In this article, you will find tips on how to use price tracking software in the Household equipment market. You will find insights for online shops that want to stay competitive in this market.
We will cover the following topics:
- What are the characteristics of the household equipment market?
- What are the challenges related to price monitoring and dynamic pricing (repricing)?
- Which functionalities and reports provided in the price tracking tool are crucial?
- How to start monitoring prices systematically?
1. What are the characteristics of the household equipment market?
Household equipment (home appliances) industry covers products which are used in a household. It can be divided into:
- Major appliances, e.g. refrigerators, washing machines
- Small appliances, e.g. coffeemakers, vacuum cleaners, blenders
According to Statista, the sales of major appliances are ~2x higher than small appliances sales.
What is characteristic of this market?
- You can find household appliances in almost every home – in Germany, 83% of households own a coffee machine, in Spain – 77% have a toaster.
- The market is expected to grow with CAGR 4.4%. The growth will come from both new users and customers buying new models of already used appliances.
- A majority of customers in several countries will buy household products online more often after the COVID-19. China was the only analyzed country in which there was a decrease of respondents who said that they buy furnishings and appliances online. In some countries, such as Spain, there was an increase of even almost 50%.
- Smart appliances have been gaining popularity since 2012. Hence, digitalization has been playing a bigger role for manufacturers; on the other hand, online shops need to use proper product descriptions to explain all the advanced features.
- The market is consolidated. However, to be aware of new brands and products on the market, an online shop could acquire a Competitor’s Assortment Report thanks to which it can track new products in their competitors’ offer.
- Some of the most popular brands in this industry are: Midea Group, Whirlpool, Electrolux, BSH Hausgeräte
2. What are the challenges related to price monitoring and dynamic pricing (repricing)?
As we showed before, online sales have big importance in the household appliances sector which is a trend which many companies operating in this segment have to adapt to. And what is the most important factor for customers when they buy online? As several researches show, price is the most relevant factor for customers when purchasing online.
It means that an online shop which wants to be popular among customers should offer competitive prices. Without a price monitoring tool it is almost impossible to track all the offered SKUs in all the relevant channels every day. With price tracking software, you can have a short glimpse on the panel every day. You can choose competitors which you want to compare to and check your shop’s ranking (position) in comparison to them:
Other relevant information displayed is about opportunities for profit increase or important changes in the market. In order to always be up to date, you can receive such insights in e-mail alerts as well.
The second functionality which is often used is dynamic pricing (repricing). It gives you a possibility to change the price in the online shop according to the current market position. How does it work? You set customized rules according to which the prices in your shop should be changed. It can include such rules as “being the cheapest on Google Shopping”, “being cheaper than the average on the market” provided specific conditions (e.g. minimum profit margin). Thanks to that, you can automate your pricing without additional manual work and time needed. If you have seen competitors being always 5 cents below your price – it is very probable that they use such rules for their pricing.
3. Which functionalities and reports provided in the price tracking tool are crucial?
What is relevant when looking for a price monitoring & repricing software?
- Clear market overview – price monitoring tool should enable you not only to check your position on the market but also to identify the most relevant competitors. In the Dealavo tool, you can see your position on the market in regard to every single product and see how many other online shops offer it. You can also easily see which products you have in common with each of the competitors.
- All data integrated in one place – thanks to having the data from all the platforms in one panel, you can understand the situation with one glimpse only.
- Data displayed in charts – there is no easier way to see a trend than looking at a chart. That’s why at Dealavo we try to visualize the data in very intuitive way – with charts including information about different competitors’ prices in a specified time range
- Dynamic Pricing – to react quickly, it is recommended to implement dynamic pricing based on customizable conditions. Some shops use different rules depending on the channel or country – with Dealavo software it is not a problem.
- E-mail alerts – to be always up to date with relevant changes in the market, you should make sure you can receive e-mail notifications every time there is an important price increase / decrease in the market, or when there is an opportunity to increase your price etc. With Dealavo, you can choose when exactly you want to receive such an e-mail (e.g. when the prices decrease more than 15%).
- API integration – to implement data from the tool to your system, API integration is crucial – especially if you monitor hundreds or thousands of products. With Dealavo, you always get an API.
- Data available in csv – for data analysis, it can be important to have data in csv format as well. Dealavo offers it for all of the clients.
- Availability information – it happens that your competitors offer products at very low prices, but then it turns out that they are not available. It can even happen that even though there are several listed offers, you are the only shop which actually has the product. It is crucial to have availability information in the tool.
- Frequency of the updates – to react fast, you need frequent updates. At Dealavo, we can offer you to refresh informationi even every 15 minutes.
4. How to start monitoring prices systematically?
Once you decide price monitoring and repricing are crucial, here are the next steps you should follow:
- Fill the contact form to have a call during which we could understand your needs and discuss how we can help.
- See the demo of Dealavo price monitoring tool
- Choose the products you would like to monitor
- Choose the websites you would like to track prices on – these can be marketplaces, price comparison websites or online shops
- Our team will do the rest!
Learn more about price tracking in the other industries: