browse products and order them via these platforms. That said, if you want to succeed online, you have to be there. What can you do to ensure good visibility of your offer on marketplaces?
Price tracking – the key to success on marketplaces
There are many elements that affect your visibility and position on marketplaces. Some of them comprise exhaustive and accurate product descriptions, high-quality photos, good reviews from your customers, and, of course, offering products that are demanded by the market.
But the key to success comprises one more thing – attractive prices. According to BigCommerce, 9 out of 10 customers check product prices on Amazon. Many of them do that even after finding the right product in a given online store! The reason is apparent – they’re looking for the best deal. And with the right price tracking tool, you can offer them just that.
Let’s use a simple example to show you the significance of optimal prices on marketplaces. Of course, it’s fictional, but the premise it shows – is very real. Take a look at this situation:
Here, we have five retailers offering SONY TVs. Notice that lowering the price just by 1.01 EUR moves you up from the fifth position to the first one. 1.01 EUR is not a significant difference when it comes to your profit, but it is a huge difference when it comes to your visibility. And that’s, in short, why you need a price tracking tool. With such a tool, you have access to that information every time you need it, and you can adjust your prices accordingly. In effect, you can maintain a good position (perhaps TOP5 or TOP3) in a given product category.
Opt for price monitoring
If you run an online store, you need a competitor price monitoring tool. With it, you can quickly discover the prices for similar products offered by your competitors. As it happens, in many instances, even a slight change in the price can boost your visibility. You have to remember that many online retailers still don’t use similar tools, and many of them offer products at the same prices as their competitors. Usually, that’s not a very effective approach.
Additionally, you can go one step further and opt for something called Dynamic Pricing. It’s an advanced online platform that’s fueled by AI algorithms. This platform not just monitors prices online; it adjusts them automatically so that you can maintain a high position 24/7, all year round.