Online shopping has become extremely popular with people for the convenience that it offers to customers. However, it is not an easy business for the person who owns the online store. The eCommerce industry is developing rapidly with stiff competition among the many eCommerce sites dealing with varieties of products. To make a mark in this business and to succeed, many things have to be kept in mind including pricing strategy.
According to Forrester Consulting research, 81% of buyers compare the offers of several stores in search of a better bargain. Retailers that can collect and analyze market data, map their position against competitors. This analysis will allow retailers to offer optimal prices for potential customers. it will also display opportunities to attract more customers, converting visitors to buyers and ambassadors.
Among the many pricing models, competitive pricing is one of the most commonly used among businesses from different industries. It allows entrepreneurs to attract more customers by optimizing prices according to the current state of the market. It means successfully using competitor's open data about products and pricing.
Having a monopoly is one thing because you can set the price (almost) the way you want. But developing pricing strategies based on competitors’ behavior isn’t an easy task.
A successful pricing strategy can significantly increase sales, result in better cooperation with suppliers, and boost revenue.
Competitive pricing analysis is an efficient approach to analyze the selling price of the same product on different competitor’s websites. The smart pricing analysis will let you optimize the selling price of your product and attract new customers.
How to conduct a Competitive Pricing Analysis?
Let’s take a look at the e-commerce company that specializes in household appliances. To stay up-to-date with your competitors, you’ve decided to conduct a competitive analysis. You have three core competitors that are in the same price range as you.
Goal. Explore the opportunities to make your value propositions more appealing to customers and discover new directions for business growth.
Initially, you go to the competitors’ websites and search for particular products, such as a two-door fridge or robot vacuums. Then you copy the prices into the spreadsheets you’ve created beforehand in which columns display competitors and rows - product names. You repeat this process with every product that you want to analyze until the list of competitors is completed.
After that, you compare the prices and find the average price for each product.
Finish the process by going to the Admin page and changing the prices according to your sales strategy.
The tables above display the fundamental data that is needed for the competitive analysis of prices. Generally, it takes several hours to collect all the necessary information and update the prices on the website.
Moreover, the analysis and comparison is not a one-time process. It needs to be done on a regular basis to keep pace with competitors. The prices on these sites keep on changing from time to time. This adds extra work to your employees and more data to analyze.
There’s another way to handle competitive pricing analysis
Meet ElectroNeek. It can handle this task for you.
ElectroNeek Platform is an end-to-end business automation suite that allows users to optimize the workloads by automating routine tasks. It also creates an opportunity to swiftly collect and analyze the data needed for strategic business processes. Users can instantly discover automation opportunities, build and orchestrate the ecosystem of automated workflows to eliminate repetitive business processes.
With ElectroNeek, you can track, compare and analyze competitive pricing data and information 24/7. It allows you to swiftly optimize the pricing of your products so that the best revenues are earned from the same.
The ElectroNeek automation journey starts with inviting business users and colleagues to the web-based platform. There they can download ElectroNeek Robot and begin collecting data on specific automation opportunities. There’s also an opportunity to include humans in the loop to check in-between results. This way, you are always in control of automation execution.
The aggregated data and automation recommendations are available for the designated business and IT users in the online People Dashboard and Automation Hub. Authorized users can download on-premise ElectroNeek Studio to build automated workflows that can be deployed in attended (RDA) and unattended (RPA) manner.
Platform admins can then manage and control the execution of automated business processes with the ElectroNeek Orchestrator.
All detailed data about the competitors’ websites that can be collected includes shipping costs, discounts, actual prices, MSRP, etc. The final analysis is done automatically by keeping all these factors in mind. It helps in setting the overall pricing of the products for an eCommerce business.
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