pricechecker

Price Analysis – Learn to Analyse Your E-commerce Pricing Data Effectively

Price Analysis – Learn to Analyse Your E-commerce Pricing Data Effectively As technology is upgrading, consumers are getting more aware of the products and services they are buying online. Gone are the brick and mortar eras where customers were warned to be aware. Customers are well aware of the fact that the online prices of […]

Price Analysis – Learn to Analyse Your E-commerce Pricing Data Effectively

As technology is upgrading, consumers are getting more aware of the products and services they are buying online. Gone are the brick and mortar eras where customers were warned to be aware.

Customers are well aware of the fact that the online prices of the same products differ as per the website. So, they scroll through different websites until they get the best deal. Consumers use various tools to substantially decrease the time that is taken in this search.

You, as a business person, have a responsibility to understand that process and use various tools for the betterment of user and consumer experience. As well as this, you might have a major concern that with every day passing by, the number of people entering into online business is increasing. Due to this, the competition gets stiffer every day.

You, as an online seller, are advised to do your best and endeavour to surpass this competition. You will have to understand that there is no effortless way to do this. Then why are we here? We can guide you to take your initial step to overcome this competition.

The very first thing that you will have to accept is that price plays a major role for buyers to decide whether to buy a particular product or not. The online market, at this time, is flooded with similar or same products of different brands. As the features of products are the same, the matter of concern comes to the price of the product.

If you still believe that features play a major role in marketing and buying-decision, here’s some research for you. The research clearly shows that buyers are 27% convinced by the price of the product.

Will I ever be able to get ahead in such stiff competition?

Yes! Of course. You don’t need to feel hopeless about these facts. All you need to do is understand reality and take action upon it. Here’s the first step:

Conduct price analysis for your product

You might be thinking that it will be a stressful process, but believe me, it’s not.

The first step towards standing out in this competition is to have a look at where do you really stand now?

So, for starters, see who your direct competitors are and the ones who compete indirectly—the prices they are offering as compared to your price.

Consumers are well-informed and aware of how to find the best prices, so you also need to be smart enough.

Consider calculating price index

When you have identified your competitors, it is necessary to know the standard prices of all your products in the market.

Here, the price index is not discussed in detail. But yes, we can discuss it in another blog, which tells, “How you can conduct Price Index Analysis.”

For a brief, I’m giving the formula for getting the price index for each product.

(COMPETITOR PRICE / YOUR PRICE) * 100

Why do you need to get an average price for each of your products?

In case the price index of your competitor of a particular brand product is better than that of yours, it is a possibility that they are getting the product at a lower cost. As you know, you can bargain with your supplier.

In case the price index of your product is better than others, you have a competitive advantage; thus, you can simply increase sales by focusing on the marketing of that brand.

If a brand doesn’t seem to be profitable, you can take your steps back and focus on some other brand products which are profitable enough.

So, having information in your hand would help you get to the right decision faster and easier.

Use historical price records

We understand that if you start maintaining the pricing records of your competitors, it would cost you time and money.

But it would be very helpful for you in the long-term. Understanding the price strategies like discounts they offer during festivals, off-season, etc. when are prices at peak and other minor details of your competitors would assist you in planning your price strategies and would reduce the risk of loss to minimal.

Apart from analysing the competitor’s records, you can also get insights into your records. Some points that should be noticed are about the brands that are sold the most, elasticity of products of different brands, which pricing strategy yields the most results for you. In addition, you can also track the demand of various brands at different prices.

Now, we’ll see how we can make this troublesome process easier.

Change your game with price comparison software

You can track competitors’ price record while adjusting your prices as per your requirements and maintain a long-term pricing record with the help of pricing software.

There are online sellers who prefer to make their own tracking records, and some use pricing SaaS. We also provide pricing software, Price Checker, which provides all the above facilities.

For example, you can instruct to keep the price 5% below-average while not compromising on the 14% margin. The software will do it for you. Simple!

These short and long term records can change your game in some time and will start to yield more profits.

Final words

When you are a part of retailers selling their products online, you must know the value of effective pricing strategies as consumers constantly look for the best prices available.

Firstly, you should know your position in your competitive landscape, along with the knowledge of your direct and indirect competitors. Then, you need to make an appropriate decision regarding different brands as per the price index of different products.

