• Whether or not your main channel of sales is Ecommerce, Ecommerce
pricing data and analysis are crucial for a retail business to stay current
• Competitor monitoring gives you powerful competitive insights and
inspiration to stay ahead.
• Tracking, collecting, cleaning, and sorting pricing data manually for
analysis was time-consuming, one-dimensional, and not always accurate.
• Ecommerce pricing data includes the competitor’s product prices and
the various aspects that affect them.
• Proper analysis of pricing data means to look beyond the prices and
leveraging historical data.
Consumers are technologically savvy and research just about anything they want to
buy online before making a purchase decision. While only 20%
of all retail sales
occur online, over 60% of all retail
shopping begins online. If you look at the
things customers research while shopping, the price of the product is at the top
of the list.
However, this does not mean that the customers are buying from the store
offering the lowest price. They also consider product availability, reviews,
shipping, and promotions. This is why pricing data and its analysis has become
more than just knowing your competitor’s product price and whether or not your
main channel of sales is Ecommerce. Pricing data and analysis is crucial if you
want your retail business to stay current and profitable.
How was pricing data traditionally collected and
Before computers and excel sheets, collecting pricing data involved manually
walking into stores and checking prices or forming associations where business
owners set the minimum or maximum selling price to ensure fair trade. Either
way, there was no surefire way of ensuring accuracy or enforcing fair trade
which left both the customers and the business owners at a disadvantage.
The advent of technology did not make much difference initially. Data still had
to be collected, cleaned and sorted manually for analysis. This was both
time-consuming and not always accurate. The data collected were also quite
one-dimensional and never really gave the business owners the complete picture
of the competitive landscape.
Furthermore, decision-making involved a lot of assumptions and guesswork and even
when the business found their strategic sweet spot, forecasting market changes
was challenging and therefore response to it rather slow.
What is Ecommerce pricing data?
The retail industry was already one of the most competitive and while the advent
of Ecommerce did not slow traditional retail shopping, it did make the retail
landscape more competitive, aggressive, and fluctuating. To keep up with the
rapidly changing market trends and more rapidly evolving customer expectations,
businesses had to rethink the way they looked at price intelligence and pricing
How has technology changed the way pricing data is
collected and analysed?
The evolution of what pricing data stood for only made it more challenging to
monitor, collect, clean, sort, and analyse the large amounts of data required to
make intelligent pricing decisions.
To tackle this challenge retailers had very little choice but to leverage
technology and so came into the picture competitor
price monitoring and
intelligence software that leverages the power of artificial intelligence to
bring you cleaned and sorted data quickly and accurately so you can append your
resources doing what only you can do best: Pricing data analysis.
How to effectively analyse Ecommerce pricing data?
Now that you have all the data you need, how can you make the best use of all the
data you have invested in acquiring?
Look beyond your competitors’ prices: There’s more to price optimisation than
just matching or skimming your prices based on your competitors.
For instance, if your brand is selling a beard trimmer for £70 and your
competitor is selling a similar product for £50, you would probably look to
reduce the price of your product to make your customer choose your product over
your competitors. But what if the competitor’s trimmer had terrible reviews or
faulty shipping or worse, no stock?
All you have to do is offer an attractive promotion to reel your competitor’s
dissatisfied customers into your business or offer your existing customers a
good referral deal to make them feel valued and capitalise on them to attract
The options are endless when your data is multidimensional and you take into
account all of them while making pricing and promotion decisions.
Leverage historical data to forecast the future: While current data can help you
stay ahead of your competitors now, leveraging historical data be it price,
promotion, or stock status can help you forecast both your customer and
competitor behaviour to better prepare you for the future and avoid any
For example, say the past couple of years your competitor has been launching
holiday editions of their products or special holiday promotions, you can also
do something similar to engage your customers or better, offer something
exclusive and special only for your existing customers to make them feel valued
and not lose them to the competition but at the same time create a sense of
exclusivity and excitement around your product.
Another way to leverage historical data is to observe how your competitors stock
their products and optimise your inventory to make sure you are better stocked
when your competitor runs out. This way, you can also forecast and plan
promotions to capitalise on the demand during that period.
Use pricing data to do more than price optimisation: The best part of data,
especially large amounts of data, is the different ways you can segment,
analyse, and interpret them based on your goals.
You can use pricing data and trends in relation to sales to gauge the
effectiveness of your sales and marketing strategy. The historical promotion
data can help your marketing team plan their strategies to effectively beat your
competition. Price index data will let you see which of your competitors are
offering similar products for prices that are significantly lower or higher than
you. The former could mean they are getting a better deal from their supplier or
have cracked something in their cost that you have missed.
Data such as customer reviews can help you discover the experience your
competitors are providing to gain inspiration and give your own customers a
better experience or find out where their customers are dissatisfied and find a
way to capitalise on it. For example, if your competitors' reviews are filled
with defects while shipping or shipping delays, then that’s something you can
perfect and boast about to acquire their customers.
With AI-powered price intelligence software like Pricechecker that fetches you
not just data regarding competitor prices but also promotions, stock status, and
reviews along with historical data for all these aspects that affect your
pricing strategy, your opportunities to analyse and take data-driven decisions
If you haven’t deployed price intelligence software for your business yet, talk
to us and we will set you up with a free demo account so you can see for
yourself the magic of pricing data for your business!