Pricing policy is one of the key aspects that affect the sales volume in any online store. On the one hand, product prices should be attractive to consumers, and on the other hand, they must guarantee the seller’s profit. Price monitoring software may be a way to find a golden mean. In this article, we will answer the question of how to use dynamic repricing to increase sales in your online store.
How does price monitoring work?
In order to keep the prices of your products at the optimal level, you should constantly analyze the activities of your competitors. This would require you to visit their stores and other websites (e.g., marketplaces) where they sell their products. Such work would cost you a lot of time and would be completely ineffective. After all, the prices of the competitors’ products change all the time.
That is why you should reach for competitor price monitoring software. It acquires product data from the market and competition and then compares it with yours. Thanks to this solution, you will learn, among other things:
- What is the average price of your product on the market
- How much you can really earn from selling one item of the product
- What is the minimum and maximum price of the product that allows you to stay in the market
Thanks to the automation, using competitor price tracking software is extremely simple. You just need to select the range of data you want to monitor. You can decide to analyze the prices of one product, your entire assortment, a specific brand, etc. The tool will conduct a market and competition analysis for you, taking into account – according to your preferences – store websites, marketplaces, or price comparison engines.
Your price monitoring software will primarily use artificial intelligence algorithms, employing, for example, unique product codes, offer titles, brands, and even image recognition. The data obtained on this basis will be compared with your own. This will allow you to react appropriately to the competition’s pricing policy.
How to use dynamic repricing in your online store
Competitor price monitoring itself is just the beginning. If you want to keep the prices of your products at an optimal level, you have to monitor them 24/7. Prices on the market can change several times a day, requiring you to update them in your store constantly. This is where the dynamic repricing function comes in handy.
The price monitoring software you choose will automatically use the information obtained on the Internet to set your prices at the appropriate level. It will also be guided by the configuration rules you implement. For example, you can set a minimum margin on each product, thus avoiding unprofitable transactions.
Thanks to price monitoring and dynamic repricing, you can:
- Stay up to date with market news and seasonal fluctuations
- Find out which products are missing from your assortment
- Manage your inventory in an optimal way
- Stay competitive in the market
- Do not lose profits because of too low prices
- Attract customers’ attention through psychological measures (e.g. rounding up prices)
- Set optimal prices for new products in the store
- Highlight certain products with discounts
How to choose your price monitoring tool
An automated repricing tool is an innovative solution that can be found on some e-commerce platforms. CMS programs, such as Prestashop or Magento, have their own dedicated price monitoring modules. However, any retailer with more complex needs should turn to professional third-party software. It will be perfect, for example, in the case of stores with very large product catalogs.
When choosing a dynamic repricing tool, consider:
- From what places that given software collect data (online stores, comparison engines, marketplaces, etc.)
- How configuration and data transfer are performed between programs
- Whether the tool performs both market and competition analysis
- Whether the program analyzes only prices or also other product data (e.g. delivery cost and time, stock levels, etc.)
- Whether the interface is clear enough and easy to use
- What is included in the price of the program, and how much it is
- What automation functions does the program include
By following the above criteria, you can easily choose the perfect repricing software for your online store. Dealavo is one of the solutions that you have at your disposal.
Competitor price monitoring software – the best way to increase your sales
Managing the pricing policy in the online store does not have to be time-consuming and complicated. All you need to do is equip yourself with effective price monitoring software that will constantly analyze the market and competitors’ activities to keep the prices of your products at an optimal level. Thanks to this, you will quickly and conveniently acquire new customers while maintaining a guarantee of profits. You will also save a lot of time that you can spend on marketing and developing your business.