What is competitor price tracking? How to use it and what for? Let’s find the answers to these questions.
Did you realize that whenever we receive a coupon, our bodies release a hormone called Oxytocin, commonly known as the “happy” hormone? Scientific studies have proven that incredible deals genuinely bring delight to consumers. Not surprisingly, a staggering 88% of American shoppers took advantage of coupons while making purchases in 2020.
However, focusing on promotions solely on one platform while overlooking others can lead to customer dissatisfaction when they realize they paid the full price for a product available at a lower cost elsewhere. To address this challenge, eCommerce marketers must diligently monitor and synchronize pricing across multiple marketing channels and online marketplaces.
For medium-large eCommerce companies, attempting to manage this task manually becomes virtually impractical. This is precisely where the integration of competitor price tracking software becomes invaluable. In this article, we delve into the unique advantages of price tracking and present a diverse selection of cutting-edge price monitoring tools to streamline the entire process and ensure a competitive edge in the dynamic market.
Competitor price tracking definition
Competitor price monitoring is an advanced practice adopted by businesses to keep a close eye on their rivals’ pricing tactics and product offerings in real-time. This entails acquiring valuable insights into competitors’ prices, promotions, and product availability. By harnessing cutting-edge technology and web scraping tools, companies can automatically extract data from diverse eCommerce websites and marketplaces, enabling them to stay updated on dynamic market shifts.
Through competitor price tracking, businesses can rapidly adapt to market fluctuations and make well-informed pricing decisions. It empowers them to identify pricing trends, respond to competitor promotions, and maintain a competitive advantage. By analyzing competitor pricing data, companies can optimize their own pricing strategies to boost sales, enhance profit margins, and elevate overall business performance.
What are the benefits of tracking your competitors?
Now we will talk about the benefits of tracking your competitors so that you better understand why this is necessary.
1. Enhance the Pace of Your Price Adjustments
Consumers show great interest in special promotions, sales, and deals, and leading eCommerce companies capitalize on this by frequently fine-tuning their prices. Staying competitive demands quick adaptation to these fluctuations.
While manually tracking competitor prices is theoretically possible, it becomes impractical and inefficient for eCommerce owners to comb through countless websites daily. Fortunately, competitor price monitoring tools simplify data extraction. Leveraging web scraping technology, these tools automatically scan competitor websites and promptly alert you of any price changes, empowering you to swiftly adjust your prices in response. This ensures you can keep pace with the dynamic market and maintain a competitive edge in the industry.
2. Maintain Competitiveness on All Marketplaces
According to https://www.tutor2u.net/business/reference/dynamic-markets, n today’s dynamic market, consumers actively seek the best deals, exploring various marketplaces and websites to find them. To meet their demands, marketplaces and retailers must optimize their prices, considering factors such as customer preferences and special occasions.
Ensuring competitiveness across multiple marketplaces requires the right tools. Competitive tracking tools, for instance, automatically monitor competitor prices, empowering businesses to make real-time pricing decisions based on valuable insights. By staying updated on the competition, retailers can maximize sales and profits, resulting in substantial revenue growth.
Example: Let’s consider an online electronics retailer utilizing competitive tracking tools. By consistently monitoring competitor prices on popular marketplaces and adjusting their own prices accordingly, they attract price-conscious customers and gain a competitive edge. The result is increased sales, higher profits, and an appealing market position.
3. Outperform your competition on weekends and holidays
During festive seasons like Christmas, New Year, Black Friday, and Cyber Monday, eCommerce sales surge, and brands strive to capture their portion of the market. To gain an edge during these crucial times, competitive intelligence tools offer valuable insights into your competitors’ product offerings, inventory levels, and pricing strategies.
These tools not only provide valuable data but also allow you to set up automation rules. With automation in place, you can effortlessly adjust your prices in response to competitor moves, ensuring you stay competitive even on weekends and holidays while you rest. By leveraging these competitive intelligence tools, eCommerce brands can optimize their pricing strategies and maximize sales opportunities during peak shopping periods.
4. Gather industry insights to increase your revenue
Pricing tools offer valuable access to vast amounts of data and insights, granting you a competitive edge. Armed with these insights, you can make well-founded decisions to enhance your business.
For instance, suppose you discover that a competitor recently introduced a new product. With all the available information, including pricing and features, you can contemplate launching a similar offering to capture market share.
Moreover, these tools provide market insights on pricing competitiveness within your industry. Armed with this knowledge, you can devise innovative strategies to compete less on price and instead focus on product quality or providing an exceptional customer experience, setting your brand apart from the competition.
5. Get a better handle on stock availability
Utilizing dynamic price software brings forth an additional hidden advantage – real-time alerts when your popular products are running low on stock. While standard inventory tools can set up these alerts, the unique benefit of pricing software lies in its ability to prioritize the most critical low-quantity products for replenishment.
This insight ensures that you can swiftly focus on restocking the high-demand items, minimizing potential sales losses and maintaining a seamless customer experience. By combining pricing and inventory data, this integrated approach enables you to proactively manage stock levels and capitalize on opportunities to keep your best-selling products readily available to customers.
