Online price monitoring

Price monitoring is one of the basic processes in e-commerce branches and serves as a standard nowadays. There is no golden rule or common formula that makes it possible to apply it to a certain product or service. You have to approach every case individually taking into consideration factors such as branch characteristics, categories, specification, availability, and product’s popularity among clients. What needs to be done to have efficient monitoring? What should draw your attention? What products should be taken into account? You will find answers to those questions in this article.

The branch dynamic

The branch dynamics indicate how often the prices of the products change. It differs in every case:

  • The short life cycle of a product – this process is easily observable in the mobile phone branch. Every few months producers launch a new, better phone model on the market. Warehouses don’t want to have old phone versions stock in hand. To avoid such situations suppliers and resellers often lower prices and this tactic works.

  • Large demand – visible in cosmetics, medicine, and medical goods branches. The competition is so severe that customers have so many offers that they often make choices based on price.

  • Long useful life – it is visible in a furniture branch. This branch has low dynamics because products such as wardrobe, chairs, sofas have a long useful life (reaching many years). In this case, the main criteria of choice for the client is the look and comfort.

 

 

Products price monitoring

It all depends on branch characteristics. It is worth to concentrate on certain categories and monitor changes in their prices with high accuracy:

When it comes to producers it is worth it to control dedicated brand new and top products. In terms of products that were recently launched on the market try not to lose the product’s potential and effort put by marketing to promote it. In the second case, it is the best selling product in a certain category and the most recognizable by clients – care for this product so it doesn’t lose the leading position.

When it comes to internet shops take a close look at the products that are in charge of the image of the company. Those are products that are best sellers and the most popular among clients. Think about what is in the competitor’s offer because the rivalry supports the price decrease.

In the case of producers and retailers, goods that demand seldom monitoring are all the products that are in a standard offer and have a long product life cycle.

To sum up, nowadays price monitoring is one of the foundations without which companies cannot thrive in e-commerce. Remember that only regular monitoring is efficient and effective, with an individual approach to every piece of the offer.

 

Start monitoring prices!