Price monitoring for Allegro

On 12 October 2020, Allegro, made its debut on the Warsaw Stock Exchange. The company broke the record for the highest initial public offering, beating by 13% the previously highest PLN 8.1 billion recorded by PZU in 2010.

Thus, Allegro has become the largest company listed on the Warsaw Stock Exchange, joining the WIG20 index. Its capitalization is almost twice as high as that of CD Project, which occupies the second place on the Polish stock exchange.

As a consequence, Allegro is becoming a more and more powerful e-commerce platform worldwide, but also strengthens its unquestionable first position in the Polish e-commerce market, despite the recent Amazon debut in Poland.

Start monitoring prices on Allegro!

Below you’ll find a few tricks on how to increase sales on Allegro.

1. Competitive price
   Of course, price is not the only factor the customers consider when making a purchase, but it is one of the most important ones. The competition on Allegro is huge, and it is really easy to find the cheapest offer on the platform thanks to the advanced filter options. That is why sellers have to continuously ensure that their prices are attractive to the customers and, at the same time, bring appropriate profit. It is a challenging task, but it can be made much easier by using modern tools for price monitoring.
   
2. Presentation of the offer
   The auction on Allegro is the only place where the customer sees your offer. That is why you have to make it really attractive. High-quality photos that present a product in a positive but realistic way are a must. The description is also important. It should contain all the necessary information and answer every potential question of the customers. It should also include technical specifications and precisely describe the condition of the product.
3. Auction title
   Another crucial factor for effective sales on Allegro is the title of the auction. The platform works in a similar way to a search engine and processes around 1.6 thousand queries per second. The name of the product should be optimised in a way that will make it easy for a customer to find it. It can only have 50 characters, so be sure to use the limit properly and choose words that will convince the customer to click the offer. You should avoid ambiguous titles and names that make it difficult to identify the product, mislead people or are irrelevant from the customer’s point of view (e.g. internal stock number). Inappropriate auction titles may cause a significant decrease in sales on Allegro.
   
4. Additional benefits of your offer
   Sometimes, customers are willing to pay more if the purchase involves additional benefits. If you offer fast or free shipping, extended warranty or attractive delivery options (e.g. parcel lockers or Allegro Smart program), you should highlight this in your offer. This way, you can convince the customer to make a purchase in your shop even if the price you offer is not the lowest one.
   
5. Highlighting your offer
   If you sell products from a popular category, where the competition is high, you should consider using paid advertisements. Allegro Ads, the advertisement system of Allegro, helps you to reach new customers and increase the visibility of your offer. It provides three basic mechanisms: sponsored offers, graphic advertising and ad network. The most interesting option is the last one, which allows you to direct traffic from external platforms, such as Facebook and Google, to Allegro.

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Both sellers and buyers focus on a certain product or branch of products where it goes about price, quality, and the variety of offers. Providing that, up-to-date control, and analysis of own prices and actions and comparing them with other’s results is important. This helps in deriving conclusions and implementing solutions (e.g. decreasing prices, changing strategy, changing the marketing content). All actions are taken to be a step ahead of competitors having a more attractive sales offer. Moreover, daily monitoring makes it possible to react fast in case a competitor makes any change. This is essential to keep a high position and have effective sales.

When you sell on Allegro, you have to remember that you do not have to limit yourself to this one channel. The e-commerce world offers plenty of possibilities, so you might want to try multi-channel selling and also sell your products on other platforms, such as Amazon or Google Shopping.

However, we do not recommend directing traffic to Allegro from your own online shop. If you do this, you will decrease your profit because selling through an intermediary involves paying commissions. Thus, when setting prices on Allegro, you have to take into account not only the offering of your competitors but also the terms of sale of the particular platform.

Contact us if you want to learn more on how to sell effectively on Allegro and choose optimal pricing strategies. Our experts will show you how to use modern monitoring tools to maximise profit from online sales.

Start monitoring prices on Allegro!