How to use data from price monitoring? Guide for e-shops
- 26 February 2020
Knowledge of the prices and availability of products on the market is critical if you want to make the right business decisions in e-commerce. This means that it is virtually impossible to run an online store without regularly monitoring what your competition is doing. Unfortunately, due to the vast number of products and sellers on the market, collecting information manually takes a lot of time and involves significant risk of human error. It is a good idea, then, to use advanced tools, which can help to analyse the market efficiently. What specific aspects of e-commerce should be monitored?
Price monitoring
Prices of the competition are the most frequently monitored element. By knowing the prices, you can quickly respond to changes taking place on the market by adjusting your own prices accordingly to maintain a good position in the ranking. The Dealavo price monitoring platform offers extensive capabilities for collecting such data, including, for instance, variants with or without delivery, and can be used to analyse how your prices are doing against the competition. This way, you can maximise your sales and profit by increasing the margin wherever the competition allows it.
Monitoring of availability
Product availability is another important factor to determine your price level. A standard Dealavo account will allow you detect out-of-stocks, i.e. empty shelves – product shortages at your competition are an excellent opportunity to raise your prices and stock your store with merchandise that is currently in demand, and they should be used deliberately. If you know which products are available, you can also predict different events occurring on the market and gain a deeper insight into its functioning.
Monitoring of special offers
By regularly monitoring the promotional calendars of the competition, you can identify the discount strategies of other shops and accordingly adapt your own strategy to always stay one step ahead. This way, you can regularly implement special offers before your competition does, extend the range of products on sale and discounts and reduce the price of popular articles that are rarely included in the special offers of other market players.
Dynamic Pricing
A good e-commerce monitoring tool will offer more than just valuable data and reports – it will also include a module to automate your prices (Dynamic Pricing). With such a tool, they will be automatically adjusted to the conditions on the market based on predefined rules. This way, your offer will always be optimal, regardless of how fast the changes are taking place. You will also be able to maximise your profit without involving any extra resources.
If you would like to know more about the benefits and possibilities of implementing Dynamic Pricing, read our article: Price management in e-commerce – Dynamic Pricing.
A price monitoring tool provides significant benefits and valuable knowledge about the functioning of the market. With an additional module for Dynamic Pricing, you will be able to automatically adjust your prices and achieve even better results. This way, you will be able to efficiently maximise your profit and always stay one step ahead of the competition.
Contact us if you would like to learn more about price monitoring or Dynamic Pricing. By choosing Dealavo as your partner, you will gain access to the extensive expertise of our consultants, who will help you in developing a strategy, optimising your portfolio and growing the individual product categories. We will also provide you with whatever support you may need to implement our platform, and we will help you choose the solutions most critical to the development of your business.