Competitive Price Intelligence For ECommerce: A Guide From Analysis To Action
In today’s evolving e-Commerce landscape, staying ahead of the competition is paramount for success. One of the most important ways to gain an edge is by mastering competitive price intelligence. It is essential because it helps you identify the lowest prices and avoid buying from a competitive vendor to save money during promotional periods. It gives you a competitive lead by setting your prices higher than their cheapest competitors.
What Is Competitive Price Intelligence?
Competitive price intelligence is the process of monitoring your competitors’ prices to find out what they’re charging and how they’re pricing their products. It allows you to make informed pricing decisions likely to result in greater profits. Businesses might use this information to increase market share by undercutting the lowest prices with special deals or discounts on your products. We can help identify and position ourselves above the competition by raising our prices above theirs, making ourselves more attractive as a brand.
Benefits Of Competitive Price Intelligence
Decrease in shopping cart abandonment:
Shopping cart abandonment is a massive problem for e-commerce stores. Abandonment rates range from 50–70% of total visitors, and the cost of abandoned shopping carts averages about $4.60 per visitor.
Creating buying incentives:
If you are willing to lower your prices just below competitors’, you can use this tool to entice price-sensitive customers into paying customers. Put another way, and price sensitivity is essential in a purchase decision.
Deteriorating price competitiveness:
When you keep your prices high and maintain steady product growth, your competitors undercut you to increase sales.
Increasing market share:
Suppose you arrive at the market first with a lower price than your competitors. Then customers will perceive that there’s value in buying from you instead of them. Since this will drive up demand for what you sell, your sales volume over time will increase.
Increased sales and profits:
Although this is a stretch regarding the actual numbers, let us say you manage to increase your shopping cart abandonment rate by 2%. This means that 20% fewer visitors will abandon their carts, and they’ll buy more products while they’re at your site. As a result, sales and profit margins have increased over time.
Tools For Competitive Price Intelligence
Now that we've discussed why and how to use competitive price intelligence let's look at some of the best tools.
1. Retailgators:
If you're an e-commerce business competing in a competitive marketplace, you must use competitive price intelligence to win sales. As discussed earlier, using a competitive intelligence tool is the best way. Regarding cost and effectiveness, Retailgators is one of the best.
2. Scoutify:
Scoutify is a web-based monitoring tool that provides real-time data on competitor pricing. It shows the availability across 700,000 products in over 9,0For e-commerce online stores. For e-commerce businesses in the United States, it provides accurate pricing information from Amazon, Walmart, and other large retailers such as Best Buy and Target. It allows you to monitor competitors' product pricing by entering the keywords and SKU numbers in its search engine.
3. Zilliant:
Zilliant is another online tool. It allows you to monitor competitor pricing and availability across over 7,000 retailers. The software offers access to 28,000 products from some of the largest retailers available, including eBay and Etsy. You can use Zilliant to monitor product pricing by entering your keywords into the search engine.
4. Nexternal:
To keep track of your competitor's online activities in real time, you should use Nexternal. The tool provides real-time visibility into your competitor's sales and marketing activities. It includes their social media presence too. It will allow you to monitor what your competitors are doing so that you know when and how it might affect your business.
Conclusion
Competitive price intelligence is essential for e-commerce businesses looking to win sales in the competitive online marketplace. If you're not using this tool, your competitors will be out-pricing and undercutting you at every opportunity. It will slowly erode your business viability and make you a target for even more aggressive pricing strategies for your competitors.
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