In order to get leverage over competitors in long-term, competitor pricing must analyse trends and patterns of competitors. To make it easy and less stressful, you can take the assistance of tracking software like Pricechecker.

FREQUENTLY ASKED QUESTIONS (FAQs)

Q1. How can I compare and analyse the prices of competitors?

Ans. It’s a simple three-step formula:

  • Track prices of your competitors
  • Calculate and compare price index
  • Notice trends and patterns by analysing historical pricing records.

Q2. I have often heard the term Fair Price. What is it?

Ans. A fair price is basically a price that is consistent with what the buyer is ready to pay for your product. Like what is the maximum price that the buyer is willing to pay for your product.

Q3. What pricing strategy would be best for me to adopt in my business?

Ans. In order to determine the perfect pricing strategy for your business, you need to keep knowledge of all the pricing strategies, including their advantages and limitations.

Now, we’ll see how we can make this troublesome process easier.

Related posts

Everything You Need To Know About Price Optimisation Software

03 Jan 2023

Everything You Need To Know About Price Optimisation Software
Ecommerce Pricing Optimization
Best Pricing Strategy For Ecommerce? Up Your Pricing Game

06 Jan 2021

Best Pricing Strategy For Ecommerce? Up Your Pricing Game
Ecommerce Pricing Optimization
PRIVACY POLICY

Welcome to Pricechecker! At Moonbow Media Limited , your privacy is our priority. This Privacy Policy explains how we collect, use, and protect your personal information when you visit and use our website. By using our site, you agree to the practices outlined in this policy.

Information We Collect

Personal Information

When you use our website, we may collect personal information that you voluntarily provide to us, such as:

  • Name
  • Email Address
  • Phone Number
  • Account Information (if applicable)
Non-Personal Information

We also collect non-personal information that does not identify you individually, including:

  • Browser Type
  • Operating System
  • IP Address
  • Referring URLs
  • Pages Visited
  • Date and Time of Access
How We Use Your Information

We use the information we collect to:

Provide and Improve Our Services: To deliver the features and functionality of our website and enhance user experience.

Communicate with You: To respond to your inquiries, send updates, and provide customer support.

Analyze Usage: To understand how users interact with our site, allowing us to make data-driven improvements.

Personalize Content: To tailor content and recommendations to your preferences and interests.

Compliance: To comply with legal obligations and enforce our terms and conditions.

Cookies and Tracking Technologies

We use cookies and similar tracking technologies to enhance your browsing experience. Cookies are small files stored on your device that help us remember your preferences and track site usage. You can manage your cookie preferences through your browser settings.

Data Sharing and Disclosure

We do not sell, trade, or otherwise transfer your personal information to outside parties, except in the following circumstances:

  • With Your Consent: We may share information if you have given us explicit permission.
  • Service Providers: We may engage third-party service providers to perform functions on our behalf, such as website hosting and data analysis. These providers are contractually obligated to protect your information and use it only for the intended purposes.
  • Legal Requirements: We may disclose your information to comply with legal obligations, enforce our terms, or protect the rights, property, or safety of PriceChecker.ai, our users, or others.
Security

We implement appropriate technical and organizational measures to protect your personal information from unauthorized access, alteration, disclosure, or destruction. However, no method of transmission over the internet or electronic storage is completely secure, so we cannot guarantee absolute security.

Your Choices

You have the right to:

  • Access and Update: Review and update your personal information by contacting us.
  • Opt-Out: Unsubscribe from promotional emails or adjust your cookie settings.
  • Delete: Request the deletion of your personal information, subject to applicable laws and regulations.
Children's Privacy

PriceChecker.ai is not intended for children under the age of 13. We do not knowingly collect personal information from children. If you are a parent or guardian and believe that your child has provided us with personal information, please contact us so we can take appropriate action.

Changes to This Privacy Policy

We may update this Privacy Policy from time to time. We will notify you of any significant changes by posting the new policy on our website. We encourage you to review this policy periodically to stay informed about how we are protecting your information.

Contact Us

If you have any questions or concerns about this Privacy Policy or our data practices, please contact us at:

Email: [email protected]
Address: Moonbow Media Limited, 10 Copperhouse Court, Caldecotte, Milton Keynes, MK78NL

Thank you for choosing Pricechecker… Your trust and privacy are important to us.