Today growing use of internet has introduced concept on online e-commerce industry where promotion and selling are done online. Competition is very tough and so to survive in such retail market analysis must be done that can help to maintain a superior position. One of the most important key factors in branding is price and so there is a need to have a keen eye on price monitoring.
What is price monitoring?
It is the awareness regarding market level pricing competition and how it can affect the business. Every company is required to have techniques which can help to make their own pricing strategy depending on the competition. There are different techniques used by retailers to get the result of price monitoring.
On the basis of such reports, companies go for brand planning is been designed which will help to increase business. These reports will show competitors who are attracting your customers because of the price.
Customers are aware of price while going for online shopping and so it is important to have reports regarding competitors. Today there is a cold war among competitors and the most important factor which plays the main role is the price. So, it is very important to go for price monitoring report to be in the race and attract more customers.
Explain importance on price monitoring?
Online e-commerce companies who are willing to rule over their competitors opt for data-mining techniques. This will help to get reports on competitive pricing data which would further help to redesign pricing strategy.
It will help retailers to make changes in their pricing strategy on the basis of reports to survive in competition. It is very important to know about the market position and with the help of such reports it would be easy to make changes in business pricing strategy.
Once you have graphs for price positioning you can increase or decrease the price as required. Get reports which include price sensitive products of your competitor so that planning can be done accordingly. Daily reports will help to stay alert while competitors change the price and thus taking action at the right time will help to maintain position.
How does price monitoring work?
- First, it will discover regarding competitor website who are selling the same products.
- It is not necessary that competitors are selling the same product or similar to your products. So, to get such reports algorithms along with human intelligence is been used.
- Next is to get data which includes price along with shipping charges of competitors.
- Accuracy is an important factor as there are many e-commerce websites who are changing the price in minutes. So, accuracy is also being checked with help for gathered information.
- Lastly, reports are generated which will help to know the current market position of you and your competitors. It will help to understand lacking factors and thus will help to make required changes.
Thus, price monitoring is very important while running online e-commerce industry. Getting pricing details of your competitors and analysing with technique will help to take important decisions for your brand.