E-commerce sales are projected to exceed half a trillion dollars
52% of the U.S. population shopped online in the past year (compared to 51% in 2016)
When shopping online, 79% of Americans report to “actively” searching for the lowest price
If you’re managing an online store, one of your biggest challenges is keeping up with your rivals:
What prices are they offering?
When are they doing promotions?
Are their prices lower than yours?
Are there any markdowns?
Using this data, a retailer can stay away from overpricing their items, react immediately to alterations in prices, and prevent losses by monitoring the prices of their competitors!
The most successful online stores—retail winners—use competitor price monitoring to find opportunities to take advantage of in order to increase their sales.
When the data is collected and analyzed, it’s easy for them to identify specific market trends. It also helps a retailer figure out his exact company positioning to understand what the next best steps are to take.
The process of price monitoring gives you the data that you can depend on to make critical decisions that impact the success of your e-commerce store. You can make decisions knowing that you have credible data to support your decisions, thus reducing risks.
If you were to track your rivals’ prices on your own, you’d waste so much precious time that you could’ve used to focus on other important findings that can’t be automated, e.g. pricing strategies.
However, with competitive price monitoring tool, you get all information that you need with a few simple clicks thus giving you more time to work on marketing or pricing strategies, for example.
With online price monitoring software, you’ll get as close as you can to real-time competitive data. You receive all data you need about rival’s activities to quickly reprice your products, thus getting ahead of the competition.
By using competitive price monitoring software, you’ll get real-time data about rival prices, items, promotions and all important changes, which are monitored 24/7.
After you upload the information on your assortment into competitive price monitoring tool, the software collects prices of competitors and gets raw data which needs to be processed. As a result, you see clear visualizations which help you compare your rivals’ framework with your own. On this basis, you will develop and improve your pricing strategy.
A good competitive price monitoring tool should be easy to adjust according to your pricing strategy and general business strategy.
E.g., if your shop works as a discounter, the discount rules can be configured by category manager or automated in order to follow your strategy and make the right price changes. To get to know more about agile configuration and agile pricing, read our ebook.