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What does in-store price automation involve?

Running an online shop is a time-consuming business, and processes such as the day-to-day handling of orders, complaints and product cataloguing consume a lot of time and energy because they require the presence of the human factor. However, there are also elements related to the ongoing updating of product prices that can be automated by entrusting them to a computer. What are these elements? What does the automation process look like?

Dashboard interface showcasing price monitoring metrics and analytics for e-commerce businesses.

Which functions can be automated?

Modern software allows you to automate many processes related to your shop’s pricing policy. It is worth taking advantage of this opportunity, as an online shop is a rather complex business in which not all processes can be fully automated – suffice to mention, for example, the shipping of products or the processing of complaints and returns. Automatic price changes can include such areas of pricing policy as:

– automatic assignment of customers to specific price groups

– collection of both purchase and retail prices from suppliers

– individualisation of margins for individual products and categories

– setting of sales prices on the basis of purchase prices and specified margins

– setting and modifying price lists according to the location from which customers are arriving

– automatic entry of promotional offers and testing of price levels

API integration diagram illustrating data flow and connections between systems.

Automated price changes – does it risk reducing the profitability of sales?

Automating the prices in your e-commerce shop leaves you in full control of how the price of a selected product or product category in your online shop will evolve at any given time. All this is due to the fact that the price will be changed not only on the basis of data collected and analysed from the market, but also on the basis of rules you enter into the system, which are designed to ensure that the price is kept within the ranges that guarantee the profitability of sales.

This ensures that automatic price monitoring with dynamic pricing does not get into price wars that not only lead to sales no longer being profitable, but can also portray your e-commerce in a bad light in front of manufacturers who do not see it as a reliable and valuable business partner.

If you want to keep everything under control, you can also request the system to accept a new price every time. The decision to change is then always in the hands of the person responsible for pricing.

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Implementation of the algorithm

The second stage is the implementation of an algorithm to select product suppliers. In most cases, the deciding factor will be the price (often this means – the lower the better, because then the price automaton will lower the price and allow to generate more profit by increasing the volume of sales), but not always. If, for various reasons, the script (price automaton) is not able to make a selection based on price, it will use criteria such as

– the current availability of goods in the supplier’s warehouse (in the case of a shortage of goods in competing shops, the price machine can increase the margin without losing its position in the rankings of price comparison sites or e-commerce customers who care about the lowest possible price);

– the time it takes to process a particular order

– logistical minimum (minimum quantity or value of goods at which a purchase can be made on more favourable terms)

– trade credit (a contract involving the delivery of goods on deferred payment terms)SS

– the selling price in the shop, which is the purchase price plus a margin for a given supplier

E-commerce price monitoring illustration for Dealavo's services

Other online shop price policy automation modules that can be introduced are the module for automatic creation of promotions and sales, and the module for testing the best selling price.

In summary, the process of setting prices, price lists and promotions and sales in an online shop is only one of the processes that can be automated using the appropriate software. Of course, there are costs involved, but the gains in time, money and energy that price automation guarantees are incomparably greater. What is more, what would be time-consuming or even impossible for an employee to do is performed by scripts and a human being can be delegated to tasks that a machine cannot perform (e.g. direct contact with the customer).

 

Find out more about price automation!

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Frequently asked questions

What sites can I follow using Dealavo?

We track all the sites our customers ask us to track.

Price comparison sites, marketplaces or individual platforms such as Amazon. Dealavo can monitor any type of site.

Can Dealavo monitor companies in other countries?


With Dealavo’s competitor price monitoring tool you can track prices in any country.

What does Dealavo Software use to track competitor prices?


Dealavo price monitoring software uses a number of methods to track competitor prices. These primarily include product names, EAN codes, GTIN codes, ASIN codes and many others.

Monitoring prices based on many of the above factors ensures that the data Dealavo collects is always up-to-date and accurate.

Does Dealavo track different product volumes?


Yes, Dealavo is able to monitor different product volumes.

How often can Dealavo update price changes?


Dealavo is renowned for refreshing data regarding prices in the market very quickly. As long as the optometrist has access to the relevant information, it can update prices as often as every 15 minutes.

How does Dealavo ensure the high quality of the information it obtains?


Price monitoring requires the collection of precise and up-to-date information from the entire market. Any error, even the smallest one, can have a negative impact on the shop being served.

This is why we at Dealavo use double verification of the data. Our price mini-monitoring software uses both advanced Machine Learning algorithms, but is also supported by a team that manually checks the correctness of the collected data.

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