Price monitoring tool - what information does it provide?
Why should you use a competitors’ price tracking software?
You will be able to see which retailers offer a specific product and who offers the lowest prices on the market:
You will see with which retailers you have the biggest amount of products in common:
You will see what positions your e-commerce offers occupy in price comparison engines:
You will be constantly informed about competitors’ price reductions and their promotional activities.
You can learn more about the key data to analyze and track from our article: What is price checker (price monitoring tool) and how to choose the right one?
Competitor price monitoring – what actions can you take with the acquired data?
The acquired data on market product prices will enable you to take actions in the area of pricing and marketing that should boost your sales profits.
Thanks to the price monitoring tool, online shops can determine which products are worth promoting:
- An online store can easily check which products from its assortment are unique on the market. If no other retailer has the product in the offer, it is worth promoting in social media or on the website.
- If the online store offers a product at an especially low price, it should highlight the price on the website.
Lowering prices can be optimal, especially when the product is popular (so-called traffic generator) and the shop’s offer is just slightly higher than other retailers’. In such a situation, sometimes lowering the price by just a few cents can lead to jumping to the first position. On the price comparison websites, prices are a key element and hence such a change can entail multiplied traffic on the website.
Optimizing your pricing policy does not necessarily mean lowering prices. You can increase profits by raising prices. This is often possible without losing even the most price-sensitive customers. When does this happen?
- When the product isn’t available in competing stores;
- If after increasing prices, your offer is still the cheapest one. Then you can raise your price without losing your position in the price comparison websites and marketplaces.