Many sellers and distributors are already aware that appropriate pricing, i.e. strategy and dynamic price management, is one of the key parameters for increasing sales and profit. With large sales volumes, even small differences in margins are significant.
Manual or automatic?
Being involved in analyzing and responding to changes made by competitors requires spending time and resources, which is often associated with expanding the price management department and creating ever-larger teams, thereby increasing operating costs. If we have a large volume of products, especially those available from many competitors, “manual” management becomes time-consuming and ineffective.
Sales platforms offer automatic machines for regulating the price, according to the assumed conditions, but they usually lower it, omitting the possibility of increasing the price depending, for example, on the availability of goods from competitors. So our profit is not optimal.
So what is the best way to deal with it??
It is worth considering the use of a tool that, in addition to collecting competitors’ prices, will allow you to compare this data with availability, verify non-price promotions that can also significantly affect sales, and check whether our products are visible to the customer, not hidden on the tenth page of the search results. . Based on the analysis of such complex data, we can create effective algorithms for calculating the optimal price so that increasing sales is associated not only with price struggle and the loss of a significant part of the margin.
The main benefits of using the system for e-commerce monitoring and dynamic price management:
- the ability to collect many different data from many sources (online stores, platforms, marketplaces) with great frequency
- verification of the correctness of collected data, elimination of losses caused by human errors
- automatic compilations of various collected data, ready-made analysis of the results
- the possibility of using complex algorithms that combine many pricing rules, depending on product groups, product life cycle, but also the dynamics of changes and trends resulting from competition analysis
- immediate detection and the ability to react to significant price changes on the market, detection of the appearance of new sellers, new sources of supply disrupting the current price level, new sales trends
- insight into the marketing activities of the competition (advertising banners, promotions) and analysis of their impact on sales
Possibilities, quality, costs
In summary: using a product monitoring system, not limited to price tracking, allows you to constantly optimize your offer, not only in terms of price management but also in marketing, logistics, and promotional activities. With constant, predictable, and rational monthly costs, you get access to ready-made analyzes and reports with a frequency unattainable, even for a large team of analysts.
The benefits are therefore much greater than just increasing profit: we lower costs while increasing quality. You get a wide range of tools for multi-faceted optimization of the offer and you can be sure that you will not miss any changes that may significantly affect your business!