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.