Retailers use various pricing models to pursue different business goals such as to increase the profit, market share or turnover, among others. Basic pricing models for eCommerce include cost-plus, value-based, and rule-based pricing.Market Test
The Cost-Plus Pricing model is based on adding a fixed dollar or percentage to the product’s cost. This model does not require deep market understanding and is easy to apply.
The Value-Based Pricing model sets different prices for individual customers based on their perceived value.
The Rule-Based Pricing model uses specific predefined rules, which retailers set based on their business goals.
Retailers require quality competitor pricing data. Without precise information, making the right decisions on repricing will prove difficult, which will increase markup and profits. Businesses receive up-to-the-minute quality data about the pricing of their online retail competitors and stay ahead of the market.
Effective eCommerce pricing strategies use the following rules:
1) An unreasonably high price diverts shoppers, especially in a highly competitive industry, e.g. electronics & computers
2) An unreasonably low price decreases margins and revenues.
The most balanced pricing strategies are primarily based on the customer price perception
Competera’s machine algorithms collect competitive data by the parameters and schedule set by retailers and analyze it to make pricing recommendations. Unlike humans, algorithms are incapable of mistakes.
Great service and great team. Competera is a great software provider for an online store like RDE. Two years of collaborations have brought us high sales performance and revenue rate. Using Price Intelligence we have achieved our goals: optimised pricing process and increased in number of customers. I want to underline how we had been pleasantly surprised with qualified and quick to sympathize support team. They furnished the information on any our request 24-hours/7-day. Thank you, guys!
I’m a current user of Competera pricing software. I’d say the huge task is done for the managers of product categories in the online channel. Online fully automated competitor’s price tracking helped us significantly reduce the time for data processing and product pricing. After the integration with the service our prices got protected from possible human errors. I should say Competera is not the cheapest solution, but it worth to pay for the quality of pricing platform and the services provided.
User-friendly and effective competitive price monitoring tool from Competera. Finally, our business has found an efficient competitive monitoring tool! Now we have the ability to make correct pricing decisions for our product categories. Competera makes pricing recommendations based on accurate data analysis of our main competitors’ prices, promotion, and stock availability. Looking at our business outcomes, I’d say Competera does its job very well indeed.
According to statistics, eight out of ten customers compare prices in at least two stores before buying online. Therefore, retailers willing to attract and retain customers need to collect competitive data about pricing, promos, and stock to set optimal prices and increase their revenue.Get to know more about price optimization
Competera’s automated price monitoring solution collects, structures, analyzes and delivers competitive data by store, category, and product on a schedule.
The solution visualizes the retailer’s position in the market and provides pricing recommendations and actionable alerts about market opportunities.
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