Today's e-commerce retail is evidently shifting because of customers’ awareness growth. UPS research states that 81% of customers pay much attention to the cost when shopping online.
What does it mean?
Pricing managers and category managers understand that a highly competitive market requires an effective pricing strategy, which can make the profitable store while still competitive. This is why an online retailer should react to market changes and quickly respond to competitors actions. With software for competitive analysis he makes cost adjustments on products and product categories according to the pricing strategy and business goals.
To rightly conduct ecommerce price analysis and afterward the repricing you need to determine your goals and objectives and to counteract the strategies of competitors when they are willing to:
Competitive intelligence is divided into two areas, active and passive. Passive or defending one is the process of protecting yourself from efforts of your competitors with the help of technical skills (for example, protecting your website from competitor’s web crawlers). Defence consists in this case in trying to determine through ecommerce price analysis what data is competitively sensitive, how to protect it, and what type of information competitors may be looking for.
Now when we’re clear about it, what about the active CI?
Competitor pricing analysis makes an “active” part of competitive intelligence. It aims at collecting data and analyzing it. It is also used as an input to improve decision making.
It’s the cycled process, which contains of constant data collection and processing, goal and strategy building, automation and—not less important—performance optimization and prediction.
Active competitive price analysis should be:
timely data delivery (if data is required by 9 a.m. Competera delivers it at 9 a.m.), notifications on competitors cost changes and history analytics, price monitoring on SKU level.
that doesn’t trigger a website overload
and client assistance
Competitive pricing strategy should be based on up-to-date competitive data. Therefore, it helps the pricing manager create profitable pricing strategy.
In our article on price analysis, we point what exactly data you need to analyze to achieve the highest level of competitive intelligence. Check the next slide to see what they are.
It’s best to automatize collection of such data. Automatic competitive pricing analysis software is one of the most efficient tools, which helps build a comprehensive pricing strategy for the performance-driven online store.
The solution for e-commerce retail relies on the actual data of competitors' prices and allows the pricing manager to do pricing analytics and make certain pricing decisions.
High performance is possible to achieve in a dynamic market with the help of competitive pricing analysis, which collects data on competitors pricing behavior for a given period.
The market leaders prefer to know everything about their main competitors and keep abreast of any market changes by employing a competitor intelligence of competitor price.
Regular competitor analysis is a great option for building, implementing, and maintaining an active pricing strategy for any online store.
Performance-driven pricing and category managers use competitive pricing analysis software to capture competitor insights.
Online fully automated competitor price tracking tool eliminates days of manual work and possible human error. It collects and updates information as often as necessary, with flexible configurations which allow for custom time settings for different categories
Effective pricing managers use the most modern competitive intelligence tools to increase profits and gross margins of the online stores.
Usage of the most appropriate competitive analysis tools helps to gain a complete and definitive view of the market.
Competitor benchmarking is a great tool, which collects all the information on competitors’ price changes for all time.
Competera helps to analyze competitors' cost changes and gives access to a changelog within each separate item.
Providing competitive benchmarking, Competera compares the product categories, and highlights the products that need attention, and recommends specific actions for category/pricing managers.